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They... literally... are? The SEC has charged SBF over exactly that.


IANAL but that depends on what their agreements with LPs were, doesn’t it? The managing partners have a fiduciary duty to the fund so couldn’t they be held criminally liable if they failed to do some due diligence stipulated by an LP?


Normally these things are all agreed at the time of the original commitment and the closing of the fund, so assuming there are LPs each and every one of them should have a copy of the obligations of these funds.




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