But even if Rothenberg is a bad fund manager, there’s a difference between being a bad fund manager because you have no talent for it, and being a bad fund manager because you are actively mismanaging the fund by not fulfilling basic fiduciary duties to investors. It still seems unclear which scenario was the case here.
Why Did Rothenberg Ventures Go Astray?
Elizabeth Spiers
1158

You’re being very generous here. There’s also a difference between being a “bad fund manager” and potentially fraudulent activity warranting an SEC inquiry:

http://www.businessinsider.com/fbi-us-attorney-could-look-at-rothenberg-ventures-source-says-2016-9

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