Austin Investment Adviser’s License Revoked After $1.4M Client Fraud

The Texas State Securities Board has revoked the registrations of Smith Wealth Advisors, LLC, an Austin-based investment firm, and its owner, Ronald Dewayne Smith Jr., after finding they misappropriated more than $1.4 million from clients. View the order here.

According to the Board, the enforcement action stems from a detailed investigation that began after a routine inspection of Smith Wealth Advisors earlier this year. The findings revealed that from at least March 2017 through June 2024, Smith convinced at least ten clients to issue checks or transfer funds directly into his personal and business accounts, claiming he would invest the money according to their investment advisory contracts. Instead, investigators determined that Smith diverted those funds for personal use, business expenses, and to pay earlier investors, behavior consistent with a Ponzi-style operation.

On February 2, 2025, the Texas State Securities Board filed a formal notice of hearing against Smith and his firm, citing multiple violations of the Texas Securities Act, including misappropriation of client funds, failure to act in clients’ best interests, and fraudulent conduct in connection with investment advisory services.

A hearing before the State Office of Administrative Hearings was scheduled for September 16, 2025, but neither Smith nor his firm appeared. The Board requested a default dismissal, which was granted that same day. After the 15-day period to contest the ruling expired, the Administrative Law Judge issued a Letter of Remand confirming that the default order would stand.

On October 9, 2025, Texas Securities Commissioner Travis J. Iles signed the final order revoking both Smith and Smith Wealth Advisors’ registrations. The order also directs them to immediately cease all investment-related activities and repay the misappropriated $1,423,330.56 to clients.

The investigation was led by Financial Examiners Josh Blumenkopf and Grant McKean from the Inspections and Compliance Division, along with Attorney Nadda Rungruangphol from the Legal and Investigations Division.