A former Albany securities broker on Wednesday was sentenced to 15 years in prison and his partner 10 years for operating what federal prosecutors said was one of the largest securities frauds ever in the Northern District. Timothy McGinn, 65, received the stiffer punishment Wednesday from U.S. Judge David Hurd (See Profile) in Utica, while David Smith, 68, got the lower sentence. The two were also ordered by Hurd to pay $5.7 million in restitution and other costs.
Hurd told the defendants during their separate sentencings that he considered McGinn "arrogant" and that Smith was guilty of "going along" with McGinn's scheme. The pair were convicted on Feb. 6 of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, securities fraud and filing false tax returns while they were principals in the Albany brokerage firm of McGinn, Smith & Co. (NYLJ, Feb. 11).
