Harbinger’s Falcone in SEC Crosshairs

Fund manager Phil Falcone is under the gun. The SEC filed Wells notices on Falcone and his hedge fund Harbinger Capital Partners on Friday, indicating charges are likely according to an article in the Wall Street Journal.

HARBINGER

So, Phil Falcone…  What’s the Frequency?

The issue appears to be whether Harbinger allowed some investors, like Goldman Sachs (GS), “to cash out of their holdings while barring other clients from withdrawing their money, according to people familiar with the matter.” The WSJ writes, “Harbinger said it is ‘disappointed’ with the issuance of the Wells notices, and if the SEC decides to bring an enforcement action, it intends to ‘vigorously defend against it,’ according to the filing.” Falcone’s issues with the SEC began in March, when Harbinger disclosed “the SEC was investigating the firm for possible market manipulation and also probing a loan that Mr. Falcone took out from the fund in October 2009.” On Friday, December 9, “the firm diclosed a third issue related to the circumstances and disclosure related to agreements with certain fund investors.”

Phil Falcone and the Feds

Phil Falcone is no stranger to federal investigators – not that he has actually ever been charged with anything before. Recently, Harbinger received notification from the SEC that it may be sued for its intent to halt investor withdraws for the end of the year and it has come under fire for its involvement with LightSquared, specifically  Senator Charles Grassley (R-Iowa) has questioned whether Falcone made donations to Democrats to smoothe the “regulatory way” for the company. Specifically, Falcone has been asked to testify on his investment in LightSquared and asked to produce documents detailing his firm’s communications with Obama administration officials over Light Squared, by both the U.S. Judiciary Committee and the Senate Agriculture Committee.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!