Philadelphia Fund Manager Charged in Massive Fraud
Last week an investment fund manager was arrested and charged in connection with an alleged $100 million securities fraud scheme, according to the US Attorney’s office based in Newark, NJ. The fund manager, Brenda Smith of Philadelphia, PA, was charged with several counts of wire fraud and one count of securities fraud. She was arrested in Philadelphia and charged in Newark.
Broad Reach Capital, an Alleged Ponzi Scheme
According to documents filed in the case by the US Attorney’s office, from February 2016 to August 2019, Smith used her investment fund, Broad Reach Capital, to collect more than $100 million in funds from investors who believed her lies about the funds assets and performance.
Rather than invest the money as promised, Smith diverted millions of dollars belonging to investors for other purposes, including paying other investors — the classic Ponzi Scheme structure. When a few of the larger investors demanded redemption of their funds, Smith was unable to honor their requests and the scheme promptly collapsed.
Pennsylvania & New Jersey Ponzi Scheme Lawyers
If you or someone you know has been the victim of investment fraud or a Ponzi Scheme, contact our attorneys immediately for a free consultation toll-free at 215 462 3330 or by using our online contact form.
