Brenda Smith (CRD 4438518) was arrested by federal authorities and accused of running a $63 million Ponzi scheme, according to the U.S. Securities and Exchange Commission (SEC). Brenda Smith, founder of Broad Reach Capital, has been charged with one count of money laundering and two counts of wire transfer fraud according to a SEC complaint.
Broad Reach Capital, one of several investment companies based in West Conshohocken, Pennsylvania that run by Brenda Smith, who also belongs as her husband David Smith. She was not the only employee of the company however, she greatly exaggerated it to make it look very big. Smith Smith was registered with CV Brokerage from 2010 to June 2019 when she was terminated for Non-compliance with FINRA Rules 8210. Smith failed to provide documents and information as required in connection with a FINRA investigation.
Brenda Smith is said to have persuaded over 40 high net worth investors to invest more than $105 million in her hedge fund starting in 2016. They were told they would earn a return of 30 percent or more. Smith allegedly produced fake bank statements to placate investors as the fund’s assets began to shrink. In addition, Broad Reach Capital falsely told investors that it managed assets in excess of $180 million. As in many classic Ponzi schemes Smith is said to have paid old investors with new investors money.
The supposed investment system began to crumble as more investors tried to get their money back, and instead received excuses from Brenda Smith as to why she couldn’t meet her demands. Late payments and difficulties in repaying investments are other hallmarks of a Ponzi scheme. Investors are always encouraged to seek out the advice of a third part or check the FINRA record before investing.
Who should Brend Smith (CV Brokerage) Capital Investors Do?
Investors that invested with Broad Reach Capital and Brenda Smith need to contact an experienced investment fraud lawyer as soon as possible. There are several options for investors to recover losses and the best way is for investors to talk with an attorney privately to explore options.
A common way for investors to recover losses in Ponzi schemes like this is to make a claim against the firm with the Financial Industry Regulatory Authority (FINRA). They have streamline process for investors that is faster than traditional court ligation and usually involves having an attorney file paperwork.
Haselkorn and Thibaut, P.A., is offering free consultations for victims of Broad Reach Capital. We have offices in New York, Florida, Arizona, and North Carolina. Investors can call 1:800-856-3352 or email [email protected].