Ex-Sky Broker Testifies To Boiler Room Sales Tactics

Law360, New York (June 28, 2011, 7:06 PM EDT) -- A former Sky Capital LLC broker told jurors Tuesday in a New York trial over an alleged $140 million fraud scheme that he was tasked with cold-calling potential investors, using high-pressure tactics and giving misleading information.

Michael Passaro, 48, who started out as an account opener at Sky predecessor The Thornwater Co. LP, testified that he regularly sandbagged potential investors, pretending they had passed up on big deals and using other boiler room tactics.

“I would say I was one of the biggest brokers on Wall...
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