The Sky Capital Saga Nearing Its End As Mandell Enters Prison
9/12/2014 @ 8:56AM
This week, both Ross Mandell and Adam Harrington self surrendered to federal prison in Miami. Harrington is in the Miami minimum security camp and Mandell in the Low Security facility due to his sentence term (more than 10 years remaining on his sentence). Mandell, who plans an appeal his case to the Supreme Court, currently has a release date from the Bureau of Prisons of February 21, 2025, which will be followed by 3 years of supervised release. Upon completion of his sentence, he will be 70 years old. Harrington’s release date is December 10, 2018. Both men lost at trial in July 2011 and their convictions were upheld on appeal by the 2nd Circuit in May 2014.
There are six former Sky Capital associates who have pleaded guilty and have been awaiting a sentence hearing pending the outcome of the Mandell/Harrington appeal. Those hearings are scheduled to start next week:
Philip Akel – September 16, 2014
Robert Grabowksi – September 17, 2014
Arn Wilson – September 23, 2014
McKyle Clyburn – October 8, 2014
Michael Passaro – November 10, 2014
Stephen Shea – no date set
Sentencing is always a tough day for defendants and for these guys they have been waiting for years. Even Mandell admitted at his sentence hearing in May 2012, when he told U.S. District Judge Paul Crotty, “I want you to know since that day [the raid on Sky's offices on November 6, 2006] I haven’t even had one minute of peace, not a minute.” Mandell then pleaded for a lenient sentence to Judge Crotty, “I’m baring my soul to you. I’m begging you not to take me from my family, not for one second more than you have to sir.” Judge Crotty then proceeded to hand Mandell a sentence of 12 years in prison. Judge Crotty will also be sentencing all these defendants.
This remaining cast of Sky characters will see significantly lower sentences than Mandell. In fact, Harrington’s 5 year term probably represents the high-water mark for these men who all admitted to lying to investors and committing securities fraud.
There continues to be considerable interest in the Sky/Mandell case from defense attorneys seek additional clarification of extraterritorial law enforcement (Sky stocks and transactions were primarily conducted on the London Stock Exchange London Stock Exchange (AIM) with U.K. investors). For now, the Court, at least in the 2nd Circuit, has given its interpretation in this case. However, one way or another, I’m thinking we have not heard the last from Mandell. |
