The SEC charged private fund manager, Dolphin Associates III, LLC, and its principal, Donald T. Netter with improperly withholding withdrawals from a private fund that they managed, charging the fund with excessive fees, and making materially misleading statements to investors. The firm relied on provisions in fund governing documents to segregate and side-pocket certain investments and suspend fund redemptions based on extraordinary circumstances. However, such actions were wrongly utilized to protect the principal's economic interest based on his own personal holdings. The litigated case highlights the obligation of private fund managers to act in the best interest of the fund and fund investors and cautions them not to aggressively rely on provisions in fund governing documents designed to protect investor interests to instead protect their own personal interests.