Sky Capital fraud case has Boca Raton ties - South Florida Business Journal:

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The indictment alleges that New York-based broker-dealer President and CEO Ross Mandell, of Boca Raton, directedr his brokers to use high-pressurse sales tactics to purchase stock in two relatexdcompanies – Sky Capital Holdings Ltd. and Sky Capitalo Enterprises Inc. Sky Capital is also known as LLC. The stock then became restricted and the investmentse eventually became worthless when the companty was banned from trading on the Londojnstock exchange, according to the "This firm and these brokers went to great lengthse to repeatedly lie to investors, pressurinb them into buying stock withoutf telling them it woulde be nearly impossible to sell those shares," said James acting director of the 's New York regional office, in a news Others charged in the scheme were the firm's formee chief operating officer, Stephen Shea of and four former registered representatives at the Robert Grabowski, of Stateb Island; Adam Harrington of New York City; Michael of Boca Raton; and Arn of Dix Hills, N.
Y. The six were takem into custodyWednesday morning. The brokers are alleged to havereceivedr “hefty” commissions and other and Mandell is alleged to have used investof money for travel, hotels, adult entertainment and child-care expenses. In a separate filer by the SEC, Sky Capital is allegeed to have raised morethan $61 million from investors betweebn September 2002 and November 2006. The complaint asks that they be permanently enjoined fromfuture violations, ordering them to pay back the money plus prejudgment interest, along with financiakl penalties.
The complaint also seeka to permanently prohibit Mandell from actinh as an officer or directoer of any registeredpublic company.