Posted at: 10/12/2012 8:54 AM
Updated at: 10/12/2012 9:43 AM
ALBANY, N.Y. (AP) - Federal prosecutors have charged two Saratoga County investment brokers with diverting nearly $1 million of their clients' funds to pay their firm's employees and its preferred clients.
The U.S. Attorney's Office in Albany says 66-year-old David Smith of Saratoga Springs and 63-year-old Timothy McGinn of Clifton Park were charged Thursday in a superseding indictment that included multiple counts of mail and wire fraud, securities fraud and filing a false income tax return.
They both pleaded not guilty during their arraignments Thursday in federal court in Albany.
Authorities say the now-defunct securities brokerage and dealership the two men founded had diverted the funds between November 2008 and April 2009. The firm shut down that year.
Smith and McGinn were originally indicted in January. Their trial is scheduled to start Nov. 13.
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