The Securities and Exchange Commission has charged Chicago-based Sentinel Management Group of fraud and misappropriation of clients’ assets, including using customers’ securities to obtain loans of up to $500 million, according to the Chicago Tribune.

In a lawsuit that the SEC filed Monday, the Commission says that Sentinel secretly transferred at least $460 million of its clients’ assets into the company’s in-house trading account. This occurred at least several months prior to its financial trouble becoming public last week. The company then used those assets to obtain loans from the Bank of New York, the lawsuit says.

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