|  | | 2012 News and Press Releases | | |
HEADLINE NEWS:
S.E.C. Files Civil Charges Against Falcone
Azam Ahmed
The New York Times DealBook. June 27, 2012
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EXCERPT: The Securities and Exchange Commission filed civil charges against Philip A. Falcone and his hedge fund, Harbinger Capital Partners, claiming that the investor improperly took a loan from his firm and gave preferential treatment to a large investor.
Regulators, in their complaint on Wednesday, have also accused Mr. Falcone of manipulating the market price of certain bonds and stocks. "Today's charges read like the final exam in a graduate school course in how to operate a hedge fund unlawfully," Robert Khuzami, director of the S.E.C.'s division of enforcement, said in a statement. "Clients and market participants alike were victimized as Falcone unscrupulously used fund assets to pay his personal taxes, manipulated the market for certain bonds, favored some clients at the expense of others, and violated trading rules intended to prohibit manipulative short sales." Mr. Falcone has said he will fight the charges. The S.E.C. is moving to bar Mr. Falcone from serving as an officer or director of any public company, which would cripple his efforts to run the Harbinger Group, a publicly traded shell company he uses to make investments.
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