Investors begin quest for compensation in £90m boiler room scam

clock

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 Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment General

'Don't panic' — dealing with client emotions in a volatile market

'Don't panic' — dealing with client emotions in a volatile market

Advisers remind financial planning ‘is about the 'longer-term view’

Julia Bahr
clock 03 March 2023 • 6 min read
'Ambiguity and individualism': Advisers on rising investor demand for ESG

'Ambiguity and individualism': Advisers on rising investor demand for ESG

‘Lack of cohesive structure’ 

Julia Bahr
clock 01 September 2022 • 4 min read
Macroeconomic and geopolitical worries fuel advisers' bearish outlook - Schroders

Macroeconomic and geopolitical worries fuel advisers' bearish outlook - Schroders

‘A rapidly changing investment landscape’

Julia Bahr
clock 21 June 2022 • 4 min read