UTICA, N.Y. — A federal grand jury found alarm industry investors Timothy McGinn and David Smith guilty of swindling millions of dollars from investors’ accounts through a Ponzi-type scheme on Wednesday.

Both faced a 29-count indictment that included charges of conspiracy, mail and wire fraud and filing false tax returns. The jury convicted McGinn of 27 counts and Smith of 15 counts, Times Union reports.

McGinn, 64, former CEO of Albany, N.Y.-based Integrated Alarm Services Group Inc. (IASG), and Smith, 67, were originally indicted for misleading clients of the Albany, N.Y-based McGinn, Smith & Co., a registered broker-dealer and investment firm, about the roughly $37 million the pair put into 17 trust funds. Prosecutors further accused the partners of redirecting $4.1 million from investment trusts to benefit themselves and former business partner Matthew Rogers, the Daily Gazette reports.

During the five-week trial, prosecutors argued that McGinn and Smith made up a backdated trail of loan documents to cover up fraudulent activities.

In 2010, McGinn, Smith & Co., was put into receivership. The Securities and Exchange Commission (SEC) filed a civil complaint against the duo stating they defrauded 900 investors of $136 million. In that same year, McGinn and Smith started McGinn Smith Alarm Traders. Last April, the company auctioned off more than 5,000 alarm account to Security Systems Inc. for more than $2 million.

McGinn and Smith face up to 15 years in prison and $1 million fines when they are sentenced June 28. They are expected to appeal the verdicts.

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