The McGinn, Smith Debacle – Over $100 Million Lost. Will the Victims Ever See Justice?

A feature article of
the Albany Times Union dated Sunday, September 18, 2011, entitled “Investors Left Adrift in Scam
Case,” portrayed the stories of a number of victims of McGinn, Smith who have lost a substantial
portion of their life savings.  As indicated in this article, most of what is left of their
purported private placement investments has been seized by a court-appointed Receiver with no relief in
sight. 

Receiver William J. Brown was appointed as part of the relief sought by the
Securities and Exchange Commission in its lawsuit seeking to shut down the operations of McGinn, Smith
and its principals, Timothy M. McGinn and David L. Smith, given a total principal invested of $136
Million and marshaled assets of $8 million.  However, it does not appear that the Receivership
process and any associated claims and administration process will afford investors more than pennies on
the dollar.  Separate proceedings for recovery pursuant to the Securities Investor Protection
Corporation (SIPC) are anticipated.

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