Monday, April 19, 2010

McGinn, Smith Charged By FINRA in Note Case

McGinn, Smith & Co., the longtime Albany brokerage that became entangled in the criminal trial of former state Senate Majority Leader Joseph Bruno, has been accused of securities fraud by the Financial Industry Regulatory Authority.

FINRA is the self-regulating body of the securities industry. It is independent of the Securities and Exchange Commission, which is the federal government's securities watchdog, and does not have criminal oversight.

FINRA filed a complaint against McGinn, Smith dated April 5 that allges that the brokerage sold tens of millions of dollars worth of unregistered securities to clients. The document was revealed today by FINRA.

The complaint also alleges that company officials, including president David L. Smith, and Chairman Timothy M. McGinn, falsified documents.

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