CHICAGO (AP) — The head of a bankrupted financial management company was convicted Tuesday of defrauding customers out of more than $500 million before the suburban Chicago firm collapsed in August 2007.

Former Sentinel Management Group Inc. CEO Eric Bloom was accused of misappropriating customers’ securities by using them as collateral for a loan received from the Bank of New York Mellon Corp. Prosecutors said the money was used to purchase securities for a trading portfolio maintained for the benefit of Sentinel’s officers, including Bloom, members of his family and corporations controlled by the Bloom family.

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