FBI Agents from New Jersey and Florida arrested Sarasota resident Gary Brown, 60, Tuesday February 3rd 2009, at his BOCA POINT DR home on charges of inflating the shares of Delaware-based Skylynx Communications (to fool potential investors). A criminal complaint had been filed against Brown, the company's chief executive, in New Jersey.
The FBI says that Brown and others had been manipulating the price of Skylynx's shares since July 2003. A phone listing for Skylynx Communications had been disconnected when called by The Associated Press on Tuesday. Click here to see Skylynx Communications Delaware Corproation filing in Florida December 2003 and note some of the "others" at that time located at 500 Ringling Blvd Sarasota Fl (scroll down on link there are 5 pages).,
Potentially there might be some victims in the Sarasota area," said David Couvertier, an FBI spokesman. "If anyone believes they have been victimized we are asking them to contact the FBI," call the FBI Office in Atlantic City, NJ Office at (609) 677-6400, or the Newark, NJ office at (973) 792-3000.
According to a criminal complaint filed in New Jersey, Brown and his co-defendants purchased a "significant" number of shares in Skylynx, a Delaware-based wireless communications company.The complaint alleges that Brown, Joseph Morgan and Edward McPhee did so without the knowledge of the other shareholders. Morgan is a former accountant who raised capital for Skylynx. McPhee was a broker for Sterling Financial Investment Group Inc.
Then Brown and his gang paid brokers in cash and/or Skylynx shares, in return the brokers would purchase those shares in their customers accounts, investigators said. Brown gave Morgan and McPhee free-trading shares of the stock in return for their cooperation in promoting the company, according to the FBI.
SkyLynx Communications Inc. was a Sarasota-based company incorporated by Brown that made a flurry of acquisitions in the Internet service field in 1999 when it reported a net loss of $5.4 million for the previous year.
In 2000, Florida Division of Corporations records show the company merged with Inforum Communications Inc. in Delaware and ceased to exist as a Sarasota-based company.
Couvertier said Brown also did business under the names Starcom Wireless Networks Inc. and Basic Technology Incorporated. The FBI said that Brown and others had been manipulating the price of SkyLynx's shares since July 2003.
The FBI criminal complaint details several telephone calls and e-mails in which Brown gave specific instructions to his co-conspirators as to his intentions and plans to illegally drive the price of the shares upward.
Last week in another case, Arthur Nadel, 76, of Sarasota, was ordered held without bail on charges of wire and securities fraud brought out of New York. The hedge fund manager turned himself in to authorities after disappearing for 13 days as investors learned millions of dollars were missing.
WBI Inc private Detective Agency