Commissioner Issues Order Revoking the Registration of an Austin-based Investment Adviser

Earlier today, Texas Securities Commissioner Travis J. Iles entered an order revoking the registrations of Austin-based Smith Wealth Advisors, LLC and its sole owner and investment adviser representative, Ronald Dewayne Smith, Jr. (collectively, "Respondents"). You may view the order here.

After conducting a routine inspection of Smith Wealth Advisors, on February 2, 2025, the Texas State Securities Board filed a notice of hearing with the State Office of Administrative Hearings asserting, among other things, that Smith Wealth Advisors and Smith misappropriated funds from at least ten clients.

More specifically, the notice of hearing alleged that from at least March 2017 through June 2024, Smith had clients issue checks or transfer funds directly to his personal and business accounts with the clients' understanding that he would invest the funds according to the terms provided in the investment advisory contracts provided to clients. In reality, Smith used the funds to pay off other investors and for his personal and business expenses.

The hearing on the merits was set for September 16, 2025, and Respondents did not attend. Accordingly, the Board filed for a default dismissal which was granted that same day. Respondents had 15 days to file a motion to set aside the Default Order. No motion was ever filed and on October 3, 2025, the Administrative Law Judge issued a Letter of Remand advising the parties that the time period to file a motion to set aside the default order had expired and remanding the case back to the Texas State Securities Board.

The final order entered by the Securities Commissioner also orders Smith Wealth Advisors and Smith to immediately cease and desist from engaging in fraudulent business practices and to refund clients the misappropriated funds totaling $1,423,330.56.

Josh Blumenkopf and Grant McKean, Financial Examiners in the Inspections and Compliance Division, and Nadda Rungruangphol, an Attorney in the Legal and Investigations Division, led the agency's good work in the matter.