Updated 10/11/2012 05:24 PM
Investment firm founders accused of fraud back in court
The founders of an Albany based investment firm are back in court. David Smith and Timothy McGinn are accused of stealing at least $8 million from their clients. Erin Vannella has an update.
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ALBANY, N.Y. -- The founders of an Albany based investment firm are back in court. David Smith and Timothy McGinn are now facing superseding indictments with new allegations that they misused nearly $1 million worth of investor money.
Smith and McGinn have been charged with two new counts of mail fraud related to misusing investor money to pay preferred clients.
"They broadly expend the theories of criminal liability, which impacts all the other accounts and the allegations and the proof and our obligation to respond on behalf of our clients. So the next order of business here is going to seek a delay in the trial to so we can rest the superseding indictment returned on the eve of the trial. They've had nine months to do this. Thirty days before the trial, they return something completely different and new. Not fair, wrong," said E. Stewart Jones, McGinn’s attorney.
The counts, combined with previous charges, could mean 30 years in prison and more than a million dollars in fines.
Officials say the earliest possible trial date would come next month.