A recently filed SEC enforcement action – along with a criminal indictment based on the same facts – demonstrates the continued focus of regulators and prosecutors on undisclosed preferential treatment of certain hedge fund investors. See, e.g., “SEC Charges Philip A. Falcone, Harbinger Capital Partners and Related Entities and Individuals with Misappropriation of Client Assets, Granting of Preferential Redemptions and Market Manipulation,” Hedge Fund Law Report, Vol. 5, No. 26 (Jun. 28, 2012).