The SEC recently entered a settlement order against an investment adviser and its principal for their failures to properly calculate fees and expense reimbursements as disclosed in their fund documents and SEC filings, and to make adequate disclosure regarding related-party-transaction conflicts of interest, resulting in over $2 million in fines, disgorgement and interest. The action is a critical reminder to fund managers of the importance of ensuring that fees and expenses are calculated precisely in accordance with disclosed methodologies; the significance of fully disclosing all conflicts of interest; and the SEC’s continued attention to these areas. This article summarizes the SEC’s findings and the terms of the settlement order. For more on SEC scrutiny of these issues, see “Eight Bad Excuses Fund Managers Have Raised Trying to Avoid SEC Sanctions for Fee and Expense Allocation Violations and Undisclosed Conflicts of Interest” (Oct. 13, 2016).