An investment fund manager from Philadelphia has admitted orchestrating a $100 million securities fraud scheme, federal prosecutors in New Jersey announced Thursday.
Brenda Smith, 61, faces up to 20 years in prison and a $5 million fine when she is sentenced Jan. 20. She pleaded guilty to a securities fraud count.
Prosecutors said Smith operated the scheme from February 2016 through August 2019, using her investment fund, Broad Reach Capital. They say she lied to investors about the fund’s assets and performance.
Smith collected more than $100 million in investments, prosecutors said, but instead of investing the money as promised, she diverted millions for other purposes, including paying other investors.
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Copyright AP - Associated Press
