NJ Financial Adviser Sentenced For Investment Fraud
A New Jersey-based financial adviser who operated a scheme that defrauded investors out of $9.8 million has been sentenced to 15 years in prison.
Acting State Attorney General John Hoffman says Maxwell Smith III must serve five years of the sentence imposed Monday before he becomes eligible for parole. He also must pay nearly $7.9 million in restitution.
The 73-year-old Fair Haven resident pleaded guilty in November 2009 to money laundering. His state prison sentence will run concurrently with a seven-year federal prison term he received last month for mail fraud.
Authorities say Smith created a sham investment fund, promising his mostly elderly clients tax-free returns of up to 9 percent annually. But instead of investing the funds, Smith used the money for personal expenses, including gambling and international travel.
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