"What you have is a case based on a flawed foundation," Bachner said. "They've been paid with something more profitable, they've been promised their freedom. Keep in mind their motivation here."
Boiler Room
The U.S. Securities and Exchange Commission filed civil charges in the case on the same day the six were arrested, accusing the suspects of raising more than $61 million in a so- called "boiler room" scheme that restricted investors from selling their shares.
The SEC said Sky Capital raised the money from September 2002 to November 2006, implementing a "no net sales" policy that prevented investors from selling their stocks in two Sky companies. When trading in those stocks was suspended by the London Stock Exchange in 2006, the investments were rendered worthless.
The criminal case is U.S. v. Mandell, 09-cr-00662, U.S. District Court, Southern District of New York (Manhattan).