Harbinger, Philip Falcone Agree To Fines and Bar of Falcone to Settle SEC Charges

by InvestorLawyers on August 19, 2013

in Uncategorized

According to recently-filed court papers, to settled Securities and Exchange Commission (“SEC”) charges, hedge fund manager Philip Falcone of Harbinger Capital and certain Harbinger entities admitted to factual allegations by the SEC, agreed to pay disgorgement of over $6 million and fines of over $10 million, and agreed to a ban on Mr. Falcone’s association with any broker-dealer for at least five years.

Among the set of facts that Falcone and Harbinger admitted to in settlement papers filed with the court:

  • Falcone improperly borrowed $113.2 million from the Harbinger Capital Partners Special Situations Fund (SSF) at an interest rate less than SSF was paying to borrow money, to pay his personal tax obligation, at a time when Falcone had barred other SSF investors from making redemptions, and did not disclose the loan to investors for approximately five months.
  • Falcone and Harbinger granted favorable redemption and liquidity terms to certain large investors in HCP Fund I, and did not disclose certain of these arrangements to the fund’s board of directors and the other fund investors.

If you suffered significant losses in Harbinger hedge funds and wish to explore your legal rights and options you may contact a securities litigation lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 for a no-cost, confidential consultation.

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