Advisers with clients exposed to boiler room brokerage Sky Capital have begun enquiries into compensation, IFAonline understands.
Six directors of the firm were convicted in July 2011 of a $140m (£89m) fraud by a US court. The New York Attorney's office said that former CEO Ross Mandell and senior broker Adam Harrington were "masters of deception who had no qualms about lying to investors, manipulating stock prices, and using dubious trading practices to enrich themselves at the expense of their victims." The pair, along with four co-defendants, made misleading statements to inflate the broker's share price, and used the funds to pay commissions to brokers disguised as bonuses. Despite its US base, the majori...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
