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May 4, 2022

Posted  May 4, 2022

Brenda Smith, former investment manager for Broad Reach Capital LP, pleaded guilty to seven counts of securities fraud. She will pay $47.2 million in restitution, spend 109 months in prison, and spend another 3 years thereafter under supervised release, for orchestrating a $100 million securities fraud scheme. To further her fraud, Smith provided investors with false monthly account statements, made false representations about her personal investment in the company, satisfied redemption requests by diverting other investors’ funds to pay the redemption amounts, and transferred clients’ funds to investments that were outside the scope of the promised investment strategy. NJ USAO

Tagged in: Financial and Investment Fraud, Ponzi Schemes, Securities Fraud,