Hedge fund titan Phil Falcone barred 2 years from serving as an investment adviser for two years, meaning he also cannot raise new capital or make new investments through the fund.
Hedge fund titan Phil Falcone reached an agreement with SEC. After the agreement gets court approval then Phil Falcone would be barred for two years from “acting as or being an associated person” of any broker, dealer, investment adviser, municipal-securities dealer, municipal adviser, transfer agent, or nationally recognized statistical rating organization, according to the filing.
Terms of the deal allow Mr. Falcone to remain chief executive of hedge fund Harbinger, although the firm said it wasn’t clear how much time he would devote to the job.
The SEC accused hedge fund manager Falcone last year of manipulating the market, using hedge fund assets to pay his taxes and “secretly” favoring select customers at the expense of others — has also struck a deal with Harbinger Capital Partners, his flagship hedge fund.
Hedge fund Harbinger agreed to be overseen by a monitor, who will oversee the firm and ensure Harbinger is complying with the agreement, according to a person familiar with the matter.
Harbinger Group Inc., the holding company run by hedge fund manager Philip Falcone, said Thursday its fiscal second-quarter loss widened, pulled down by losses related to its preferred stock.
Harbinger reached a settlement that bars Falcone from being associated with investment deals for two years. He will also pay an $18 million fine, without admitting or denying fraud allegations.
The filing added that the settlement “does not limit Mr. Falcone from owning or controlling our company or from serving as an officer or director of our company, including continuing in his role as our Chief Executive Officer and Chairman of our board.”
After two years Phil Falcone may seek the consent of the SEC to have the bar and injunction lifted.