Hedge Fund Manager Cops To $100M Securities Fraud

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By Jeannie O’Sullivan (September 9, 2021, 5:28 PM EDT) — A hedge fund manager on Thursday copped to running a $100 million securities fraud scheme that bilked money out of 40 investors who were misled about the fund’s performance and how their investments were being spent, New Jersey’s top federal prosecutor announced.

Brenda Smith, 61, who managed and controlled Broad Reach Capital LP, tendered her guilty plea during a videoconference hearing before U.S. District Judge Madeline Cox Arleo, according to acting U.S. Attorney Rachael A. Honig.

The Philadelphia resident faces up to 20 years in prison and a fine of up to $5 million, the maximum penalties for securities fraud. Sentencing…