Two and a half years after the FBI paid Sky Capital’s offices a visit , six connected to the firm have been arrested in what Bloomberg describes as a 10 year $100 million fraud. It’s not clear whether the first visit was related to the current charges.
Details so far are sketchy. We wonder if the SEC was also involved, or if this is another case where they slept as another agency did their work.
Update: Looks like the SEC was involved and that it was connected to the FBI raid in 2006:
The U.S. Securities and Exchange Commission today sued New York-based broker-dealer Sky Capital LLC and six individuals allegedly involved in a boiler room scheme that raised millions of dollars from U.S. and U.K. investors whose holdings later became worthless.
FBI Arrests Six in 10-Year, $100 Million Fraud, Spokesman Says – Bloomberg
New York Broker Sky Capital raided by FBI; CEO “was one of the bad boys of Wall Street”
Tags: arrests, FBI, fraud, SEC, Sky Capital
