Disgraced broker Timothy McGinn was sentenced to 15 years in federal prison this morning in U.S. District Court.
Judge David Hurd cited McGinn's arrogance" as what caused the downfall of his business and ultimately his conviction.
"You ran your business and you really didn't care about the rules as long as you provided for yourself and your preferred clients," he said before meting out his sentence.
McGinn was also ordered $5.9 million in restitution, including $274,000 to the U.S. Internal Revenue Service.
McGinn, 65, was found guilty of conspiracy to commit mail fraud, guilty of conspiracy to commit mail and wire fraudulent, wire fraud, securities fraud and filing a false tax return -- 27 counts in all --following a 5-week trial ending in February.
His longtime business partner David Smith was found guilty on 15 counts, including many of the same charges. He faces sentencing later this afternoon.
In April 2010, the Financial Industry Regulatory Authority filed a civil complaint accusing Tim McGinn and David L. Smith of selling tens of millions of dollars in unregistered debt offerings and trusts. The same day, the U.S. Securities and Exchange Commission obtained a court order freezing the firm's assets, alleging the partners funneled $136 million raised from roughly 900 investors into their own financially troubled or bankrupt pursuits and for their personal activities.
Speaking in court at the sentencing today was Johnstown attorney Arthur Spring, who said McGinn lost his retirement savings and money for his daughter's wedding. Spring said he has been victimized twice in his life: By a friend who caused the car crash that paralyzed him from the chest down and by McGinn's brokerage.
Another victim in Utica was Robert Pugliese, who said McGinn lost investments that he was using for his sons, who were veterans wounded in Bosnia and Afghanistan. "This money we put aside to help them and their families," Pugliese told the judge. "Our lives have changed."
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