Sky Capital Exec Cops Plea In $140M Securities Fraud

Law360, New York (February 15, 2011, 6:35 PM EST) -- The former chief operating officer of Sky Capital LLC has pled guilty to securities fraud over his role in a $140 million investment scam.

Stephen Shea, a 38-year-old Brooklyn, N.Y., man, admitted Monday in the U.S. District Court for the Southern District of New York that he took millions of dollars investors had entrusted to Sky Capital and directed it toward himself and other defendants.

Investors thought their money was going into private placements and other securities investment opportunities but much of it ended up elsewhere:...
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