Feds want release of all McGinn, Smith assets for victims
Brendan J. Lyons
Albany
U.S. securities regulators who are seeking to recover assets for victims of the region's largest financial scheme have asked a federal judge to release all of the assets of David L. Smith and Timothy M. McGinn, who were convicted in 2012 of defrauding hundreds of investors.
In papers filed this week in U.S. District Court in Albany, a federal receiver and the Securities and Exchange Commission say that more than $20 million has been recovered and could be used to pay part of the losses of an estimated 800 victims who lost money in the years-long fraud scheme. That figure is far short of the $124 million that the SEC has said may have been lost by investors.
The SEC's request, known as a motion for summary judgment, contends McGinn and Smith, who co-founded their Albany brokerage, McGinn, Smith & Co., in 1980, have no defense to the SEC's civil complaint because of their related criminal convictions 18 months ago. The government also argues that roughly $5 million in assets that are assigned to Lynn Smith through a family trust and stock accounts should be distributed to the victims because the funds were actually controlled by David Smith and used as part of his brokerage scheme.
http://www.timesunion.com/local/article/Feds-want-release-of-all-McGinn-Smith-assets-for-5614066.php
