Two investment brokers who cheated clients out of millions of dollars were sentenced Wednesday. David Smith and Timothy McGinn were convicted back in February. Our Innae Park joined us from Utica, where they learned their fate.
UTICA, N.Y. -- U.S. Attorney Richard Hartunian said, "Nothing can undo the terrible harm that Timothy McGinn and David Smith inflicted on investors."
Found guilty of defrauding over 800 victims and causing $30 million in losses, Timothy McGinn and David Smith were sentenced Wednesday. McGinn to 15 years in prison, Smith to 10. In all, close to $6 million to be paid in restitution.
"We believe it is the largest fraud case brought by our district," Hartunian said.
Emotions ran high both during and after the sentencings. Victims sharing their wide ranging stories, though they chose not to speak to reporters.
"One retiree was forced to sell his house and begin working again at the age of 71. Others humiliated by having to ask their children for money to get by," Hartunian said.
"To blame this all on Tim McGinn and David Smith is grossly unfair," said E. Stewart Jones, McGinn's attorney.
Lawyers for the two men say the loss of money was due to the times: The economic recession in 2008. But they weren't allowed to argue the context in court.
Smith's attorney, William Dreyer, said, "We think there are appellate issues. It was a long trial, a lot of issues that were raised and we anticipate a lengthy appeal."
Still, hundreds are without their life savings, but lawyers argue even that could've been remedied with McGinn and Smith's expertise.
Jones said, "Had they been allowed to do what they did most of their professional lives, everybody would have been made whole by now."
"I don't think there's any sentence that can undo the harm that has befallen many of these victims. In that response, there can never be closure," Hartunian said.
The judge also ordered over $6 million in forfeiture and a fine of $50,000 for Smith and $100,000 for McGinn. Their lawyers plan to appeal the decision to the second circuit court of appeals.
As for the victims, they haven't gotten a specific timeline for the restitution they may receive. Were told the U.S. Attorney's office will help the receivers to move the process along faster.