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.