The order by an administrative law judge barring Bradley T. Smith, the former president of Bancshareholders of America Inc., from the investment adviser and broker-dealer industries has been affirmed by the SEC.
Since 2005, Smith has been under a federal court injunction related to private security offerings made by five of his companies. The injunction was imposed by the U.S. District Court for the Southern District of Ohio in connection to a case where the SEC has accused Smith of making false representations to investors regarding his use of offering proceeds to pay for personal and business expenses.
The court had also fined him $120,000 and held Smith severally and jointly liable with Scioto National Bank and Continental Midwest Financial Incorporated-there are aggregate disgorgement and prejudgment interests of more than $2 million. The ALJ judge then barred Smith from the industries in 2006.
The SEC says that Smith has argued that imposing the bar was not in the public’s interest and could negatively affect existing BSA shareholders. He said that BSA could collapse as a result.
The SEC, however, says that BSA can find another broker-dealer or investment adviser other than Smith so that the bar would not hurt the shareholders-or, the same shareholders could move their assets to another firm. The SEC also says that Smith has yet to take responsibility for his alleged misbehavior.
If you are an investor who has lost money because of the misconduct of members of the securities industry, contact Shepherd Smith and Edwards right away. We are a law firm dedicated to helping investors like you, and we have a very good success record for helping our clients get their losses back. Shepherd Smith and Edwards offers a free consultation to all prospective clients.
Related Web Resources:
Read the SEC’s Opinion (PDF)
Temporary Restraining Order Issued in Federal Court Against Columbus Man and Four of His Companies, Ohio.gov, August 13, 2004