ALBANY, N.Y. (AP) – Partners in an upstate New York securities brokerage and dealership face fraud charges, accused of siphoning more than $2 million of investor funds into their private accounts before McGinn, Smith & Co. shut down in 2009.
Prosecutors say 63-year-old Timothy McGinn of Clifton Park and 66-year-old David Smith of Saratoga Springs committed wire and securities fraud and filed false tax returns.
According to authorities, they sold $37 million in investor trusts from 2006 through 2009, taking $1.8 million in underwriting fees and $4.5 million in other fees, while diverting another $1.4 million to McGinn and $1.6 million to Smith.
Defense attorney E. Stewart Jones says they did nothing illegal, were hurt by the national market failures and would have made investors whole if they had been allowed to keep working.
(Copyright 2012 by The Associated Press. All Rights Reserved.)