Forbes: Broadway Financing Practice May Violate Law
Posted by: Ballerina5609:49 am EST 01/11/19
“Many people are not able to control their co-producers that much … and we have had issues with people [exaggerating] their involvement in the show and the show’s [financial] prospects,” commented Barbara Whitman, who produced Fun Home on Broadway.
For instance, one co-producer inviting his friends on social media to invest in Anastasia exclaimed that “[a] number of experts thought we could beat Hamilton for the Tony, but we will enter the race the following year to increase our chances, which will lead to a longer and more successful run.”
“Although the producer likely considered his or her post an innocuous promotion, the [Commission] might read it as intending to educate prospective investors ‘as to the value of the securities involved,’ which constitutes investment advice that may trigger broker-dealer registration requirements,” Manella said.