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Sky Capital Raided

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Insert "FBI-Sky in morning, investors take warning"-type joke here.

Agents from the Federal Bureau of Investigation raided the Manhattan offices of brokerage firm Sky Capital LLC Monday. A person answering the telephone at Sky Capital Tuesday said that CEO Ross Mandell had no comment.
FBI special agents executed a search warrant at Sky and left with boxes of documents, according to a person familiar with the matter. The probe appears related to shares offerings to foreign investors. A spokeswoman for the District Court for the Southern District of New York declined to comment, citing a policy of not discussing the possibility of an investigation. Sky Capital LLC is a subsidiary of Sky Capital Holdings Ltd., which is also the parent company of Sky Capital UK Ltd., a British firm.
Sky Capital Holdings shares trade on the AIM exchange in Britain under the symbol SKYB. Sky Capital LLC continued to make a limited market in American shares yesterday. According to information on Nasdaq's Web site, the firm made a market in nine shares Monday. Some 25,000 shares of Sky Capital Holdings traded on the AIM market Tuesday at 16.5 pence.
Sky Capital Holdings reported on September 29 a net loss of $14 million in the year to March 31, compared with a loss of $12.1 million for the same period last year.

FBI Raids New York Brokerage Sky Capital [New York Sun}