New Jersey Financial Advisor, Maxwell B. Smith (“Smith”), was sentenced to seven years in prison for operating a $9 million Ponzi Scheme, Health Care Financial Partners. During the last 17 years, Smith was employed by:


Rickel & Associates, Inc.


Atlantic Group Securities, Inc.


JJB Hilliard


WL Lyons, Inc.


PNC Investments, and


Cantone Research, Inc.


Smith began soliciting investments in the Ponzi Scheme as early as 1992. It appears Smith created a phony prospectus and promised returns of 7.5% to 9%. Investors that were defrauded purchased bonds in amounts ranging from $25,000 to $300,000.


Under FINRA rules and regulations, Broker-Dealers have a responsibility to supervise the activities of their advisors, or they may be held liable in a FINRA arbitration for investor losses.


According to The Securities Law Firm of Menzer & Hill, P.A., it has become more and more evident over the last several years that many Broker-Dealers are failing miserably in the supervisory responsibilities, which in turn is costing innocent investors millions of dollars.