Then there was the issue of cross trading of Sky Capital stock on the AIM.
The most controversial part of the testimony went to how Sky Capital Holdings stock was traded on the London Alternative Investment Market (AIM).
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The days of champagne-soaked launch parties and sky-rocketing stock market offerings might be over, but the buccaneer Silicon Valley spirit of innovation continues even in these lacklustre economic times.
The past year has been good to Asia's newspaper publishers, with potentially lucrative online spinoffs driving stock prices sky-high.
As the economic crisis unfolded, and fuel prices sky rocketed, DRYS stock price went on a journey in the other direction.
Its stock price has sky-rocketed, gaining 78.3% since early July, returning to its pre-Lehman values.
The government produced an expert from the London Stock Exchange, where Sky Capital traded on the Alternative Investment Market (AIM).
This strategy has limited risk: If the stock climbs to the sky, you simply deliver your shares at the strike price to fulfill the contract.
Then again perhaps they are indicating, like a supernova in the sky, what might happen to stock valuations in the next 20 years.
There were also no complaints filed against Sky Capital or Mandell from the London Stock Exchange.
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
One big reason the price keeps going up is that Russian holding firm Digital Sky Technologies is hungrily scarfing up as much Facebook stock as it can from early investors and employees.
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.
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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.
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In sectors like technology it can be even harder for private equity to compete, since valuations in some areas are sky-high and acquirers can use cash on hand and richly-valued stock to make deals.
FORBES: Private Equity Is Open For Business, So Where's That $20B Buyout?
According to an earlier report by Bloomberg, the group indicted was accused of manipulating shares in two Sky Capital companies traded on the Alternative Investment Market (AIM) of the London Stock Exchange.
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Acquisitions are becoming increasingly complicated, as the failed Groupon deal and the sky-rocketing valuation of internet start-ups (in great part due to trading in private company stock through secondary markets) make clear.
FORBES: Google's Schmidt Puts Social Media Chips On Brazil And Orkut To Fend Off Facebook
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