The managing partners of a fund that invests in Broadway shows are under investigation by the Securities and Exchange Commission, which sued them failing to comply a subpoena.
(Bloomberg) — The managing partners of a fund that invests in Broadway shows are under investigation by the Securities and Exchange Commission, which sued them failing to comply a subpoena.
In a suit filed Thursday in Manhattan federal court, the SEC said that it is probing whether Curtis Wayne Cronin and John Joseph of Broadway Strategic Return Fund LP, violated federal securities laws by making misleading statements to current and potential investors about how the funds’ assets are valued and whether the firm was under investigation.
The SEC said both men have refused to produce documents and testimony requested in investigative subpoenas. The regulator said it continues its probe and has not concluded that either man or the entity has violated federal securities laws.
Broadway Strategic Return Fund said in a statement Friday that it was “deeply frustrated” that the SEC is escalating an inquiry that has repeatedly found no evidence of wrongdoing.
“The SEC’s press release contains statements that are untrue and misleading to investors,’ the fund said in the statement. “BSRF has complied with the SEC’s inquiry since it began, producing hundreds of thousands of documents.”
The fund, started in 2016, has invested in dozens of shows including “Dear Evan Hansen,” “Moulin Rouge” and “Kinky Boots,” according to its website. Cronin and Joseph are both credited as producers of 2021’s “Chicken & Biscuits,” a comedy that drew attention for closing soon after opening due to the omicron wave.
Dow Jones reported in July 2018 that the fund had more than $10 million spread over 30 shows,
According to the fund’s website, Cronin is a former Navy SEAL who previously served as managing partner of the McChrystal Group consulting firm and also founded venture capital firm Ridgeline Partners. Joseph is described as a career mathematician and commodities trader.
The case is SEC v Cronin, 22-md-248, US District Court, Southern District of New York (Manhattan).
(Updates with company comment in fourth paragraph)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
