The U.S. Securities and Exchange Commission (SEC) has officially concluded its proceedings involving Fenway Partners, LLC, and its executives, after they failed to disclose conflicts of interest and made material omissions to investors in the Fenway Partners Capital Fund III, L.P. The Commission’s findings, issued on November 3, 2015, led to several violations of the Investment Advisers Act of 1940, for which the company and its executives were held accountable.

Fenway Partners and its key figures—Peter Lamm, William Gregory Smart, Timothy Mayhew, Jr., and Walter Wiacek—were found guilty of not disclosing certain conflicts of interest regarding payments to Fenway’s affiliates, which directly impacted investors. The SEC imposed significant financial penalties, including $7.89 million in disgorgement and $824,471 in prejudgment interest, in addition to civil penalties amounting to $1.53 million.

As a result, the SEC established a Fair Fund to distribute the collected penalties and disgorgement to affected investors. The Respondents were tasked with administering the fund, issuing 61 checks amounting to $10.24 million, which were successfully disbursed to the investors. Distribution amounts ranged from $760 to $1.2 million, and no funds remain in the Fair Fund.

With the fund now depleted, the SEC has officially terminated the Fair Fund and ordered that any future returned funds, which are not feasible to distribute, be transferred to the U.S. Department of the Treasury. The SEC’s final accounting of the fund has been approved, marking the close of the case.

The Commission’s decision underscores its commitment to protecting investors and ensuring that financial institutions adhere to strict disclosure standards.