Maxwell B. Smith Sentenced in Ponzi Scheme on Elderly

Maxwell B. Smith III, 73, of Fair Haven, N.J., was sentenced to 15 years in prison for using $9.8 million of his elderly clients' savings to pay his mortgage, home renovations and vacations to France. Smith pleaded guilty to first-degree money laundering.

Smith operated a $9 million Ponzi Scheme, Health Care Financial Partners, for 17 years, victimizing a dozen elderly clients through several bank accounts he controlled. Smith's clients thought they were giving Smith money to invest in health-care facilities, but he instead used the money to pay for his personal expenses. Smith promised semi-annual interest payments of 7.5 percent to 9 percent.

In June, Smith was sentenced to seven years in prison after pleading guilty in U.S. District Court to federal mail fraud charges related to the fraud. He will serve both sentences concurrently.

Smith must pay restitution to the victims in the amount of $7,847,823, the amount taken from investors minus what he returned to clients as fake interest payments.

Smith is permanently barred from working in the securities industry in the State of New Jersey.

Over the past 17 years he was allegedly operating the Ponzi scheme, Maxwell Smith has been employed by:

Rickel & Associates, Inc.

Atlantic Group Securities, Inc.

JJB Hilliard

WL Lyons, Inc.

PNC Investments, and

Cantone Research, Inc.

If you feel you may have a claim against former broker Maxwell B. Smith, call 888-760-6552. Soreide Law Group represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses.