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Six charged in $140 million NY brokerage fraud
Court Feed News | 2009/07/08 16:21

Six employees of Wall Street retail brokerage Sky Capital Holdings Ltd surrendered to the FBI on Wednesday on charges of a $140 million investment fraud and stock manipulation in the United States and Britain, officials said.

The firm's founder, President and Chief Executive Officer Ross Mandell and five others were charged in a criminal indictment announced by U.S. prosecutors and parallel civil case by the U.S. Securities and Exchange Commission.

The six were charged in a two-count indictment to commit securities, wire and mail fraud for a purported scheme to defraud investors between 1998 and 2006.

Calls to phone numbers listed for the New York brokerage went unanswered or were busy.

A published overview of the company said that Sky Capital Holdings, through subsidiaries such as Sky Capital LLC, provided financial services and products for international clients. It has another subsidiary Sky Capital UK Ltd.

Until late 2006, Sky Capital's shares were traded on the Alternative Investment Market of the London Stock Exchange.

"Investor funds were substantially used to enrich the defendants and others; to pay excessive undisclosed commissions to brokers and to pay off victims who had lost money through prior purported investment opportunities," the Office of the U.S. Attorney in Manhattan said in a statement.

Apart from Mandell, other principals and employees Stephen Shea, Adam Harrington, Arn Wilson, Robert Grabowski and Michael Passaro surrendered to the FBI on Wednesday morning, FBI spokesman Jim Margolin said.

They were expected to appear in Manhattan federal court later in the day.



Scientist in NYC says she's not against America
Court Feed News | 2009/07/07 09:51

A U.S.-trained Pakistani scientist accused of helping al-Qaida has repeatedly interrupted her competency hearing to declare her innocence and insist she's not anti-American.

The outbursts came during a daylong hearing in federal court in Manhattan to decide whether 37-year-old Aafia Siddiqui is competent to stand trial.

She is charged with attempted murder and assault. The U.S. government says she grabbed a gun and fired at U.S. soldiers and FBI agents in Afghanistan last summer. She shouted in court Monday that she did not shoot anyone.

She also said she's not really against America and never was.

The outbursts came as psychologists testified whether she is fit for an October trial. The judge said he'll decide that later.



Scientist's mental state at issue in NYC hearing
Court Feed News | 2009/07/06 14:33

A U.S.-trained Pakistani scientist accused of helping al-Qaida and shooting at FBI agents in Afghanistan has been forced to appear in Manhattan court by a judge's order.

Aafia Siddiqui (ah-FEE'-uh see-DEE'-kee) kept her hands folded as she entered court Monday surrounded by marshal's deputies. When the judge said that she was presumed innocent, she shook her head in apparent disagreement.

U.S. District Judge Richard Berman said he would not rule on whether Siddiqui is competent to stand trial, but would hear the testimony of mental health experts.

Psychologists for both prosecutors and the defense say Siddiqui has claimed she saw some of her children in her cell. They say seemed especially disturbed by required strip searches.

Berman has entered a not guilty plea for her.



Mass. mom pleads not guilty to denying son meds
Court Feed News | 2009/07/06 13:34

A woman accused of withholding cancer treatment from her autistic son by canceling appointments and not filling prescriptions pleaded not guilty Monday to an attempted murder charge in the boy's death.

Kristen LaBrie was ordered held on $15,000 cash bail during her arraignment Monday in Salem Superior Court. She did not speak during the brief hearing, except to enter the pleas to attempted murder, child endangerment and other charges.

LaBrie's son, Jeremy, had been diagnosed with leukemia in 2006. He was 9 when he died in March.

Prosecutors say LaBrie, 37, canceled appointments for chemotherapy treatment, did not fill at least half her son's prescriptions and tried to deceived doctors into believing she was giving the boy the proper care.

Her attorney, Kevin James, said Monday that LaBrie was a victim, had financial trouble and took care of the boy on her own.

LaBrie had earlier been charged with child endangerment; a grand jury returned the more serious indictment Friday.



Rowe deciding whether to seek custody
Court Feed News | 2009/07/06 10:36

Deborah Rowe, the ex-wife of Michael Jackson and the mother of two of his children, has not reached a final decision on whether to seek custody of the children, a lawyer said Thursday.

Attorney Eric M. George made the disclosure on a telephone conference call but declined to take questions.

"The truth is that Debbie has not reach a final decision concerning the pending custody proceedings," he said. "When Debbie does take a position in the public forum of the court, those positions will of course be conveyed to all interested persons."

Earlier in the day, Superior Court Judge Mitchell Beckloff rescheduled a guardianship hearing for July 13 at the request of attorneys for Rowe and for Katherine Jackson, the singer's mother, who has temporary guardianship of her son's three children.

The legal documents filed in connection with the request were not accompanied by any petition for custody by Rowe.



Reputed mob boss pleads guilty in Mass. bribe case
Court Feed News | 2009/07/06 09:38

The reputed underboss of the New England mob has pleaded guilty to federal bribery charges in a plea deal that will send him to prison for six years.

Carmen "The Cheeseman" DiNunzio pleaded guilty Wednesday to bribing an undercover FBI agent posing as a state highway department official in an attempt to win a $6 million contract on the Big Dig highway project.

DiNunzio is expected to plead guilty next week to separate state gambling and extortion charges.

Prosecutors have agreed to wrap both cases together under one plea agreement and to recommend a sentence of six years in federal prison. Sentencing was scheduled for Sept. 24.

Authorities say the 51-year-old DiNunzio has been underboss of the New England branch of the Mafia since 2004.



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