SEC Seeks Sanctions In McGinn Smith Fraud Case

Law360, New York (February 1, 2011, 7:14 PM EST) -- The U.S. Securities and Exchange Commission is seeking sanctions against two attorneys and the wife of McGinn Smith & Co. Inc.’s co-founder for allegedly misrepresenting a trust during its $136 million fraud case against the firm and its founders.

In a motion filed Monday in the U.S. District Court for the Northern District of New York, the SEC claimed Lynn A. Smith, the wife of McGinn Smith co-founder David Smith, and her attorney hid the fact that a $4 million trust would pay the Smiths nearly...
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