The Securities and Exchange Commission settled charges on Tuesday with Fenway Partners LLC, principals Peter Lamm and William Gregory Smart, former principal Timothy Mayhew Jr., and chief financial officer Walter Wiacek for allegedly failing to disclose conflicts of interest to a fund client and investors when fund and portfolio company assets were used to pay former firm employees and an affiliated firm for services. More than $20 million was paid out of fund assets or portfolio companies, according to the SEC's compliant, to Mayhew and other former firm employees for services they primarily provided while still working at Fenway Partners. Fenway Partners failed to disclose these payments were related party transactions in the financial statements they provided to investors. Fenway Partners and the four executives did not admit or deny the charges but agreed to pay a total of $10.2 million in disgorgement, penalties and interest that will be put in a fund to repay harmed investors.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below