|Financial Commentator Arrested for Fraud|
By BLOOMBERG NEWS
Published: February 8, 2005
A financial commentator who appeared on CNBC, CNN and Bloomberg Television was arrested yesterday on charges of failing to disclose that he received more than $1 million in cash and stock from a marketing company whose shares he promoted.
Courtney Smith, 53, was arrested at his Manhattan apartment after a nine-count indictment from a federal grand jury, according to the United States attorney's office in Los Angeles. Mr. Smith owns Courtney Smith & Company, a money management firm in New York.
Mr. Smith promoted the stock of GenesisIntermedia, which is now defunct, as a "very hot speculative pick" and "very cheap from my perspective" in television appearances from late 1999 to mid-2001, according to the indictment. Unknown to viewers, Mr. Smith had received $100,000 cash and company shares valued at $1.2 million, the indictment said.
The Securities and Exchange Commission also sued Mr. Smith yesterday for fraud in United States District Court in Los Angeles. The suit seeks unspecified monetary penalties.