Paul Smith, of Wayne, Pennsylvania, was charged yesterday by Information with mail fraud and securities fraud, announced United States Attorney Louis D. Lappen. These charges arise from the defendant’s operation of “the Haverford Group," which the defendant promoted as a stock investment club, but which was actually a Ponzi scheme.
If convicted, Smith faces a maximum possible sentence of 40 years’ imprisonment, a three-year period of supervised release, a $5,250,000 fine, and a $300 special assessment. Full restitution of as much as $886,214 also shall be ordered.
The case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Source: U.S. Department of Justice, Federal Bureau of Investigation (FBI)
