On September 29, 2022, the Hon. Jesse Furman, United States District Judge for the Southern District of New York, granted the Securities and Exchange Commission's application to enforce subpoenas for production of documents and testimony issued to Curtis Wayne Cronin ("Cronin") and John Joseph ("Joseph"), both Managing Partners of Broadway Strategic Return Fund, LP (the "Fund"), a fund that invests in securities related to theatrical productions.

If a person or entity refuses to comply with a subpoena issued by SEC enforcement staff pursuant to a formal order of investigation, the Commission may file a subpoena enforcement action in federal district court seeking an order compelling compliance.

According to the SEC's filing, the SEC is investigating whether Cronin and Joseph or others violated the federal securities laws by, among other things, making materially misleading statements to existing or prospective investors concerning the valuation of the Fund assets, and whether, after the SEC had begun a formal investigation of the Fund, they falsely represented in due diligence questionnaires disseminated to actual or prospective investors that there have not been any investigations of the Fund or the Fund's general partner. As stated in the filing, SEC staff served both Cronin and Joseph with investigative subpoenas requiring the production of certain documents and compelling their testimony. According to the filing, however, and despite numerous attempts to secure compliances with the subpoenas, Cronin and Joseph refused to produce documents and failed to comply with the testimonial obligations.

The SEC's application sought a court order directing Cronin and Joseph to comply fully with the subpoenas. Following a hearing on September 14, 2022, the court granted the SEC's application and ordered the respondents to produce non-privileged responsive documents to the Commission's subpoena and to appear for testimony. The Court's order also states that in the event Cronin and Joseph do not produce the documents and appear for testimony, the Court may hold them in civil contempt. The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.

The SEC's investigation is being conducted by Christopher Castano, Christopher Mele, and Steven G. Rawlings of the SEC's New York Regional Office under the supervision of Sheldon L. Pollock. Richard Primoff, Victor Suthammanont, and Mr. Castano litigated the subpoena enforcement action.