SEC Busts Up Sky Capital & Affiliates

MANHATTAN (CN) – Sky Capital and the six men who run it sold millions of dollars of securities in a fraudulent boiler scheme to investors who were restricted from selling the stock, which became worthless, the SEC claims in Federal Court.

     The SEC claims the firm’s founder, president and CEO Ross Mandell, of Boca Raton, Fla., directed Sky Capital brokers to make material misrepresentations and omissions and use high-pressure sales tactics to push stock in two related companies – Sky Capital Holdings Ltd. and Sky Capital Enterprises.
     Also charged are COO Stephen Shea of Brooklyn, and four former registered representatives: Robert Grabowski of Staten Island, Adam Harrington Ruckdeschel of New York City, Michael Passaro of Boca Raton, and Arn Wilson of Dix Hills, N.Y.
     The SEC seeks disgorgement, penalties and injunctions.

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