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Six charged with 'boiler room' scheme

Published on 10 Jul 2009 under category: legal

Six former Sky Capital Holdings workers have been charged with fraud crimes.

It is alleged that these individuals, which includes former executives of the Wall Street firm, took part in a "boiler room" $140 million (£87 million) scheme over an eight-year period.

UK investors are among those thought to have been duped by this, with the men accused of running an investment scam.

The six individuals are now facing civil charges from the Securities and Exchange Commission in relation to these allegations.

Boiler room fraud crimes involved shares being sold to investors at inflated prices, with individuals taken in by these then finding it difficult to re-sell the stock that they purchased.

In other news on fraud crimes, the Serious Fraud Office is launching an investigation into the demise of MG Rover, which went into administration four years ago.

The body is looking into whether any criminal activity took place before the car manufacturer closed.