Quantcast

PENNSYLVANIA RECORD

Thursday, March 28, 2024

Canadian investment company claims Philadelphia woman who controlled hedge fund caused $46 million loss

Federal Court
Invest

PITTSBURGH – A Canadian investment company is claiming a Philadelphia woman and others who controlled a liquid hedge fund caused it to lose more than $46 million through a securities fraud scheme.

According to the Sep. 6 filing in the U.S. District Court for the Eastern District of Pennsylvania, Surefire Dividend Capture LP filed a suit against Brenda Smith, who controlled the Broad Reach Capital (BRC) fund; Renato Escobar Iregui; Bristol Advisors LLC; CV Brokerage Inc.; CV International Investments LTD; CV  Investments LLC; Investment Consulting LLC; William Thomas McCormack; Anthony Scott Kopenheffer; Sanville & Co.; and The Nottingham Group, claiming Securities Exchange Act and Pennsylvania Securities Act violations, fraud, negligent misrepresentation, conversion and breach of fiduciary duty. 

"Based on information uncovered to date, it is apparent that defendants did not invest plaintiff's funds into publicly traded equities and options as represented, or in any investment intended to benefit plaintiff, but instead used the funds to pay earlier investors and divert monies to entities controlled by Ms. Smith and other places yet unknown," Surefire states in its complaint. 

Surefire alleges in its suit that Smith and the other defendants created "fictitious account statements of investment holdings and returns." Smith also faces federal charges for securities and wire fraud in connection with BRC, according to the suit. 

"Surefire has uncovered a massive securities fraud whereby Ms. Smith and her defendant compatriots induced Surefire and its predecessor to invest in the fund based on false and misleading representations, including the Fund's strategy, holdings and active oversight," the suit states.

Surefire seeks $46.5 million in damages as well as prejudgment and post judgment interest and attorney's fees and costs. 

Surefire is represented by David Smith, Ira Richards and Daniel Lawn of Schnader Harrison Segal & Lewis LLP in Philadelphia.

U.S. District Court for the Eastern District of Pennsylvania case number 2:19-cv-04088

More News