This website is maintained by the Federally Appointed Equity Receiver in the matter of SEC v. Smith, et al., Civ. No. 2:19-cv-17213-MCA (D.N.J.). This website will be updated with important information concerning the receivership, including case filings, status reports and information for investors and creditors. Please check back for updates.
IMPORTANT NOTICE TO ALL INVESTORS AND TRADE CREDITORS – CLAIMS PROCEDURE AND CLAIMS BAR DATE OF 4/25/2022
On February 22, 2022, the United States District Court for the District of New Jersey entered an Order Establishing Claims Procedure and Setting Claims Bar Date (ECF No. 168). A copy of the Order may be downloaded here. An important Notice of Receivership Claims Procedure may be downloaded here. Please be advised that if you do not submit a claim by the claims bar date of April 25, 2022, you will be barred from asserting a claim against the Receivership.
SEC ENFORCEMENT ACTION
On August 27, 2019, the SEC filed a complaint alleging that Brenda Smith and her fund Broad Reach Capital, LP raised approximately $105 million from approximately 40 investors based on false representations that she would invest their money in publicly traded securities through various trading strategies that she championed as providing consistently high returns. A copy of the complaint may be downloaded here. According to the complaint, Smith and her entities made false statements to investors concerning supposed positive returns their investments were generating. In addition, the complaint states that Smith and the entities she controlled provided investors fabricated documents that inflated Broad Reach's assets. As alleged, however, Smith largely used investors' money to repay other investors and for her own personal investments. The SEC obtained an emergency asset freeze at the time it filed the complaint and later obtained a preliminary injunction extending the freeze, which remains in effect except as otherwise specified in the June 29, 2020 Receivership Order. A copy of the preliminary injunction may be downloaded here.
On June 29, 2020 the Honorable Madeline Cox Arleo of the United States District Court for the District of New Jersey entered an order appointing Kevin Dooley Kent, Esquire of Conrad O’Brien PC as Receiver over the assets of defendant Brenda Smith and certain entities she controlled, including defendants Broad Reach Capital, LP, Broad Reach Partners, LLC, and Bristol Advisors, LLC. A copy of the Court’s June 29, 2020 Order may be downloaded here.
CRIMINAL ACTION
On August 22, 2019, the United States filed a criminal complaint against Brenda Smith in the matter United States v. Smith, No. 2:20-cr-00475-MCA. Brenda Smith pled guilty to Count Seven of the Criminal Indictment on September 9, 2021, for committing securities fraud in violation of 15 U.S.C. § 78j(b) and 78ff and 17 C.F.R. § 240.10b-5. A copy of the Criminal Indictment may be downloaded here. A copy of Ms. Smith’s plea agreement may be downloaded here. A copy of the minutes of proceedings regarding Ms. Smith’s guilty plea may be downloaded here.
IMPORTANT NOTICE TO ALL INVESTORS AND TRADE CREDITORS – CLAIMS PROCEDURE AND CLAIMS BAR DATE OF 4/25/2022
On February 22, 2022, the United States District Court for the District of New Jersey entered an Order Establishing Claims Procedure and Setting Claims Bar Date (ECF No. 168). A copy of the Order may be downloaded here. An important Notice of Receivership Claims Procedure may be downloaded here. Please be advised that if you do not submit a claim by the claims bar date of April 25, 2022, you will be barred from asserting a claim against the Receivership.
SEC ENFORCEMENT ACTION
On August 27, 2019, the SEC filed a complaint alleging that Brenda Smith and her fund Broad Reach Capital, LP raised approximately $105 million from approximately 40 investors based on false representations that she would invest their money in publicly traded securities through various trading strategies that she championed as providing consistently high returns. A copy of the complaint may be downloaded here. According to the complaint, Smith and her entities made false statements to investors concerning supposed positive returns their investments were generating. In addition, the complaint states that Smith and the entities she controlled provided investors fabricated documents that inflated Broad Reach's assets. As alleged, however, Smith largely used investors' money to repay other investors and for her own personal investments. The SEC obtained an emergency asset freeze at the time it filed the complaint and later obtained a preliminary injunction extending the freeze, which remains in effect except as otherwise specified in the June 29, 2020 Receivership Order. A copy of the preliminary injunction may be downloaded here.
On June 29, 2020 the Honorable Madeline Cox Arleo of the United States District Court for the District of New Jersey entered an order appointing Kevin Dooley Kent, Esquire of Conrad O’Brien PC as Receiver over the assets of defendant Brenda Smith and certain entities she controlled, including defendants Broad Reach Capital, LP, Broad Reach Partners, LLC, and Bristol Advisors, LLC. A copy of the Court’s June 29, 2020 Order may be downloaded here.
CRIMINAL ACTION
On August 22, 2019, the United States filed a criminal complaint against Brenda Smith in the matter United States v. Smith, No. 2:20-cr-00475-MCA. Brenda Smith pled guilty to Count Seven of the Criminal Indictment on September 9, 2021, for committing securities fraud in violation of 15 U.S.C. § 78j(b) and 78ff and 17 C.F.R. § 240.10b-5. A copy of the Criminal Indictment may be downloaded here. A copy of Ms. Smith’s plea agreement may be downloaded here. A copy of the minutes of proceedings regarding Ms. Smith’s guilty plea may be downloaded here.