SEC Largely Prevails in Action Over McGinn Smith $125M Offering Scam

The U.S. District Court for the Northern District of New York Feb. 17 in large part granted the Securities and Exchange Commission’s summary judgment motion against defendants David Smith and Timothy McGinn over their alleged roles in a $125 million offering-fraud scheme at Albany, N.Y.-based broker-dealer McGinn Smith & Co. (SEC v. McGinn Smith & Co., 2015 BL 39755, N.D.N.Y., 1:10-cv-457 (GLS/CFH), 2/17/15).

Among other specifics, the court agreed with the commission that summary judgment is appropriate on its antifraud claims based on the preclusive effect of a related criminal prosecution.

However, Judge Gary Sharpe said he ...