Three Florida investors have sued the operators of the Broad Street Global Fund, accusing them of running a billion dollar private equity vehicle in a Ponzi-like fashion and then blocking cash exits. The complaint was filed October 12, 2026, in federal court in Miami. It describes a family retirement account of nearly 2 million dollars trapped in restricted stock the investors say they never chose.
What happened
The lawsuit targets Broad Street Global Management LLC, Broadstreet Inc., and three individuals who controlled the fund. The individual defendants are chief executive David Feingold and brothers Steven Baldassarra and Joseph Baldassarra, who served as managing members. The case, Parbhoo et al. v. Feingold et al., No. 1:26-cv-27140, is pending in the U.S. District Court for the Southern District of Florida.
The complaint carries 13 counts, including fraud, breach of fiduciary duty, civil theft under Florida law, and federal securities violations. The plaintiffs are asking the court to freeze fund assets, appoint a receiver, and award compensatory and treble damages. The allegations have not been tested, and no court has ruled on the merits.
Key facts in the Broad Street complaint
According to the filing, the fund raised more than 1 billion dollars from over a thousand investors across several investment series.
| Allegation | Detail in the complaint |
|---|---|
| Money raised | More than 1 billion dollars from over 1,000 investors |
| Promised returns | 7 to 28 percent annually, depending on the series |
| Distribution source | Up to 80 percent of investor distributions came from sales of the merchant cash advance portfolio |
| Upfront fees | 30 percent of every dollar raised, totaling more than 305 million dollars |
| Personal enrichment | More than 170 million dollars taken by the three individuals |
| Cash redemptions | About 687 investors elected cash, representing about 148 million dollars |
How the fund allegedly operated
Investors were promised annual returns ranging from 7 to 28 percent depending on which series they bought. The complaint alleges those returns did not come from the underlying investments. Instead, money from the fund’s merchant cash advance portfolio paid investors across every series, regardless of what each one held. At one point, the filing says, as much as 80 percent of distributions were funded that way.
The operators are also accused of pocketing 30 percent of every dollar raised as upfront fees for five years of management services. The complaint puts that figure at more than 305 million dollars. Those fees never appeared on investor statements, according to the filing. The three individuals are separately alleged to have taken more than 170 million dollars to fund homes, yachts, an aviation company, and a private jet.
The complaint then traces an unusual exit. In March 2025, investors in the altcoin mining series were asked to convert their holdings into restricted shares of Z Squared Inc. The filing says an appraisal valued the mining machines at 660 million dollars by assuming the fleet was made up of powerful Antminer L9 units, when 84 percent were older L7 models. The company’s own financial statements later recorded the fleet at about 12.4 million dollars.
The math never balanced. In November 2025, remaining investors received a binding redemption notice with two options. They could take cash within 180 days, or accept restricted stock in Soulpower Acquisition Corp., a Cayman Islands shell company, valued at three times their capital account.
The plaintiffs chose cash. Five days before the payment deadline, the complaint alleges, the fund pulled the cash offer and moved everyone into stock that could be locked up for as long as 42 months. The filing says the fund would have needed about 2.45 billion dollars in SOUL stock to redeem all investors, while transferring only 30 percent of its infrastructure assets into the shell company.
The parallel SEC enforcement action
The complaint references a separate SEC enforcement action filed against the same defendants on January 29, 2025. That case led to the appointment of a court monitor. According to the filing, the monitor reported that from January through May 2025, about 79.7 percent of the fund’s incoming money came from liquidating the merchant cash advance portfolio.
The monitor also found that the fund’s infrastructure development projects had generated only about 300,000 dollars in realized profits through the end of 2024. The filing notes the fund’s management entity was never registered as an investment adviser with the SEC, despite controlling how investor money was deployed.
The plaintiffs say their retirement savings are locked up as a result. They allege they have been forced to keep working longer than planned and have postponed their retirement.
What Broad Street investors can do now
Investors holding positions in any Broad Street series should gather their subscription agreements, statements, and redemption paperwork now. The redemption election deadlines and the SOUL conversion terms in the November 2025 notice may affect legal options, and those dates matter. Anyone who elected cash and has not been paid should document that election carefully.
The SEC action remains the most direct regulatory channel for aggrieved investors. A civil suit like the Parbhoo case can also open the door to shared recoveries if the court appoints a receiver or orders restitution. Separately, a securities attorney can review whether arbitration clauses in the subscription documents apply.
Frequently asked questions
What is the Broad Street Global Fund lawsuit about?
Investors allege the fund’s operators paid old investors with new money, charged hidden 30 percent upfront fees, and then forced investors into restricted SPAC stock instead of honoring cash redemptions. The suit seeks damages, a receiver, and a freeze on fund assets.
Who are the defendants in the Broad Street case?
The defendants are Broad Street Global Management LLC, Broadstreet Inc., CEO David Feingold, and managing members Steven Baldassarra and Joseph Baldassarra. The complaint alleges the three individuals took more than 170 million dollars from the fund.
Can Broad Street investors recover their money?
Recovery paths include the pending SEC enforcement action, the new civil suit, and possible arbitration under the subscription agreements. Outcomes depend on what assets remain and how courts rule on the untested allegations.
How to recover your losses
Investors locked out of redemptions still have options, from receivership claims to individual arbitration. The earlier a claim is organized, the stronger an investor’s position typically is. A securities law firm can review the subscription documents and explain the strongest path.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in fraud recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
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Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
This article is for informational purposes only and does not constitute legal or investment advice. Civil complaints contain allegations that have not been proven in court.
