Securities Investigation: Broadway Strategic Return Fund LP
According to an SEC litigation release, on September 1, 2022, the Securities and Exchange Commission reportedly announced that it has filed an action against two Managing Partners of Broadway Strategic Return Fund, LP, a fund that invests in securities related to theatrical productions, allegedly seeking an order directing them to comply with investigative subpoenas for testimony and documents.
The SEC is reportedly investigating whether the two partners violated the federal securities laws by, among other things, allegedly making materially misleading statements to existing or prospective investors concerning the valuation of the Fund assets. The SEC is also investigating whether the partners allegedly falsely represented in due diligence questionnaires to investors that there have not been any investigations of the Fund or the Fund’s general partner, according to the news release.
The SEC staff reportedly served both partners with investigative subpoenas requiring the production of certain documents and compelling their testimony. But despite numerous attempts to secure compliance with the subpoenas, the partners have allegedly refused to produce documents and reportedly failed to comply with the testimonial obligations.
It is important to note that the SEC is continuing its fact-finding investigation and, to date, has reportedly not concluded that any individual or entity has violated the federal securities laws.
According to a Reg D filing, Broadway Strategic Return Fund, LP reportedly raised capital from investors through a pooled investment fund in 2016. The total offering amount sold to investors was purportedly $81,600,000.
Brokerage firms have two main duties in recommending investments. First, brokerage firms are required to perform adequate due diligence on any product they recommend. Second, brokerage firms are required to ensure that all recommendations made are suitable for their client in light of the client’s age, investment experience, net worth, income, and investment objectives.
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. ?It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.
If you are concerned about your investment in Broadway Strategic Return Fund, LP please call The White Law Group at 888-637-5510 for a free consultation with a securities attorney.
This information is publicly available and provided to you by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information on the firm, visit www.WhiteSecuritiesLaw.com.
Tags: Broadway Strategic Return Fund LP complaints, Broadway Strategic Return Fund LP investigation, Broadway Strategic Return Fund LP lawsuit, Broadway Strategic Return Fund LP recovery options, Broadway Strategic Return Fund LP SEC Last modified: December 6, 2022