Bradley Thomas Smeagal, Securities Fraud, MN 2023

MINNEAPOLIS, MN – Bradley Thomas Smeagal, 63, is headed to federal prison after being sentenced to 72 months for a brazen $5.1 million securities fraud scheme. Acting United States Attorney Gregory G. Brooker announced the sentence today, bringing a measure of justice to the victims who trusted Smeagal with their life savings.

Smeagal, who pleaded guilty on August 11, 2016, to two counts of securities fraud, preyed on his investment advisory clients between August 2007 and January 2013. He convinced them to invest in shadowy entities he secretly controlled, falsely promising conservative investments with guaranteed returns. The reality? He was siphoning off their money for personal use.

Court documents reveal Smeagal diverted a staggering $825,900 directly into his own bank account, masking the theft by routing funds through multiple accounts. To keep the scam afloat, he even resorted to Ponzi-style payments, using new investor money to pay off earlier victims – a classic sign of a crumbling house of cards. Smeagal’s career as a registered broker ended in May 2012 when FINRA barred him from the industry, but he continued his deceit.

The scheme unraveled after Smeagal was terminated by Wells Fargo in November 2011 for failing to disclose his financial interest in the entities receiving client investments. He then compounded his lies by *telling* clients he still worked at Wells Fargo. The FBI’s Minneapolis Field Office and the United States Postal Inspection Service led the investigation, exposing Smeagal’s elaborate web of deceit.

“The defendant stole from clients who trusted his professional investment advice,” stated Special Agent in Charge Richard T. Thornton. “The sentence handed down today sends a clear message that those who abuse their positions of trust for personal gain will be brought to justice and held accountable for their crimes.” In addition to the prison sentence, Smeagal will serve two years of supervised release and is ordered to pay $4,978,195.35 in restitution to his victims.

Assistant U.S. Attorney David M. Maria prosecuted the case. Smeagal’s case serves as a stark reminder of the devastating consequences of financial fraud and the importance of due diligence when entrusting investments to others. The Grimy Times will continue to follow this case and report on similar instances of financial malfeasance.