National investment loss lawyers KlaymanToskes reports that the Securities and Exchange Commission (“SEC”) has barred former financial advisor Paul Horton Smith Sr., who pleaded guilty to defrauding investors out of more than $24 million over nearly two decades of fraudulent misconduct.
According to the SEC, Smith, based in Moreno Valley, California, operated a Ponzi scheme from July 2000 through May 2020 through his companies, Northstar Communications, Planning Services, and eGate. Smith solicited at least 200 investors, primarily elderly and retired individuals, under the pretense of investing in annuities and real estate. Instead, Smith reportedly used these funds to pay off earlier investors and for personal expenses.
In 2020, the SEC secured a final judgment against Smith, ordering him to pay nearly $9 million in disgorgement, interest, and civil penalties. Earlier this year, Smith pleaded guilty to one count of wire fraud in connection to the Ponzi scheme, and now faces up to 20 years in federal prison, with sentencing pending. The SEC noted in its complaint that Smith’s guilty plea, while acknowledging his wrongdoing, does not diminish the harm he caused to investors, or the potential for future misconduct.
Investors who suffered losses due to Paul Horton Smith’s Ponzi scheme may be entitled to a financial recovery through FINRA arbitration. Brokers/investment advisors and their firms are responsible for providing suitable investment advice and must act in the best interest of their customers.
Further, brokerage and investment advisory firms are responsible for the supervision of all of the activities of their registered financial advisors. Investors may be entitled to a financial recovery if their firm failed to supervise the representative managing their account, and/or if their financial advisor made unsuitable investment recommendations.
If you or a loved one have suffered losses as a victim of Paul Horton Smith and/or any other investment fraud scam, contact KlaymanToskes at (888) 997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation to discuss your recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
investigations@klaymantoskes.com
www.klaymantoskes.com