Albany Brokers Sentenced For $4M Ponzi Scheme
Two upstate New York investment brokers have been given federal prison sentences for diverting more than $4 million of their clients' funds to pay personal expenses, their firm's employees and its preferred clients.
Local media outlets report that 65-year-old Timothy McGinn of Clifton Park was sentenced Wednesday to 15 years and 68-year-old David Smith of Saratoga Springs got 10 years. A federal judge in Utica also ordered them to pay $5.7 million in restitution and costs.
They were convicted in February on multiple counts of mail and wire fraud, securities fraud and filing a false income tax return.
Authorities say the now-defunct securities firm the two men founded had diverted the funds between November 2008 and April 2009, when it shut down.
© 2013 AP