Unlike the hedge fund industry, the private equity industry has been able to generally avoid the kind of scandals that can tarnish its reputation. However, regulators now seem to be taking a closer look at the industry, and the number of executives who face disciplinary actions may be set to rise. Case in point: AA Capital Partners of Chicago, which was spun out of ABN AMRO in 2001, is now fighting SEC charges that John Orecchio, its chief, may have somehow appropriated at least $5.7 million for personal use and $5 million more to improperly pay business expenses. Also, the SEC has settled insider trading charges against Justin Huscher, formerly of Madison Dearborn Partners.  Last year, Tedd Berman of Chartwell Investments admitted to improprieties. Again, the industry may need some image work. 

For more on Orecchio:
- Here's an Investment Dealers' Digest article (For FierceFinance readers)