BILLION DOLLAR FUND FLEECED! Cash Siphoned For Personal Fortunes!

U.S. Securities and Exchange Commission Litigation Release No. 26289, dated April 21, 2025.

The SEC charged David J. Feingold and others with a multi-faceted fraud involving Broad Street Global Fund, a private equity fund that raised approximately $1 billion from over a thousand investors. Defendants allegedly diverted nearly all investor funds for personal use and paid inflated returns, misrepresented investment strategies, and commingled funds between different investment series.

In Plain English

Imagine you give money to a fund manager to invest for you. This manager promised to invest your money in specific projects, like building houses or helping small businesses. Instead, the manager took almost all the money and used it for themselves. They also lied about how much money the investments were making and mixed money from different investors together, putting everyone's money at risk.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Fund Creation and Investor Promises Defendants created the Broad Street Global Fund, LLC, a private equity fund, and offered investments through various series, including merchant cash advances, real estate, and qualified small business stock. They promised investors that each series would be kept separate, with no commingling of funds or cross-liability between them.
2. Misleading Investment Returns The defendants fraudulently claimed that investments in certain series, such as merchant cash advances, generated significant profits. They allegedly paid inflated returns to investors in at least two major series, even when actual profits did not support these claims.
3. Diversion of Investor Funds Instead of investing investor funds as promised, 'nearly all' of the approximately $1 billion raised from over a thousand investors was allegedly diverted to accounts and assets owned and controlled by Broad Street Global Management, the Baldassarras, or Broad Street Inc.
4. Commingling of Funds Contrary to promises of segregation, the Baldassarras and Broad Street Global Management allegedly commingled investor monies across different series. This created cross-liability, exposing investors to risks in series they did not invest in.
5. False Promises on Tax-Free Returns In a series related to qualified small business stock, defendants allegedly promised investors tax-free returns. However, the funds were not invested as promised, indicating a fraudulent misrepresentation about the nature and outcome of the investment.
6. Personal Enrichment Collectively, David J. Feingold and the Baldassarras are alleged to have taken tens of millions of dollars from the Fund for their personal benefit.

The Enforcement Action

On April 21, 2025, the U.S. District Court for the Southern District of Florida appointed an agreed-upon monitor in the SEC’s ongoing litigation against David J. Feingold, Steven S. Baldassarra, Joseph B. Baldassarra, Broad Street Inc., and Broad Street Global Management, LLC. The SEC charged the defendants with a multi-faceted fraud involving Broad Street Global Fund, LLC and its investors. The monitor is tasked with evaluating the conduct of Broad Street Inc., Broad Street Global Management, the Fund, and other related corporate entities. The order also continues a previous stipulated order preventing defendants from soliciting new investors or accepting additional investments for the Fund. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against all defendants. The SEC’s Complaint, filed on January 29, 2025, remains largely under seal. The SEC has moved to unseal the Complaint and other documents.

Original SEC litigation release ↗ · Browse all cases