Falcone to Settle with SEC
Posted at: 08/20/2013 3:37 PM
| Updated at: 08/20/2013 3:38 PM
NEW YORK (AP) - Hedge fund titan Phil Falcone and his firm, Harbinger Capital Partners, will pay $18 million to settle Securities and Exchange Commission charges over Falcone's use of firm money and other accusations.
Falcone and his firm must also admit wrongdoing, a departure from many recent SEC settlements that have allowed banks and employees to neither admit nor deny guilt. Falcone is also barred from the brokerage industry for five years.
The SEC last year accused Falcone of improperly using $113 million of Harbinger's assets to pay his personal taxes. The SEC also said that Harbinger had secretly favored requests from certain customers who wanted to withdraw their funds at the expense of other investors.
The settlement must be approved by a district court judge.
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