Financial adviser admits to $9M sham that funded his gambling and international travel

A New Jersey-based financial adviser has admitted operating a scheme that defrauded investors of more than $9 million.
NOV 18, 2009
A New Jersey-based financial adviser has admitted operating a scheme that defrauded investors of more than $9 million. Sixty-nine-year-old Maxwell Smith of Fair Haven pleaded guilty Tuesday to a five-count criminal information charging him with mail fraud. Smith will remain free on bail pending sentencing on Feb. 26. He faces up to 20 years in prison per count and a $250,000 fine, although the actual sentence could be far less under federal sentencing guidelines. Prosecutors say Smith created a sham investment fund, promising clients tax-free returns of up to 9 percent annually. Instead of investing the funds, Smith admitted using the money for personal expenses, including gambling and international travel.

Latest News

Modera, Simplicity announce new acquisitions in busy day for industry M&A
Modera, Simplicity announce new acquisitions in busy day for industry M&A

Two RIAs expand their geographic footprints with deals in New York's Capital Region and coastal Alabama.

Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets
Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets

A 27-year Merrill veteran, Florida advisors, and a trio of New Jersey advisors just moved to new platforms.

LPL Research launches 17 model portfolios, hitting $100B in AUM
LPL Research launches 17 model portfolios, hitting $100B in AUM

Broker-dealer expands its model portfolio platform with modular building block strategies designed to give advisors greater customization at scale.

Wealth Enhancement adds $592M Chicago-area RIA
Wealth Enhancement adds $592M Chicago-area RIA

The mega-RIA with roughly $160 billion in client assets remains firmly in acquisition mode amid rumors of private equity giants vying to scoop it up.

Annuity sales hit a record as war and Fed jitters redraw fixed income
Annuity sales hit a record as war and Fed jitters redraw fixed income

Record annuity demand for principal protection collides with the most hawkish Fed dissent since 2016.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income