December 11, 2017 Comments (0) Current Investigations, Securities Fraud

SEC charges Paul W. Smith with Investment Advisory fraud

Paul W. Smith
(Last Updated On: January 25, 2018)

Paul W. Smith allegedly raised $2.35 million from 30 Investors

According to federal court papers, the Securities and Exchange Commission has charged Paul W. Smith, a former Pennsylvania financial representative, with operating a long-running offering and investment advisory fraud.

The SEC’s complaint, filed in federal court in Philadelphia, alleges that Smith raised approximately $2.35 million from about 30 investors, including his brokerage customers. He allegedly claimed he would invest their money in publicly traded securities through The Haverford Group, an outside partnership that he formed and did not disclose to his broker-dealer, Bolton Global Capital.

The SEC alleges that Smith used investors’ money to repay other investors, and for his own personal use, instead of investing the funds.

According to his FINRA BrokerCheck report, Smith was registered with Bolton Global Capital in Wayne, PA from May 2007 until he was discharged in February 2017. Smith was barred by FINRA in June in connection with the activities charged in the SEC case. He has 11 customer disputes listed on his broker report.

Failure to Supervise

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.

Free Consultation

Did you suffer losses investing with Paul W. Smith? If so, the attorneys at The White Law Group may be able to help you to recover your losses. For a free consultation, please call (888) 637-5510.

The foregoing information, which is all publicly available, is being provided by The White Law Group.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information, please visit our website, www.whitesecuritieslaw.com.

 

 

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