The Chicago Tribune’s Micheal Oneal reports federal prosecutors led by renowned graftfighter Patrick Fitzgerald have charged two former executives of a local investment house with bilking customers of $500 million.
It is one of the largest financial fraud case ever brought in Chicago, Oneal said.
Fitzgerald announced last week he would be stepping down at the end of June after 11 years heading the Justice Department’s Northern District office.
The firm, Sentinel Management Group, saw a spectacular collapse in August 2007 and was accused of comingingling customer and proprietary funds.
Eric Bloom and Charles Mosley, the CEO and head trader of the firm, are each charged with 18 counts of wire fraud, one count of securities fraud and one count of making false statements to an employee pension plan in a 20-count indictment that was returned by a federal grand jury yesterday, Oneal wrote.
During his tenure, Fitzgerald escorted two governors and a multitude of city of Chicago officials to prison.
He has said he has no immediate employment plans and intends to take off this summer before considering his next career move.