Advertising Executive Pleads Guilty In Fraud Conspiracy

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Gary Todd Smith (“Todd Smith”) (47, Fayetteville, North Carolina) today pleaded guilty to conspiracy to commit mail and wire fraud affecting a financial institution, and to wire fraud affecting a financial institution. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.

According to court documents, Smith ran Smith Advertising, which turned into a massive fraud scheme. Smith borrowed money from over 150 people, wherein each earlier loan was repaid from subsequent loans. Smith lied about the purpose of the loans and conspirators created fake documents to mask the scheme. The company’s real books showed that, as a result of the scheme and on the date the company ceased operations, the total assets and equity were valued at -$166,863,476.23.

This case was investigated by the Federal Bureau of Investigation and the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.