Broadstreet Top Brass Raised $1 Billion in Fraud, SEC Says (1)

Private equity firm Broadstreet Inc. and its top executives raised more than $1 billion from over 1,000 investors using deceptive tactics and false statements, the SEC said.

The company paid out inflated returns from the Broadstreet Global Fund—covering real estate, hotel projects, and other specialized areas—despite certain investment lines failing to generate significant profits, according to the agency’s suit filed Wednesday in the US District Court for the Southern District of Florida.

Broadstreet filed its own suit against the Securities and Exchange Commission in August, alleging that the agency’s investigation into the firm’s real-estate development plans doesn’t fall within its ...