Brenda A. Smith, the CEO of the West Conshohocken-based Broad Reach Capital hedge fund, remained jailed in New Jersey on Wednesday where she was awaiting a bail hearing, authorities said.
Federal agents arrested Smith, 59, at her Rittenhouse Square apartment Tuesday and charged her with four counts of wire fraud and one count of securities fraud. Smith was being held in Cell 131 at the Essex County Jail, according to the county’s website.
The Securities and Exchange Commission said Smith allegedly orchestrated a $105 million Ponzi scheme that made $63 million of her clients’ money disappear. She allegedly spent more than $2 million of that to pay off her personal American Express credit card bills, according to court documents.
Smith held two passports, one from the United States and another issued by the Caribbean island nation of Dominica.
Smith, who is also known as Brenda Peterman, did not have an attorney as of Wednesday afternoon, said Matt Reilly, spokesperson for the U.S. Attorney’s Office in Newark. An appointed federal public defender did not return calls.