The former chief executive officer of the now-defunct hedge fund firm Sentinel Management Group has been convicted of fraudulently misleading clients in a $500 million investment scheme.
Bloomberg Businessweek reported that a jury in Chicago on Tuesday found Eric Bloom guilty of 18 counts of wire fraud and one count of investment adviser fraud.
Bloom was indicted in 2012 on charges he and another individual cheated at least 70 investors of more than $500 million through Chicago-based Sentinel. The pair told clients that their money would be invested in safe, liquid assets when it was actually engaging in risky trading.
Bloom faces up to 20 years in prison.