The U.S. Securities and Exchange Commission (SEC) has accused private equity firm Broadstreet Inc. and its executives of raising over $1 billion from more than 1,000 investors through deceptive practices and false statements. Despite certain investments failing to yield significant profits, the company allegedly paid inflated returns to investors. Additionally, assets were reportedly transferred to accounts controlled by the company and its executives.
The SEC is seeking injunctions, disgorgement, and civil penalties against Broadstreet and its executives for the alleged fraudulent activities that began in October 2020.
