Accused Fraudster’s Wife Should Sell Home: 2nd Circ.

Law360, New York (August 8, 2011, 2:30 PM EDT) -- The Second Circuit ruled Monday that a lower court had properly allowed the sale of a Florida vacation home owned by the wife of David Smith, whose McGinn Smith & Co. brokerage is embroiled in a $136 million securities fraud suit.

U.S. Magistrate Judge David R. Homer acted within his authority to sell Lynn A. Smith's Florida vacation home in light of it declining in value from $2.4 million to $1.7 million because of "the 'sweeping mandate manifest in the securities laws,' and the district court's...
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