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Former Pine Bluff man's federal sentence for securities fraud upheld Wednesday, May 7, 2008 Arkansas News Bureau LITTLE ROCK - The 8th U.S. Circuit Court of Appeals on Tuesday upheld a former Pine Bluff man's nine-year prison sentence and $15.9 million restitution order for securities fraud and performing the services of a broker without a license. Gary Marcus Smith, who moved to Springfield, Mo., pleaded guilty to the charges in federal court in 2006. He appealed his sentence on grounds it was unreasonable, arguing his prison time should have been less because of the large amount he was ordered to pay in restitution. The federal appeals court affirmed U.S. District Judge Susan Webber Wright ruling, saying Wright not abuse her discretion when she declined to consider federal guidelines which would have allowed her to reduce the prison sentence because of the extraordinary high restitution. The court said her sentence was not unreasonable. The Arkansas Securities Department reported Smith to the FBI after discovering he was acting as a securities broker without a license. The department alleged Smith was falsely reporting to clients of his two Pine Bluff businesses, TAL Capital Management and TAL Group, that their investments were generating annual returns of 20 percent to 80 percent. Authorities said Smith's trading losses exceeded $3 million. Over a period of five years, Smith received about $20 million from about 100 investors, a majority of whom were Arkansas residents. He used most of the money for his personal benefit, according to the FBI. On Dec. 17, 2005, agents seized about $6.6 million in cash from Smith's bank and brokerage accounts. Under the terms of his plea agreement, he forfeited real estate, vehicles and other assets. |
