Philadelphia Woman Brenda Smith Arrested for Alleged $100 Million Securities Fraud SchemeMonday, September 9, 2019
Brenda Smith, an investment fund manager was arrested recently in connection with an alleged $100 million securities fraud scheme. Brenda Smith, 59, of Philadelphia, Pennsylvania, is charged by complaint with four counts of wire fraud and one count of securities fraud. Smith was arrested in Philadelphia and is scheduled to appear in Newark, New Jersey federal court.
From February 2016 to August 2019, Smith allegedly orchestrated a scheme using her investment fund, Broad Reach Capital, in which she lied to investors about the assets and performance of the fund and falsely stated that she would invest their funds in particular trading strategies. Smith collected more than $100 million in investments. Instead of investing the money as she promised, she diverted millions of dollars of investor funds out of Broad Reach Capital for other purposes, including paying other investors. When confronted with redemption requests by several large investors in Broad Reach Capital, Smith failed to honor the redemption requests and lied about the status of their investment and the fund.
The wire fraud counts are each punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum of 20 years in prison and a fine of $5 million.
If you invested money with Brenda Smith in her alleged scheme at the advice of a broker, accountant, attorney, or other professional, you may be able to recover your losses. Since 1998, the attorneys at ChapmanAlbin have been helping investors recover money lost due to securities fraud and negligence. Call us today for a free consultation at 1-877-410-8172.