Paul Wescoe Smith of Wayne Pennsylvania a stockbroker formerly registered with Bolton Global Capital is the subject of a customer initiated investment related FINRA securities arbitration claim which was settled for $85,000.00 in damages founded on accusations of the customer’s assets being misappropriated in regard to a fraudulent enterprise known as Haverford Group. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-03239 (Dec. 1, 2020).
FINRA Public Disclosure shows that Smith has been identified in sixteen more customer initiated investment related disputes regarding accusations of his misconduct while employed by Delta Equity Services Corporation, Janney Montgomery Scott LLC and Bolton Global Capital. On July 17, 2018, a customer initiated investment related complaint concerning Smith’s conduct was settled for $30,000.00 in damages supported by allegations of fraud relating to an investment group arranged by Smith through a private securities transaction.
Smith is also the subject of a customer initiated investment related FINRA securities arbitration claim which was resolved for $117,500.00 in damages founded on accusations of the customer being misled into investing in Haverford Group based on the belief that it was an approved investment through Bolton Global Capital. FINRA Arbitration No. 18-00075 (Aug. 1, 2018). The claim alleges that the customer’s money went towards a fraudulent investment club. Another customer initiated investment related FINRA securities arbitration claim involving Smith’s activities was settled for $18,750.00 in damages on December 11, 2018 based upon allegations of a sham Haverford Group investment that the customer purchased in 2016 when Smith was associated with Bolton Global Capital.
Smith has also been barred by Securities and Exchange Commission (SEC) from being a stockbroker and investment adviser representative or associating with securities broker dealers or investment advisories. In the Matter of Paul Wescoe Smith Disciplinary Proceeding No. 3-18470 (May 7, 2018). According to the Order, a judgement SEC obtained against Smith permanently enjoined him from violating Securities Exchange Act of 1934 Section 10(b), Securities Act of 1933 Section 17(a) and Investment Advisers Act of 1940.
According to SEC, between 1991 and October of 2016, $2,350,000.00 had been received by Smith from at least thirty investors who believed that their money was going towards The Haverford Group which was a partnership formed to be a pooled investment vehicle. There were allegedly no more than a few investments made by Smith though. Money was mainly used for paying off prior investors and for Smith’s own use according to SEC. Smith’s PNC debit card shows numerous liquor store purchases and cash withdrawals at or near the Valley Forge gambling casino.
By the time of SEC’s bar, Smith was charged with fraud by United States Attorney’s Office of Eastern District of Pennsylvania. Criminal Matter No. 17-cr-626. This was based on the same issues covered in the SEC’s Complaint. On May 4, 2018, Smith pled guilty to one count of mail fraud and one count of securities fraud. He was sentenced to 63 months in prison.
Smith has also been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on allegations that he failed to provide information and documents to the regulator when investigated for private securities transactions. Letter of Acceptance Waiver and Consent No. 2017053266401 (June 7, 2017). According to the AWC, Smith’s lawyer relayed to FINRA that Smith would not respond to requests in the investigation. Smith violated FINRA Rules 2010 and 8210.
Smith was associated with Bolton Global Capital between May 8, 2007 and February 14, 2017.
