What exactly is the alleged financial misconduct - is it just not investing money? That doesn't make too much sense to me in terms of incentives. The VC will m

What exactly is the alleged financial misconduct - is it just not investing money? That doesn't make too much sense to me in terms of incentives. The VC will make this fee no matter what they invest in. They make more money if their investments go up, and they make the same amount of money if their investments go down. So there isn't really an incentive to sit on the money and do nothing. If anything VCs have an incentive to invest in stupid investments rather than sit on the money..