Posted at: 08/07/2013 12:45 PM
| Updated at: 08/07/2013 5:58 PM
By: WNYT Staff / Bill Lambdin
Timothy McGinn and David Smith
File / WNYT
UTICA - Former brokers Timothy McGinn and David Smith have both been sentenced in federal court.
McGinn was ordered to serve 15 years, and his business partner, Smith was ordered to serve 10 years.
Both men are accused of stealing millions from their clients.
McGinn and Smith were both taken into custody immediately after their sentencing to begin serving their term.
Smith’s daughter starting crying loudly in the courtroom.
He was allowed to hug her, his wife and son before he was led out of court.
The judge said Smith didn't do anything when he found out what McGinn was doing, saying "If you stepped in you wouldn't be here today."
McGinn stood before a sentencing judge with about 10 of his 841 known victims.
McGinn says he regrets enormously that there were any losses.
“In our business, nobody bats a thousand,” he told the court.
Four victims delivered impact statements, talking about how they lost large nest eggs on investments they thought were safe.
Wheelchair bound attorney Arthur Spring said he had hoped to retire this year, but will now have to work indefinitely.
McGinn’s attorney, E. Stewart Jones, talked about the unprecedented financial failures around 2008 and the government’s role in helping big firms, but not small firms like McGinn Smith.
The lead prosecutor said the defendant committed massive fraud over a decade and that no one would be there if this was a routine business failure.
The judge called McGinn "arrogant."
He reduced McGinn’s sentence slightly, giving him 15 years in prison and ordering restitution and fines of $6.3 million.
McGinn’s attorney says he will appeal.