The US Court of Appeals sitting in Chicago ruled that FCStone, LLC and other customers who initially posted funds in a segregated customer account at Sentinel Management Group were entitled to recover their funds on a priority basis after their funds were improperly commingled by the defunct money manager with other customer funds. At the relevant time, Sentinel Management was registered with the Commodity Futures Trading Commission as a futures commission merchant and with the Securities and Exchange Commission as an Investment Adviser. In its decision, the court quoted from the amicus brief filed by the Futures Industry Association that had argued that any other outcome would open the door for “non-futures claimants in future FCM bankruptcies to litigate the rights to futures margin account property, creating perilous delay and rendering unpredictable the return of futures customers’ assets.” (Click here for background regarding Sentinel Management in the article “Sentinel Management Former CEO Sentenced to 14 Years in Prison for Fraud; Former Head Trader Receives Eight-Year Term” in the February 1, 2015 edition of Bridging the Week.)