ALBANY, N.Y. - After four days of deliberation, a jury finds two Capital Region brokers guilty in a Ponzi-like scheme, accused of siphoning more than $2 million of investor funds into their private accounts
Timothy McGinn, 63, of Clifton Park, was convicted on 27 of 29 counts Wednesday and his partner, Daivd Smith, 66, of Saratoga Springs, was convicted on 15 of 29 charges. Both men were convicted of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, securities fraud, and filing 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 into their private accounts.
McGinn, Smith & Co. shut down in 2009.
They face up to 15 years in prison when they are sentenced in June.
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