The SEC charged registered investment adviser, Macellum Advisors, LP, that advised a series of single-security pooled investment vehicles (the “Funds” or “Macellum Funds”) with failing to disclose payments Macellum affiliates received from third-party investment advisers and the resulting conflicts of interest. While Macellum stated in Fund formation documents and various disclosure documents that it “may” or “could” engage in outside activities and other conflicted transactions, the SEC faulted the firm for not specifically disclosing the extensive Consulting Agreements it entered into, or compensation received from the Outside Entities in connection with its activist campaigns. Due to the firm’s cooperation and prompt remedial action taken, the penalty in the case was limited to $75,000.