BY HERALD STAFF
SARASOTA - Gary Brown, chief executive officer of Skylynx Communications in Sarasota, was arrested by FBI agents today and charged with conspiracy to commit securities fraud.
Agents from New Jersey and Florida arrested Brown, 60, saying he devised and implemented a scheme to artificially inflate the price of shares of Skylynx Communications.
A Delaware company, Skylynx developed wireless communications.
Sign Up and Save
Get six months of free digital access to the Bradenton Herald
The FBI said "Brown and co-conspirators Joseph Morgan and Edward McPhee acquired ownership and control of a significant number of Skylynx shares."
They paid brokers for purchasing the shares in their retail customers' accounts, the agents said. The FBI said Brown gave Morgan and McPhee free-trading shares of Skylynx in exchange for their cooperation in promoting Skylynx. and that the three "knowingly and intentionally engaged in the artificial manipulation of the price of Skylynx" since July of 2003.