McGinn Smith Founder's Wife Seeks To Avoid $1M Penalty

Law360, New York (March 13, 2012, 8:18 PM EDT) -- The wife of McGinn Smith & Co.'s founder asked the Second Circuit on Tuesday to reverse an order that she pay $1 million for allegedly hiding money from securities regulators, arguing she had not intended to mislead anyone.

Lynn Smith, wife of the brokerage founder and alleged securities fraudster David Smith, was ordered to pay more than $1 million in sanctions and U.S. Securities and Exchange Commission attorney's fees after she took $600,000 out of her children's trust fund.

The SEC, which had frozen the couple's...
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