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New Jersey Federal Wire Fraud Charges against Financial Advisor

By Lependorf & Silverstein

A Fair Haven financial adviser is facing charges for federal wire fraud in New Jersey for allegedly cheating his clients out of more than $7 million according to this report. Prosecutors investigating the case claim that Maxwell Smith promised his investors returns of up to 9 percent on investments in health care facilities. They claim that Smith deposited investors? funds into his own bank account instead of investing them and used some of the funds to pay interest to his clients. A New Jersey judge recently froze Smith?s assets after a lawsuit was filed by a Hanover man who claimed he had lost $9 million in the alleged investment scheme. Smith remains free after posting a $1 million bail, but faces up to 20 years in a New Jersey state prison if convicted on the wire fraud charges...continue to full post

Full post as published by New Jersey Criminal Defense Blog on June 02, 2009 (boomark / email).