FBI arrests 6 in Wall Street fraud case

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FBI arrests 6 in Wall Street fraud case
1
Wed, 07-08-2009 - 10:31am
FBI: 6 Persons In Custody In Multimillion Dollar Fraud Scheme

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200907080958dowjonesdjonline000602&title=fbi6-persons-in-custody-in-multimillion-dollar-fraud-scheme


NEW YORK -(Dow Jones)- The Federal Bureau of Investigation has six people in custody in connection with a multimillion securities fraud case, a FBI spokesman confirmed Wednesday.


The spokesman, James M. Margolin, said the individuals, who worked at a New York brokerage firm, surrendered Wednesday morning. He declined to discuss details of the case because the paperwork hasn't been unsealed.


A spokeswoman for the U.S. Attorney's office in Manhattan declined comment.


More........


UPDATE 1-Six surrender over NY brokerage fraud-FBI


http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN0837809420090708


NEW YORK , July 8 (Reuters) - Six employees of a retail brokerage surrendered to the FBI in New York on Wednesday as they face charges for a purported $140 million fraud, an official at the FBI said.


The brokerage has offices in the United States but many of the defrauded customers were in Britain and New Zealand, said the official, who declined to identify the firm until formal charges are made public.


A spokeswoman for the Office of the U.S. Attorney in Manhattan declined comment.

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Registered: 03-18-2000
Wed, 07-08-2009 - 2:27pm

Update: Now we have the name of the company.......


Six Sky Capital Executives, Brokers Charged in Fraud


Complete article at link......


http://www.bloomberg.com/apps/news?pid=20601103&sid=atpurSsu41XI#


Six former Sky Capital LLC executives and brokers were indicted by a federal grand jury in what prosecutors said was a $140 million stock fraud.


The six, including Ross Mandell, chief executive officer of Sky Capital units, were accused of manipulating shares in two Sky Capital companies traded on the Alternative Investment Market of the London Stock Exchange.


“The manipulation was designed to make it appear that there was more demand” for the stock of the two companies “when in fact there was not,” Acting U.S. Attorney Lev Dassin in New York said today in a press release.


Along with Mandell, 52, prosecutors charged Stephen Shea, 37, Adam Harrington, 39, Robert Grabowski, 41, Michael Passaro, 46, and Arn Wilson, 52. They’re accused of conspiracy and securities fraud, which carry a combined maximum of 25 years in prison.


The six were taken into custody by the Federal Bureau of Investigation and will appear in Manhattan federal court later today.


“Mr. Harrington engaged in absolutely no improper conduct during his tenure at Sky,” his lawyer Michael Bachner said in an interview.

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