Philip Falcone to be Sued by US Regulators

Philip Falcone to be Sued by US Regulators
Source: Made with Photoshop

Philip Falcone to be Sued by US Regulators

According to a report by Bloomberg, the Securities and Exchange Commission has voted in favor of filing a lawsuit against Philip Falcone, billionaire founder of hedge fund Harbinger Group Inc (NYSE:HRG)  for inappropriately using client funds to pay his own taxes, and for giving unduly preferential treatment to Goldman Sachs Group, Inc. (NYSE:GS) to withdraw funds.

The SEC may be charging Falcone that he misled investors by not appropriately disclosing a loan of $113 million he took in 2009 from the fund’s investors and used to pay his personal taxes. Falcone has since repaid the money.

Quant ESG With PanAgora Asset Management’s George Mussalli

investValueWalk's Raul Panganiban interviews George Mussalli, Chief Investment Officer and Head of Equity Research at PanAgora Asset Management. In this epispode, they discuss quant ESG as well as PanAgora’s unique approach to it. The following is a computer generated transcript and may contain some errors. Q3 2020 hedge fund letters, conferences and more Interview . Read More

The SEC may also be booking Falcone for certain favors granted to Goldman Sachs, and other investors, by letting them withdraw funds, while barring other investors from taking out their funds. Reportedly, Goldman Sachs was also favored with privileged information regarding the restructuring of the firm that was not provided to other funds.

Falcone may also be slapped with a market manipulation claim for improper trading in the bonds of a company called MAAX Holdings Inc. Falcone once held almost $170 million of these bonds.

Falcone is likely to contest the lawsuit given that last year he refused to accept a settlement offer from the SEC which would have banned him from the financial markets, thus ending his career.

No posts to display