Category Archives: Cantone Research

Maxwell B. Smith Sentenced to 15 Years for Securities Fraud

In July 2013, former New Jersey broker Maxwell B. Smith III, age 73, of Fair Haven, was sentenced to 15 years after pleading guilty to first-degree money laundering. Smith operated a Ponzi scheme for 17 years, preying on elderly clients who thought they were giving Smith money to invest in health-care facilities. Instead he used the money for personal expenses, including trips to Gordes, France.

Smith told his victims that the purported investments (Health Care Financial Partnership Direct Municipal Loans ) were safe, tax free and would yield high semi-annual interest payments. In June 2013, Smith was sentenced to seven years after pleading guilty to federal mail fraud charges. The sentences will be served concurrently.

Smith was ordered to pay over $7 million in restitution to victims.

Accordimg to FINRA records, Smith worked for the following firms:

Cantone Research, Inc.
1/2005-4/2009

PNC Investments
1/2004-1/2005

J.J.B. Hilliard, W.L.Lyons, Inc.

12/1999-1/2004

If you were a victim of Smith’s fraud you may be able to recover damages.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900