Investment adviser conflicts of interest remain a key focus of SEC scrutiny. See “SEC’s Rozenblit Discusses Operations and Priorities of the Private Funds Unit,” Hedge Fund Law Report, Vol. 8, No. 37 (Sep. 24, 2015); and “Conflicts Remain an Overarching Concern for the SEC’s Asset Management Unit,” Hedge Fund Law Report, Vol. 8, No. 10 (Mar. 12, 2015). In another example of such scrutiny, the SEC recently settled charges that a private equity fund adviser and its principals violated the anti-fraud provisions of the Investment Advisers Act by making loans to portfolio companies, causing different funds to invest in the same companies at different priority levels and violating investment concentration restrictions, in each case without disclosing those transactions to, or securing the consent of, the affected funds’ investor advisory boards. This article summarizes the alleged misconduct and violations, the adviser’s remedial efforts and the terms of the settlement. For an overview of the types of conflicts faced by private fund managers, see “RCA Panel Highlights Conflicts of Interest Affecting Fund Managers,” Hedge Fund Law Report, Vol. 8, No. 26 (Jul. 2, 2015). For conflicts arising out of allocation of expenses, see, e.g., “Specific Disclosure Before Charging Legal Expenses to Funds May Help Investment Advisers Avoid SEC Scrutiny,” Hedge Fund Law Report, Vol. 8, No. 45 (Nov. 19, 2015); and “Recommended Actions for Hedge Fund Managers in Light of SEC Enforcement Trends,” Hedge Fund Law Report, Vol. 8, No. 41 (Oct. 22, 2015).