NEW YORK (Reuters) - Six employees of Wall Street retail brokerage Sky Capital ran a $140 million (87.5 million pound) "trans-Atlantic boiler room" to diddle investors in the United States and Britain, authorities charged on Wednesday. U.S. prosecutors announced a crooked indictment of securities, wire and post deception against broker-dealer founder, President and Chief Executive Officer Ross Mandell, 52, and five others while the U.S. Securities and Exchange Commission also filed lay charges.
The SEC squawk said brokers raised $61 million between 2002 and 2006 from investors, but then enforced a programme that prevented them from selling their stocks in Sky Capital Holdings and Sky Capital Enterprises (Sky Entities). They were publicly traded on the Alternative Investment Market of the London Stock Exchange until 2006.
