Phoenix, Ariz. -  The Arizona Corporation Commission ordered respondents William Andrew Smith of Tucson and Smith & Cox, LLC to pay a $60,000 administrative penalty for committing securities fraud and investment advisory fraud.

The Commission found Smith and his firm breached their fiduciary duty to their clients by misleading them as to the reasons for transitioning to another financial firm.  Smith and his affiliated company failed to disclose the Commission’s pending enforcement action against them and risk that they would lose their securities’ licenses.

Also, the Commission found that Smith and his affiliated company failed to disclose to their clients Smith’s multiple unpaid tax liens and prior order for securities violations. Smith's financial troubles, and the then-pending Commission enforcement action against him and his company, raised questions regarding the risks associated with investing with respondents. The Commission found that Smith and his company violated their duty to disclose these issues to their clients, most of whom were senior citizens and retirees.

The Commission previously revoked Smith and Smith & Cox’s securities licenses.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21104A-20-0103.