Six charged in $140 million NY brokerage fraud
Court Alerts
Six employees of Wall Street retail brokerage Sky Capital Holdings Ltd surrendered to the FBI on Wednesday on charges of a $140 million investment fraud and stock manipulation in the United States and Britain, officials said.
The firm's founder, President and Chief Executive Officer Ross Mandell and five others were charged in a criminal indictment announced by U.S. prosecutors and parallel civil case by the U.S. Securities and Exchange Commission.
The six were charged in a two-count indictment to commit securities, wire and mail fraud for a purported scheme to defraud investors between 1998 and 2006.
Calls to phone numbers listed for the New York brokerage went unanswered or were busy.
A published overview of the company said that Sky Capital Holdings, through subsidiaries such as Sky Capital LLC, provided financial services and products for international clients. It has another subsidiary Sky Capital UK Ltd.
Until late 2006, Sky Capital's shares were traded on the Alternative Investment Market of the London Stock Exchange.
"Investor funds were substantially used to enrich the defendants and others; to pay excessive undisclosed commissions to brokers and to pay off victims who had lost money through prior purported investment opportunities," the Office of the U.S. Attorney in Manhattan said in a statement.
Apart from Mandell, other principals and employees Stephen Shea, Adam Harrington, Arn Wilson, Robert Grabowski and Michael Passaro surrendered to the FBI on Wednesday morning, FBI spokesman Jim Margolin said.
They were expected to appear in Manhattan federal court later in the day.
Related listings
-
Scientist in NYC says she's not against America
Court Alerts 07/07/2009A U.S.-trained Pakistani scientist accused of helping al-Qaida has repeatedly interrupted her competency hearing to declare her innocence and insist she's not anti-American.The outbursts came during a daylong hearing in federal court in Manhattan to ...
-
Scientist's mental state at issue in NYC hearing
Court Alerts 07/06/2009A U.S.-trained Pakistani scientist accused of helping al-Qaida and shooting at FBI agents in Afghanistan has been forced to appear in Manhattan court by a judge's order.Aafia Siddiqui (ah-FEE'-uh see-DEE'-kee) kept her hands folded as she entered cou...
-
Mass. mom pleads not guilty to denying son meds
Court Alerts 07/06/2009A woman accused of withholding cancer treatment from her autistic son by canceling appointments and not filling prescriptions pleaded not guilty Monday to an attempted murder charge in the boy's death.Kristen LaBrie was ordered held on $15,000 cash b...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.