2 local brokers convicted in Ponzi-type scheme

Posted at: 02/06/2013 4:13 PM
Updated at: 02/07/2013 10:07 AM
By: Jessica Layton

ALBANY - After four days of deliberations, a guilty verdict reached by a federal court jury Wednesday could put the Saratoga County financiers, Timothy McGinn and David Smith away for years.

This verdict is a big fall from grace for two very well known local investors.

The 29-count indictment against both McGinn and Smith included accusations of conspiracy to commit fraud, several counts of mail fraud and wire fraud, securities fraud and filing false tax returns.

It all boils down to these two men people trusted with their hard earned money essentially duping clients out of millions and in many cases their whole life savings. Prosecutors argued McGinn and Smith conducted a Ponzi-like scheme through their Saratoga County brokerage firm.

The Securities and Exchange Commission shut down the firm in 2009.

Both men took the stand in an attempt to defend themselves during the four-week trial in Utica, but the jury didn't buy their story.

Sentencing is scheduled for the end of June.

Both men face the possibility of spending the next 30 years in Federal Prison.