Broadstreet Bid to Block SEC Action Tossed in Texas Court (1)

Broadstreet Inc. lost its bid to halt an SEC probe into potential fraud and a concurrent enforcement action after a Texas federal judge dismissed the private equity firm’s suit against the agency.

The Securities and Exchange Commission filed its own suit against Broadstreet and top executives in late January, alleging that the company raised more than $1 billion from over 1,000 investors using deceptive tactics and false statements about its Global Fund.

The SEC’s enforcement action and its overall investigation will now proceed following a Thursday order from Judge Reed O’Connor in the US District Court for the Northern District ...