NEWARK, N.J. (AP) — An investment fund manager from Philadelphia is facing charges in New Jersey stemming from an alleged $100 million securities fraud scheme.
Federal prosecutors say 59-year-old Brenda Smith was arrested Tuesday in Philadelphia and was scheduled to make her initial court appearance in Newark, New Jersey later in the day. It wasn’t known if she’s retained an attorney.
Smith faces four counts of wire fraud and a single securities fraud charge.
Prosecutors say that starting in February 2016, Smith orchestrated a scheme using her investment fund, Broad Reach Capital. They say she lied to investors about the fund’s assets and performance.
Smith allegedly collected more than $100 million in investments. But instead of investing the money as promised, prosecutors say she diverted millions for other purposes, including paying other investors.