Were You a Victim of Financial Advisor Paul Smith and The Haverford Group Ponzi Scheme?
Posted on Saturday, January 20th, 2018 at 10:08 am
Erez Law is currently investigating former Bolton Global Capital financial advisor Paul Smith (CRD# 1070735) regarding The Haverford Group, a partnership that Smith formed to serve as a pooled investment vehicle that operated in a Ponzi-like manner. Smith was registered with Bolton Global Capital in Wayne, Pennsylvania from 2007 to 2017, when he was terminated regarding, “SEC notified bolton global capital that Mr. Smith had engaged in a private securities transaction without first notifying the firm.”
In December 2017, the Securities and Exchange Commission (SEC) opened an investigation into Smith alleging that he deceived and defrauded investors for nearly 25 years, between February 1991 and October 2016. The SEC complaint alleges that Smith raised approximately $2.35 million from approximately 30 investors by representing that he would invest their money in publicly traded securities through The Haverford Group, a partnership that Smith formed to serve as a pooled investment vehicle.
Many of Smith’s brokerage customers were retire or elderly clients. The SEC alleges that Smith convinced them to invest in The Haverford Group, knowing the investment was not legitimate and that he would not use all of their money to purchase securities on their behalf as promised, and instead would use most of their money to repay other investors and for his own personal use.
To conceal his scheme, the SEC alleges that Smith fabricated phony account statements that reflected fictitious account balances and gains, kept his and The Haverford Group’s activities and accounts hidden from his employers, and used money from investors to repay others, so as to avoid suspicion.
In June 2017, Smith was barred by FINRA after he consented to the sanctions and to the entry of findings that he failed to provide documents and information requested by FINRA related to him conducting a private securities transaction without notifying Bolton Global Capital.
Smith has been the subject of 12 customer complaints between 1985 and 2017, one of which was withdrawn and one was closed without action, according to his CRD report. Recent cases include:
September 2017. “Sold the client fictitious investments and converted customer funds for his own personal use and benefit.” The customer is seeking $62,582 in damages and the case is currently pending.
July 2017. “January 2016 – February 2017. Client invested in the Haverford Group. Unbeknownst to the client the haverford group was a fraud.” The customer is seeking $25,000 in damages and the case is currently pending.
June 2017. “September 2013 – September 2016. Client invested in the haverford croup. The haverford group turned out ot be a fraud. The are looking to be made whole on their investments.” The customer is seeking $108,769.54 in damages and the case is currently pending.
June 2017. “June 2011 – November 2016. Client invested in the haverford group. Unbeknownst to the client the haverford group was a fraud.” The customer is seeking $43,352.56 in damages and the case is currently pending.
June 2017. “February 2015 – March 2017. Client invested in the haverford group. Unbeknownst to the claimant the haverford group was a fraud. Seeking for his investment to be returned.” The customer is seeking $21,000 in damages and the case is currently pending.
May 2017. “February 2009 to November 2016.Client invested in the Haverford Group. Unbeknownst to the client the group was a fraudulent unregistered security. Client trusted Mr. Smith..” The customer is seeking $78,024 in damages and the case is currently pending.
April 2017. “Based on his Mother’s relationship with Mr. Smith and Bolton Global [Customer Name] met with the Registered Representative on 3/12/2012. He gave him a check for $130,000.00. In April 2017 when he requested a disbursement of his money , he was advised to contact Mr. Smith’s attorney.” The customer is seeking $130,000 in damages and the case is currently pending.
April 2017. “APRIL 2011 – FEBRUARY 2017. Representative liquidated securities in the account held at Bolton Global to invest in a fund/investment club that was not approved by Bolton Global.” The customer is seeking $105,000 in damages and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Bolton Global Capital may be liable for investment or other losses suffered by Smith’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.