{"id":5444,"date":"2013-05-16T00:00:00","date_gmt":"2013-05-16T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/05\/hedge_fund_manager_philip_falc_1"},"modified":"2022-03-10T09:14:53","modified_gmt":"2022-03-10T15:14:53","slug":"hedge-fund-manager-philip-falc-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-manager-philip-falc-1\/","title":{"rendered":"Hedge Fund Manager Philip Falcone Consents to $18M Securities Fraud Settlement"},"content":{"rendered":"\n

Hedge fund billionaire Philip Falcone and his Harbinger Group (HRG) have reached an $18 million securities fraud <\/a>settlement, an agreement in principle, with the SEC over allegations that he fraudulently took a $113 million loan from one of his funds to cover his taxes, manipulated the market, and gave preference to certain clients, including Goldman Sachs (GS). Falcone, who will personally pay $4 million, is settling the financial fraud case without admitting or denying wrongdoing. Although he can remain has CEO of his group and stay associated with Harbinger Capital Partners, he is barred from raise new money or using his hedge funds to make investments for two years.<\/p>\n

The ban, however, doesn\u2019t apply to the nine investment advisers that Falcone runs through the company. (This, some say, is so that Falcone can unwind the hedge fund without hurting investors.) The pending deal is once again raising questions about whether the SEC is doing enough to take action against wrongdoers in the industry. <\/p>\n

For instance, Harbinger Group\u2019s business that involves Falcone acting as a private equity investor in different companies is not really impacted by the SEC settlement. Also, the independent monitor selected by the SEC to watch the firm is one who was on a list that Falcone recommended.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Hedge fund billionaire Philip Falcone and his Harbinger Group (HRG) have reached an $18 million securities fraud settlement, an agreement in principle, with the SEC over allegations that he fraudulently took a $113 million loan from one of his funds to cover his taxes, manipulated the market, and gave preference to certain clients, including Goldman […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3748,3760,3795,3761],"tags":[],"class_list":["post-5444","post","type-post","status-publish","format-standard","hentry","category-hedge-funds","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis"],"yoast_head":"\nHedge Fund Manager Philip Falcone Consents to $18M Securities Fraud Settlement — Investor Lawyers Blog — May 16, 2013<\/title>\n<meta name=\"description\" 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