Ex-Board Member Says Sky Capital Was 'Complete Mess'

Law360, New York (July 1, 2011, 4:34 PM EDT) -- A former board member of failed Sky Capital Holdings Ltd. testified Friday in the New York securities fraud trial against the company's founder that the company was running up expenses on hotels, limousines and strip clubs even as it was collapsing.

Sean T. Castelloe told jurors in Manhattan federal court that Sky “was a complete mess” by the time he became a director in 2007, a move he made to help recoup money for himself and others who had invested in the firm.

“They needed further...
To view the full article, register now.