SEC suing private equity firm in SC for allegedly scamming investors out of $1 billion

The Securities and Exchange Commission has sued a Greenville private equity fund that it alleges raised $1 billion from more than 1,000 investors around the world by making false statements and engaging in deceptive schemes.

Broad Street Global Management is named in the lawsuit as are executives David Feingold, who lives in Florida, and brothers Joseph and Steven Baldassarra of Simpsonville.

The SEC seeks to freeze the assets of the company and appoint a receiver.

Lorne E. Berkeley, a lawyer representing Broad Street, said in a statement, his clients sued the SEC more than six months ago in Texas.

“There were many rulings against the SEC,” he said. “The government does not take kindly to being sued. Of course they are going to react aggressively and sue back.”

He said no investor has complained about the company and the company has never missed a payment to investors.

“Broadstreet is strong as one of the largest private equity developers in the USA and when it has its opportunity to file its position in court next week, I think people are going to be shocked and disappointed with this government agency,” he said. “I really think people are now going to understand why this new president desires to make so many changes.”

Broad Street Management funds real estate infrastructure, merchant cash advances, custom home building and hotel projects, the lawsuit says.

The lawsuit also alleges the Baldassarras transferred approximately $880 million to BSG Management.

“From these funds, Feingold and the Baldassarras have transferred approximately $170 million to the Baldassarras and to entities under the control of Feingold or the Baldassarras,” the lawsuit says.

Feingold is the chief executive officer, Joseph Baldassarra, managing member of BSG Management, the president of BSI, and Steven Baldassarra, managing member of BSG Management and the chief operating officer, the lawsuit says.

Broad Street Global Management was formed in 2018 while Broad Street Inc. is a Delaware corporation formed in 2022. The three hold equal shares in the company, the lawsuit says.

The lawsuit alleges Josephbenjamin, Inc. owned by Joseph Baldassarra received more than $65 million of “illicit proceeds” while Just a Nice Day, Inc. owned by Steven Baldassarra received more than $50 million.