...to buy up extra longer-duration (60 month) loans at the ends of months/quarters...
How were you able to track this?
You can look at the monthly reports from the funds. They show the current allocation between 36 vs 60 month loans. The offering materials for the funds lists a "target allocation". For several years, the broad-based credit fund has been outside of its target allocation. The fraction of 60 month loans has been growing. Because this was a target and not a hard limit, I don't think this is a violation of anything, but it doesn't look like best practice. I will also note that this allocation has been reported to investors every month. Wasn't hidden.
The recent 8K from LC said ...
In addition, as previously disclosed, at December 31, 2015, the investment parameters of one of the LCA Funds, with respect to the allocation of 60-month loans, were exceeded. The Company’s review has found that this was due to non-adherence to the fund’s investment strategy, including in part due to the purchase of loans in the first quarter of 2016 that were about to expire on the Lending Club platform.
The Company and LCA have made several changes to improve the governance and the operations of the Funds as a result of this additional review. In June 2016, LCA established a majority independent Governing Board (the "LCA Board") for the Funds. The LCA Board will provide fiduciary oversight and make binding determinations for certain actions and activities of the Funds including approval of valuation policies and procedures, and review and adherence to respective investment strategies. Further, we are realigning responsibilities for accounting and financial reporting for the Funds within the Company.
It didn't mention anything about "ends of months/quarters". It said that in 2016Q1, the fund bought up some loans that were about to expire. Note that the allocation outside the goals was there for many years.