ALBANY, N.Y. -- Jury selection is expected to begin Monday in the trial of the two Albany based investors accused of swindling their clients out of millions of dollars.
Timothy McGinn, 63, and David Smith, 66, were indicted last year on mail and wire fraud charges, securities fraud and filing false income tax returns. Prosecutors say McGinn and Smith took $8 million of funds they were supposed to be investing and covered it up in their bookkeeping. The two men later pleaded not guilty to the charges during an arraignment.
So what happens to the money?
"What happens in cases like this is just like the Madoff case, there is someone appointed to receive or over see any funds that are collected and then make a decision as to how to distribute those funds. Now usually investors won't get all of their money back and in some situations, they get very little back. It's hard to know right now what if any of these funds will be available should there be a conviction," legal expert Paul DerOhannesian said.
The most serious charges against them carry a 30 year prison sentence and a million dollar fine.