SEC Sues Broad Street Global Management Alleging It Defrauded Investors In $1B Fund
On January 29, 2025 the Securities and Exchange Commission (SEC) sued Broad Street Global Management LLC, alleging that it’s principals “used deceptive schemes and materially false statements to raise…more than $1 billion from over a thousand investors.”
The suit, filed in Florida federal court against Broad Street Global Management (BSG), Broad Street Inc (BSI), and executives Steven Baldassarra, Joseph Baldassarra, and David Feingold, seeks an asset freeze, injunctions, and the appointment of a receiver to stop the alleged ongoing offering fraud.
Broad Street Global, a South Carolina-based private equity fund, offered series investments that claimed to allow investors to profit from investments in merchant cash advance, real estate infrastructure, hotels, and other businesses. Each series was said to be its own investment with unique risks and profit potential. Investors were told that the fund would keep the assets and liabilities of each series separate and not commingle money or assets between different investments.
But according to the SEC’s complaint “funds were commingled and cross-liabilities created.”
Worse, “nearly all investor funds were diverted to accounts and assets owned and controlled by BSG Management, the Baldassarras, or BSI. BSG Management made almost no investments on behalf of the BSG Fund,” the complaint states.
BSG is also alleged to have paid inflated returns to investors in their Merchant Cash Advance series, claiming it generated remarkable profits that it did not.
In another series, Qualified Small Business Stock, Broad Street and the Baldassarras are alleged to have falsely induced investors to invest by promising to generate tax-free returns when investor funds were not invested as told and didn’t qualify for the promised tax benefits.
Broad Street Previously Sued The SEC
The SEC had been investigating Broad Street for years before filing its lawsuit. In 2024, Broad Street, Feingold, and the Baldassarras sued the SEC in Texas federal court alleging the Commission’s investigation was abusive, retaliatory, and unconstitutional.
Broad Street claimed the SEC’s investigation was beyond its authority, that BSG’s real estate projects were not authorities, and that an enforcement action by the Commission could jeopardize thousands of jobs and tens of thousands of housing units.
The SEC’s complaint was filed with many redactions, which the Commission said was due to BSG’s Texas lawsuit trying to stop their investigation.
An attorney for the defendants claimed the Commission’s Florida suit was retribution for them suing the SEC.
Did You Invest In Broad Street Global Management?
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