Description

The Securities and Exchange Commission charged a registered representative in Pennsylvania with operating a long-running offering and investment advisory fraud.

The SECs complaint, filed in federal court in Philadelphia, alleges that Paul W. Smith raised approximately $2.35 million from approximately 30 investors many of whom were his brokerage customers by representing that he would invest their money in publicly traded securities through The Haverford Group, an outside partnership that Smith formed and did not disclose to his broker-dealer employers. However, Smith allegedly made very few securities investments and instead largely used investors money to repay other investors and for his own personal use.

As alleged in our complaint, Smith told investors that Haverford provided steady and dependable returns, said Kelly L. Gibson, Associate Director of the SECs Philadelphia Regional Office. Those returns were a fiction. Smith was misappropriating investors money and lying to cover his tracks. This matter highlights the need for retail investors and retirees and elderly individuals in particular to remain skeptical of investments that sound too good to be true.

Subject to court approval, Smith has agreed to settle the SECs action against him by consenting to an injunction against violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8. Smith has agreed to pay disgorgement and prejudgment interest of $362,858.45, which would be deemed satisfied upon the entry of an order in a parallel criminal proceeding requiring Smith to pay a greater amount in restitution. Smith has agreed to plead guilty in the parallel criminal action brought by the U.S. Attorneys Office for the Eastern District of Pennsylvania.

The SECs investigation was conducted by Norman P. Ostrove and Scott A. Thompson in the Philadelphia office with assistance from Jennifer C. Barry, and supervised by Ms. Gibson. The examination that led to the investigation was conducted by Eric A. Elefante, Edward T. Flaherty, Ian M. Budzilowicz, Colleen D. Sigle, and Brian Carroll. The SEC appreciates the assistance of the U.S. Attorneys Office for the Eastern District of Pennsylvania and the Federal Bureau of Investigation.

Comments
Order by: 
Per page:
 
  • There are no comments yet
   Comment Record a video comment
 
 
 
     
Related Feed Entries
You can theoretically "seed" snow in the atmosphere, but it's really hard to tell if it actually works.Source: Wired - Emerging technologies News
31 minutes ago · From Wired - Emerging technologies News
Lithuania's central bank has said it is probing Bankera's initial coin offering after determining that the token offered counts as a security.Source: Coin Desk - Digital currency
41 minutes ago · From Coin Desk - Digital currency
Serious typists deserve a responsive keyboard. Here are three steps to tactile heaven.Source: Wired - Emerging technologies News
Messaging app provider Telegram has raised an initial $850 million in its controversial initial coin offering (ICO), according to a public document.Source: Coin Desk - Digital currency
3 hours ago · From Coin Desk - Digital currency
A prominent alternative to the ethereum blockchain is showing signs of building a higher base amid a period of strong market activity.Source: Coin Desk - Digital currency
3 hours ago · From Coin Desk - Digital currency
Rate
0 votes
Info
Michael Blair
Time is your GREATEST asset
07.12.2017 (07.12.2017)
7 Views
0 Subscribers
Recommend
Tags