SEC charges former Philadelphia broker with fraud
Paul Smith allegedly raised $2.35 million without telling his broker-dealers.
The Securities and Exchange Commission has charged ex-broker Paul W. Smith with operating a long-running investment advisory fraud.
The SEC’s complaint, filed in federal court in Philadelphia, alleges that from 1991 to 2016 Mr. Smith raised approximately $2.35 million from about 30 investors—many of whom were his brokerage customers—by claiming 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 employers.
The SEC alleges that Mr. Smith made very few securities investments and instead largely used investors’ money to repay other investors, and for his own personal use.
During the period of the fraud outlined in the SEC complaint, the Financial Industry Regulatory Authority Inc.’s BrokerCheck records indicate Mr. Smith worked for Bolton Global Capital from 2007 to 2017; Philadelphia Brokerage Corp. from 2002 to 2007; Tucker Anthony from 2000 to 2002; and Janney Montgomery Scott from 1990 to 2000.
The Financial Industry Regulatory Authority barred him in June in connection with the activities charged in the SEC case.
Mr. Smith began his securities career in 1992 at Prudential-Bache Securities and worked at five firms before joining Bolton.
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