Ex-Thornwater Exec Pleads Guilty In $140M Fraud Case

Law360, New York (January 25, 2011, 6:25 PM EST) -- The former president of The Thornwater Co. LP pled guilty Tuesday to participating in a $140 million investment fraud and stock manipulation scheme involving the company and Sky Capital Holdings Ltd.

Robert Grabowski entered his plea before Judge Paul A. Crotty in the U.S. District Court for the Southern District of New York, admitting he helped solicit “millions of dollars from investors under false pretenses” for the broker-dealers.

He could face a maximum sentence of 65 years in prison on the securities fraud, wire fraud, mail...
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