Then there was the fact that Sky Capital actually looked like a brokerage firm.
Then there was the issue of cross trading of Sky Capital stock on the AIM.
There are no current investigations or accusations against Sky Capital or its employees by the AIM.
There were also no complaints filed against Sky Capital or Mandell from the London Stock Exchange.
One of his closest advisors at Sky Capital was the former U.S. Senator Larry L. Pressler.
Along with Mandell, Adam Harrington, also of Sky Capital, was convicted by the same jury.
FORBES: Ross Mandell Has Still Not Reported to Prison, but Hardly Free
Harrington then approached Grassie with a private placement document (prospectus and subscription agreement) for Sky Capital entities.
Mandell ran a tough ship at Sky Capital for brokers who did not perform, according to Passaro.
FORBES: Sky Capital Trial - Clients Took To Recording Brokers
There are NO current civil litigation complaints outstanding against Mandell related to his work at Sky Capital.
In 2002 and 2003 Mandell formed Sky Capital Enterprises and then took it public in March 2004.
The Sky Capital that Grabowski described had mostly losing deals, but that does not make them illegal.
Mandell started Sky Capital Holdings in 2001, taking it public on the London Alternative Investment Market in July 2002.
The government produced an expert from the London Stock Exchange, where Sky Capital traded on the Alternative Investment Market (AIM).
The quote was from a recorded conversation from Michael Passaro of Sky Capital and a client during a stock purchase pitch.
FORBES: Sky Capital Trial - Clients Took To Recording Brokers
He had gone public with Sky Capital Enterprises in 2004, and had been clean, as far as customer complaints go, for years.
The most controversial part of the testimony went to how Sky Capital Holdings stock was traded on the London Alternative Investment Market (AIM).
FORBES: Sky Capital Trial - Clients Took To Recording Brokers
Assistant U.S. Attorneys Pablo Quinones and Katherine Goldstein brought two more investors to the stand in the Sky Capital trial in Manhattan federal court.
In fact, many of the entities created by Thornwater and Sky Capital fed money to run the brokerage firm through loans that were never repaid.
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That was part of the testimony of the first witness, Robert Grabowski, in the trial of Ross Mandell and Adam Harrington, all from Sky Capital.
FORBES: Sky Capital's Ross Mandell Faces Accuser - An Old Friend
Two investors in Sky Capital entities, David Ash and Mark Halper, took the stand to explain the losses they sustained as part of their investments.
FORBES: Sky Capital Investors Get Their Day In Court -- Individual Investors Take Note
Grabowski testified that Sky Capital and its predecessor firm, Thornwater, were nothing more than stock scams that duped investors out of tens of millions of dollars.
FORBES: Sky Capital's Ross Mandell Faces Accuser - An Old Friend
McKyle Clyburn, the fourth government witness who was also an employee at Sky Capital, took the stand in the trial of Ross Mandell and Adam Harrington.
Cross trading could happen in any firm and the head of compliance for Sky Capital itself informed those within the firm that the practice was not illegal.
Halper had an opportunity to sell his shares in Sky Capital at one point but held on to them in hopes of them reaching a higher share price.
FORBES: Sky Capital Investors Get Their Day In Court -- Individual Investors Take Note
Pressler is a board member of Sky Capital Holdings, as was Matthew Carrington, a former member of the British Parliament, who sat on the board through October 2004.
What came out in trial was that Mandell had a staff that was gullible, had low self-esteem and had some skeletons in their closet prior to joining Sky Capital.
In other words, because Sky Capital shares were traded on a foreign exchange (the London Exchange Stock AIM), the U.S. courts had no jurisdiction to bring fraud charges.
FORBES: Ross Mandell Motion for Dismissal Denied - Sentencing Set
The trial of Mandell and Harrington ended with a guilty verdict on July 26th on all counts related to security fraud charges for their actions at Sky Capital.
FORBES: Ross Mandell Motion for Dismissal Denied - Sentencing Set
Stewart Grassie, an investor from Scotland, testified that he was solicited by a cold call from a Sky Capital representative and eventually decided to invest some money through Adam Harrington at Sky.
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