William L Gunlicks and his firm, Founding Partners Management, are alleged to have defrauded investors by claiming that their primary fund had loaned money to two companies - Sun Capital and Sun Capital Healthcare - to purchase primarily short-term, highly liquid account receivables that fully secured the loans, the SEC said.
In fact, the regulator contests that the companies had purchased longer-term account receivables that were less liquid and much riskier in nature.
Mr Gunlicks and Founding Partners are also accused of soliciting new investors for their primary fund without informing potential investors that it was facing "significant redemption requests".
David Nelson, director of the SEC's Miami regional office, said: "Founding Partners and [Mr] Gunlicks placed unsuspecting investors' assets in jeopardy through their fraudulent conduct."
The SEC is continuing its investigation into the firm.