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...
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