Source: https://securitiesarbitrations.com/finra-hot-on-the-trail-of-unpaid-arbitration-awards/
Timestamp: 2019-04-20 16:50:44+00:00

Document:
This morning I received an e-mail from Chrystal Loyer of the FINRA Office of Dispute Resolution stating that she was from FINRA’s Case Administration Department and was checking on the status of the motion to vacate an Arbitration Award rendered by the Financial Industry Regulatory Authority in Reeve v. Sky Capital LLC and Ross Mandell FINRA-DR Arb. No. 09-02329.
Mandell, the founder and president of Sky Capital, and a party to at least fifteen (15) disclosed customer initiated investment related Arbitrations alleging fraud in connection with the sale of securities, was convicted, (along with the other Respondents in the underlying FINRA Arbitration), for the violation of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act for fraud in connection with the sale of the securities, totaling approximately $61.9 million to more than 370 investors, while he was the CEO and the registered principal of Sky Capital. United States v. Mandell, et al., 09-cr-662 (S.D.N.Y.); Securities and Exchange Commission v. Mandell, et al., 09-cv-6129 (PAC)(S.D.N.Y. July 8, 2009)(Mandell v. Reeve, et al., Civil Action No. 1:10-cv-6530).
Mandell is presently in federal prison and is expected to be released sometime in February 2025.
As to FINRA’s request and Mandell’s Motion to Vacate the Arbitration Award in October 2011, Judge Sullivan of the United States District Court for the Southern District of New York confirmed the award, and issued an opinion, as to generally why the motion to vacate lacked any merit. Mandell v. Reeve 2011 U.S. Dist. LEXIS 114804 (S.D. N.Y. Oct. 4, 2011)(Sullivan, J). Mandell appealed to the United States Second Circuit Court of appeals, which in February 2013, affirmed Judge Sullivan’s ruling. Mandell v. Reeve, Civil Action No 11-5238 (2d Cir. Feb. 4, 2013).
Since that time, notwithstanding that Mandell’s Reality Television Series: Facing Life, , was never “greenlighted” by Hollywood, Ross Mandell’s wife continues to live in a $4 million Boca Raton Florida mansion. Their two children attend $50,000 per year private schools, and although it is claimed that the couple have no assets, we are waiting for Ross Mandell or one of his shell companies to appear in the Panama Papers.
However, what is most interesting, is why now, more than four years later, FINRA is somehow concerned as to the disposition of our arbitration award.
Just for 2013, PIABA found that of the 225 awards in which some amount of damages was awarded, there were 75 awards issued in 2013 that went unpaid.
Some suggest there is a reason why the self-regulatory organization FINRA does not publish data about investors with unpaid arbitration awards.
I guess that is why FINRA contacted me this morning to find out what happened to our five year old case and our $1 million unpaid arbitration award. Perhaps they are “looking into” it.

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