Brian Smith of Infinity Capital Group swindled more than $100,000 from a UP investor

FOR IMMEDIATE RELEASE
July 16, 2010
Contact: Jason Moon 517-335-1700
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LANSING – The Office of Financial and Insurance Regulation (OFIR) has taken action against Brian Smith of Hazelhurst, WI regarding an investment scheme that preyed on a Michigan investor from the Upper Peninsula. OFIR found that Smith, through his company Infinity Capital Group, LLC (ICG), violated the state’s Uniform Securities Act and the agency ordered him to cease and desist from the sale of unregistered securities products. OFIR determined Smith, ICG and their investment products were not properly registered with the state.  

"Brian Smith took $100,000 from a Michigan investor’s retirement savings and used it on personal expenses and to play on the stock market,” OFIR Commissioner Ken Ross said. "If consumers think they may be a victim of Smith’s scheme, they are asked to contact OFIR immediately.”

Before entering into an investment, Michigan consumers are encouraged to contact OFIR and the agency can run a check on any investment firm, professional or product. OFIR can be reached at (877) 999-6442 or online at: www.michigan.gov/ofir.

Subpoenaed bank records show that in 2001, Smith induced a Michigan investor to transfer more than $100,000 from a 401k account into Smith’s fraudulent hedge fund at ICG. Smith used more than $40,000 of the investor’s funds for personal and business expenses. Smith took the rest of the investor’s money and lost it in stock market day trading. 

The investor received no financial statements, risk disclosures or other disclosures that would have been material to a reasonable investor before investing.

Smith was previously registered with OFIR as a broker dealer, but has not been registered since 2000.

Violations of the cease and desist order may subject Smith to a criminal penalty of not more than $25,000 for each violation, or imprisonment of not more than 10 years, or both.

OFIR handed the results of its investigation over to the Ontonagon County Prosecutor’s Office and Smith was convicted.

To view OFIR’s cease and desist order against Smith, visit: http://www.michigan.gov/documents/dleg/Infinity_Capital_C__D_328015_7.pdf

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