UTICA, N.Y. -- The Securities and Exchange Commission filed civil charges against ten former brokers at a security firm whose owners are already in federal prison.
David Smith and Timothy McGinn were sentenced to state prison in August. They were convicted of swindling millions of dollars from clients.
The pair was also ordered to pay $5.7 million in restitution. McGinn was ordered to pay an additional $250,000.
According to the SEC, the brokers misrepresented troubled investments they sold to customers. They said nearly 750 investors were victimized, resulting in $80 million worth of losses.
The SEC said the civil case against the firm, and McGinn and Smith is ongoing.