NEW YORK (CNN/Money) - Television financial commentator and investment adviser Courtney Smith has been indicted and charged for his alleged role in a stock manipulation scheme, said the Securities and Exchange Commission Tuesday.
Smith, who has made frequent appearances on CNBC, CNN and Bloomberg TV as a financial commentator, has been charged by the SEC with violating securities fraud laws, regulators said in a statement.
According to the complaint, the head of GenesisIntermedia, Inc. secretly paid Smith approximately $1.1 million in cash and stock to tout GenesisIntermedia shares on television.
After the scheme collapsed in September 2001, shares in the now defunct public company plunged to pennies per share, leading to the bankruptcy of three brokerage firms and the largest bailout in the history of the Securities Investor Protection Corporation, said the SEC.
Representatives for Smith's advisory company, Courtney Smith & Co., Inc., could not be reached for comment.