SEC's Kaplan Details Plan To Target Private Equity

Law360, New York (January 27, 2012, 12:00 AM EST) -- A high-ranking enforcement official gave details to Law360 on Friday about how the U.S. Securities and Exchange Commission plans to target shady general partners in the private equity industry who favor friends over regular investors, refuse to liquidate languishing funds or tout fantastical returns.

Unfair payouts to investors from breakup fees, breaches of fiduciary duty by general partners who operate so-called zombie funds, and outlandish claims by investment gurus during fund formation all are on the agency's radar, according to Robert B. Kaplan, co-chief of the...
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