Investor Alert! The Financial Industry Regulatory Authority (“FINRA”) reports troubling allegations of sales practice violations by securities broker Paul W. Smith [CRD#: 1070735, Wayne, Pennsylvania]. Smith worked for Bolton Global Capital between 2007 and 2017. Namely, at least 17 investors disputed the sales practices of the securities broker. Also, SEC barred Smith for allegedly engaging in a deceptive and fraudulent scheme to draw in $2,350,000 from clients. Moreover, Smith pleaded guilty to securities fraud. Altogether, these disclosures suggest that Smith misappropriated funds and engaged in unauthorized and fraudulent transactions. Here’s more:
Paul Smith Allegedly Misappropriated Funds From Bolton Global Client
Evidently, on October 29, 2019, a Bolton Global Capital client filed FINRA Arbitration #: 19-03239 about Paul Smith. Mainly, the client contended that Smith misused funds which the client provided him for investments in Haverford Group. Allegedly, the securities broker also purportedly forged the client’s signature. Consequently, the client requested $214,000 in compensation from Bolton Global Capital or Smith. This arbitration is pending a resolution.
Smith Purportedly Sells Fraudulent Haverford Group Investment To Bolton Global Capital Client
Apparently, a client of Bolton Global contested Paul Smith by filing FINRA Arbitration #: 18-02339 on June 25, 2018. Allegedly, Smith engaged in deceptive activities by causing the client to invest in Haverford Group which the client asserted to be a fraud. Bolton Global Capital figured to settle the client’s allegations on December 11, 2018 through compensating the client in the amount of $18,750.
Bolton Global Capital Investors Indicate That Paul Smith Sold Unapproved Investment Club
Also, on June 29, 2018, a Bolton Global Capital client filed FINRA Arbitration #: 18-00075 concerning Paul Smith. It appears that Smith led the client to believe that Bolton Global Capital approved of the Haverford Group. Similar to other clients, this client alleged that Haverford Group was a “fraudulent investment club.” For this reason, on August 1, 2018, Bolton Global Capital settled this client’s dispute via a payment of $117,500.
SEC Bars Paul Smith
Notably, on May 7, 2018, SEC barred Paul Smith from the industry. This came after a final judgement dated December 20, 2017 permanently enjoining the securities broker from engaging in violations of federal securities antifraud laws. Namely, SEC’s Complaint alleged that Smith engaged in a scheme to defraud Haverford. SEC claimed that when Bolton was an investment adviser to Haverford, he misappropriated Haverford’s assets and told investors that their money was held in securities. Critically, Smith did not invest the client’s assets as he represented, and he gave clients false statements to hide his fraud.
Paul Smith Pleads Guilty To Securities Fraud, Mail Fraud
Also, as the SEC’s Order notes, in 2018 Paul Smith pleaded guilty to securities fraud (1 count) and mail fraud (1 count) in Criminal Case #: 17-cr-626. The allegations against Smith in the indictment refer to him scheming to defraud investors in Haverford by taking their money by false and deceptive representations and through false promises regarding securities transactions. Evidently, Smith was sentenced in 2018 to more than 5 years in jail for each of those counts.
Did Paul Smith Sell You Bad Investments?
SEC and FINRA both barred Paul Smith from being a securities broker. Have you experienced losses by investing with Paul Smith? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel in regard to possibly recovering your investment losses. Soreide Law Group represents clients on a contingency fee basis and will advance all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like Smith.