The 7th U.S. Circuit Court of Appeals in Chicago said a lower court judge reviewing bankruptcy trustee Frederick Grede’s lawsuit erred in clearing the bank of wrongdoing in its dealings with Sentinel and its chief executive officer, Eric Bloom. Writing for the appeals court, Circuit Judge Richard Posner said the bank should be treated as an unsecured Sentinel creditor, not a secured creditor, because it was aware of suspicious facts that should have led it to investigate whether Northbrook, Illinois-based Sentinel was up to no good.