Adviser Settles With SEC Over Defrauding His Family

Law360, New York (September 30, 2008, 12:00 AM EDT) -- A Tennessee-based investment adviser alleged to have defrauded his own relatives out of nearly $680,000 in a stock match order scheme settled U.S. Securities and Exchange Commission claims against him on Friday.

The SEC alleged in a Thursday complaint in the U.S. District Court for the District of Columbia that Thomas J. Smith, 51, of Franklin, Tenn., managed $6 million from three relatives and committed the fraud from March 2002 through December 2004. Smith consented to the charges that he operated a match order scheme without...
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