Former Registered Reps at Sky Capital LLC and The Thornwater Company, LP - Adam Harrington and Adam Ruckdeschel - were busted and convicted of securities fraud earlier this year and now face SEC civil charges.  

Turns out that the RRs are the same person:  Adam Harrington aka "Adam Ruckdeschel" and "Adam Harrington Ruckdeschel" was associated with Thornwater from 1999 to 2002, and at Sky Capital (nka Granta Capital from 2002 to 2005.  The 42-year old broker is a resident of Miami, FL.

Federal Sanctions. On 7/26/11, Harrington was convicted on securities fraud and other charges in the case, United States v. Ross Mandell, et al., 09-cr-662 (S.D.N.Y.).  On 5/7/12, Harrington was sentenced to 60 months in prison, followed by 3 years of supervised release, and ordered to pay $20,000,000.

On 9/26/12, the Mandell Court further ordered Harrington to pay an additional $24,880,460 in restitution to victims of his crimes.

SEC Investigation, Findings and Allegations.    From 1999 through 2005, Adam Harrington and others used material misrepresentations and omissions to cause individuals to invest in a series of purported  investment opportunities - including private placements.  In carrying out their fraudulent scheme, Harrington and cohorts are alleged to have:

• solicited millions from investors under false pretenses;
• manipulated the market in certain affiliated companies' stocks;
• failed to use investors’ funds as promised;  and,
• misappropriated and converted investors’ funds without their knowledge.

All told, the scheme raised approximately $140 million, which Harrington and others used to:

• enrich themselves;
• pay undisclosed commissions to brokers;  and,
• pay off earlier investors who had lost funds on prior purported investment opportunities.

SEC Sanctions.  The SEC case continues and Harrington has been ordered to respond to the allegations contained in the SEC Order. 
 

For further details, go to [SEC '34 Act Release 68365, 12/5/12].