The Securities and Exchange Commission filed a complaint against Family Endowment Partners, LP, a registered investment adviser, and Lee D. Weiss, its owner. In general the SEC charged that FEP and Mr. Weiss engaged in material misrepresentations and omissions, and schemes to defraud. Specifically, the SEC claimed that, since 2010, the defendants have engaged in a pattern of self-dealing and have not disclosed material facts to clients regarding defendants’ use of investor funds and conflicts of interest. Among other things, the SEC charged that the defendants caused individual FEP clients and two hedge funds to invest more than US $40 million in subsidiaries of a French company that allegedly developed methods to reduce the risks of tobacco smoking. However, claimed the SEC, the defendants never disclosed that Mr. Weiss had a personal investment in the company and received payments from it. In addition, from late 2012 to 2014, defendants caused five FEP clients to invest over US $8 million in notes or shares of companies Mr. Weiss owned or controlled. The SEC said the defendants did not disclose that they intended to use the funds and used them not to benefit these companies, but to cover delinquent expenses of FEP. The SEC seeks penalties, disgorgement of profits, and an injunction to stop the defendants from violating the law. The SEC’s complaint was filed in a federal court in Massachusetts.