I'm not sure what's going on here, but we can dig a little deeper.
Please upload the entire block from the log file where the error occurs. We should get more context as to what the root cause may be.
The SMApiWrappedException would seem to indicate that the error actually resides in SIteMInder. Do you have IM and SM integrated? We should also look in the SMPS.log of the policy server that IM is integrated with at the same timestamp as the SMAPIWrappedException for further details.
W.