Remember the time Harbinger Capital Partners founder Phil Falcone was a little short on cash, and decided to “borrow” $113 million from a fund in which redemptions had been suspended in order to pay personal taxes, which he later begrudgingly apologized for? Unfortunately for Big P, the SEC does. (The regulator also recalls he time he allegedly played favorites with Goldman and allegedly manipulated some markets.)

Philip Falcone, the billionaire founder of Harbinger Capital Partners LLC, faces a lawsuit from U.S. regulators as soon as this week over claims he improperly borrowed client funds to pay his taxes and gave preferential treatment to Goldman Sachs Group Inc., according to two people familiar with the matter. Falcone, 49, may also face a market manipulation claim related to trading in bonds of MAAX Holdings Inc., said the people, who asked not to be identified because the matter isn’t public. The Securities and Exchange Commission voted to authorize enforcement staff to file the case, the people said.

While perhaps not the best news Falcone has received in a while, it likely does not come as a surprise, as the SEC has been talking about the aforementioned offenses since last December (when they tried to get him banned from the securities industry). Either way, Phil, who is likely in for a mouthful tonight, is planning to “contest to the suit.”

SEC Said To Authorize Lawsuit Against Harbinger’s Falcone [Bloomberg]

137 comments (hidden to protect delicate sensibilities)
Show all comments ↓

Comments (137)

  1. Posted by Gym | June 26, 2012 at 3:14 PM

    Is there a place I can go long PF's chances of ending up in jail very soon.

    -Guy who can't remember a week that nothing unethical came out about this guy.

  2. Posted by gab | June 26, 2012 at 3:16 PM

    Looks like Lisa is reaching back and giving him a Melvin.

  3. Posted by Texashedge | June 26, 2012 at 3:17 PM

    Why does that picture look familiar?

    /Munich insurance salesman

  4. Posted by inlovewithpmco | June 26, 2012 at 3:22 PM

    Is that cape available at Bonobos?

  5. Posted by Crazed CEO | June 26, 2012 at 3:28 PM

    A fucking CEO can borrow all the money that dumbasses are willing to lend him!! Ever see the movie "Casino" where DeNiro plays the guy running the Tangier? In one scene he's in his office and he isn't wearing any pants! That's because he's the fucking boss and the fucking boss can choose to borrow money or not wear pants if he fucking wants to! You fuckers have to wear pants at work! You fuckers have to get approved to borrow money. Some CEOs don't have to! All you little people can go straight to Hell wearing pants and getting denied loans! Little people!!

  6. Posted by Mexi_Cant | June 26, 2012 at 3:32 PM

    There's a CDS for that.

  7. Posted by SEC Enforcement | June 26, 2012 at 3:33 PM

    To be honest, we might not get around to prosecuting him. We're pretty busy.

    -Bonobos/Youporn user

  8. Posted by george87 | June 26, 2012 at 4:04 PM

    Honey, I love you, I think you're a terrific girl, but you have clothes like a fuckin dickhead.

  9. Posted by 2 cubes over | June 26, 2012 at 4:08 PM

    I see what you did there with the wrist bands.

  10. Posted by Dirk Diggler | June 26, 2012 at 4:09 PM

    Who says Reed Rothchild is a fictional character?

  11. Posted by Dirk Diggler | June 26, 2012 at 4:14 PM

    You can get exposure by going long Mrs. PF's law firm.

  12. Posted by Richard Head | June 26, 2012 at 4:16 PM

    There goes the poor boy from Minnesota makes it big in New York story I've been working on .

  13. Posted by RedRidingHo | June 26, 2012 at 4:20 PM

    Grandma, what a low NECKLINE you have!

  14. Posted by PermaGuestII | June 26, 2012 at 4:21 PM

    Too late anyway.

    F. S. Fitzgerald

  15. Posted by George Costanza | June 26, 2012 at 5:14 PM

    Was that wrong? Should I not have done that?

  16. Posted by HungryIntern | June 26, 2012 at 5:38 PM

    I think we should give Phil a golf clap, for continuing the long and honorable tradition of having a Harvard alum being indicted for a while color crime or getting banned by the SEC.

  17. Posted by Laxbro | June 26, 2012 at 5:38 PM

    Give me a break. How is an authentic Chinese restaurant going to go to jail?

    -UBS Fine Dining Quant

  18. Posted by Capt Save-a-Ho | June 26, 2012 at 5:39 PM

    Looking for one too.

  19. Posted by Guest | June 26, 2012 at 5:42 PM

    F. Scott obsessing over some rando slam from Yale. NF. Making millions and becoming a literary legend writing about her. TFM.

  20. Posted by Laxbro | June 26, 2012 at 5:45 PM

    Not so subtle Yale trolling. Please moderate.

  21. Posted by HungryIntern | June 26, 2012 at 6:01 PM

    I think a Yale alum, would know the difference between white and while…

  22. Posted by Guest | June 26, 2012 at 6:13 PM

    1- Raj Raj
    2- Raj Gupta
    3- Phil Falcone
    4- TBD

    -The Gasparino Prophesy lives….

  23. Posted by Laxbro | June 26, 2012 at 6:35 PM

    Touché. Fairly subtle Dartmouth trolling. Please moderate.

  24. Posted by guest | June 27, 2012 at 10:44 AM

    worst bruce wayne/catwoman couples costume ever

    – wilbur "spiderpig" the pig

  25. Posted by crork | September 10, 2012 at 2:45 AM

    DBY1fs I cannot thank you enough for the blog post.Much thanks again. Really Cool.

  26. Posted by web sitesi | September 11, 2012 at 3:29 PM

    Fantastic article.Really looking forward to read more. Keep writing.

  27. Posted by precios economicos imprenta | September 13, 2012 at 2:31 AM

    Thanks-a-mundo for the post.Thanks Again. Want more.

  28. Posted by golf sets | September 14, 2012 at 7:14 AM

    I really liked your post.Thanks Again. Want more.

  29. Posted by lr web hosting | September 14, 2012 at 8:29 AM

    Im thankful for the post. Want more.

  30. Posted by Fans & Followers for your social media campaign! | September 14, 2012 at 11:41 AM

    A big thank you for your blog.Really looking forward to read more. Really Cool.

  31. Posted by Fans and followers to kickstart your social media campaign! | September 14, 2012 at 2:08 PM

    Im obliged for the blog post.Thanks Again. Awesome.

  32. Posted by diamants | September 14, 2012 at 6:05 PM

    I really enjoy the blog post.Thanks Again. Will read on…

  33. Posted by princess party | September 17, 2012 at 3:06 AM

    Major thanks for the post.Really thank you! Awesome.

  34. Posted by pikalaina | September 18, 2012 at 8:07 AM

    Really appreciate you sharing this blog post.Really looking forward to read more. Really Great.

  35. Posted by TDAP Vaccine Side Effects | September 18, 2012 at 8:46 AM

    Thanks again for the blog.Thanks Again. Much obliged.

  36. Posted by Team Building | September 18, 2012 at 3:54 PM

    Great, thanks for sharing this blog.Much thanks again. Keep writing.

  37. Posted by industrial power supplies | September 19, 2012 at 1:08 PM

    Im grateful for the post. Really Cool.

  38. Posted by learn play guitar | September 19, 2012 at 2:56 PM

    A big thank you for your article.Much thanks again. Want more.

  39. Posted by Eloy Guterriez | September 19, 2012 at 9:14 PM

    within how many day after requesting for e-mail ID we receive confirmation approx?
    And how to use this facebook mail id (link)?

  40. Posted by cash advance | September 19, 2012 at 11:38 PM

    A big thank you for your blog post.Much thanks again. Want more.

  41. Posted by buy instagram followers for cheap | September 20, 2012 at 6:13 AM

    Enjoyed every bit of your blog post. Will read on…

  42. Posted by Natural Treatment For Alopecia Areata | September 20, 2012 at 7:26 AM

    Enjoyed every bit of your article. Keep writing.

  43. Posted by Stacey | September 20, 2012 at 7:05 PM

    Whats up! I just want to give an enormous thumbs up for the nice information you’ve gotten here on this post. I will probably be coming back to your weblog for extra soon.

  44. Posted by cheap bookmarking service | September 20, 2012 at 11:57 PM

    tQFrXI Hey, thanks for the blog article.Thanks Again. Awesome.

  45. Posted by service apartments in delhi | September 21, 2012 at 2:15 PM

    I loved your blog post.Much thanks again. Awesome.

  46. Posted by Registrar Transfer | September 21, 2012 at 3:01 PM

    I am so grateful for your blog.Really looking forward to read more. Want more.

  47. Posted by warroom | September 21, 2012 at 5:12 PM

    Very good blog post.Really looking forward to read more. Keep writing.

  48. Posted by bad credit loans | September 22, 2012 at 12:07 AM

    I really enjoy the post.Really thank you! Cool.

  49. Posted by ppc | September 22, 2012 at 1:39 AM

    Really enjoyed this blog article.Really looking forward to read more.

  50. Posted by buy instagram followers | September 22, 2012 at 6:24 PM

    A round of applause for your blog post. Awesome.

  51. Posted by stomach fat loss | September 23, 2012 at 1:42 AM

    I am so grateful for your blog post.Thanks Again.

  52. Posted by bookmarking service | September 23, 2012 at 5:08 PM

    Q8DP5R I think this is a real great article post.Thanks Again. Want more.

  53. Posted by lida uretim | September 23, 2012 at 6:57 PM

    Edidn`t think about that. I’ll tell my mother, she won`t believe it..!

  54. Posted by mobile phone tracking app | September 23, 2012 at 10:05 PM

    I really liked your blog.Really thank you!

  55. Posted by Free Books Online | September 25, 2012 at 2:44 AM

    Thanks for sharing, this is a fantastic post.Thanks Again. Will read on…

  56. Posted by free press release | September 25, 2012 at 8:25 AM

    Thanks-a-mundo for the article post.Really thank you! Cool.

  57. Posted by weight loss hypnosis free | September 26, 2012 at 12:13 AM

    A round of applause for your post.Much thanks again. Keep writing.

  58. Posted by Real Quick Commissions | September 26, 2012 at 3:34 AM

    This is one awesome blog post.Really looking forward to read more. Will read on…

  59. Posted by useful source | September 26, 2012 at 7:34 AM

    I loved your article post.Much thanks again. Want more.

  60. Posted by British English | September 26, 2012 at 10:08 AM

    Fantastic blog post.Much thanks again. Want more.

  61. Posted by Online Goldmine | September 26, 2012 at 3:50 PM

    I really enjoy the article.Really looking forward to read more. Cool.

  62. Posted by Peter Francis-Macrae | September 26, 2012 at 7:36 PM

    Thanks a lot for the post.Much thanks again. Awesome.

  63. Posted by Peter Francis-Macrae | September 26, 2012 at 11:25 PM

    Thank you for your article. Cool.

  64. Posted by Mac dazzleglass | September 27, 2012 at 10:55 AM

    Im grateful for the blog.Really looking forward to read more. Will read on…

  65. Posted by Tao Of Badass | September 27, 2012 at 12:11 PM

    I loved your post.

  66. Posted by buy Pinterest followers | September 27, 2012 at 11:47 PM

    Thanks for sharing, this is a fantastic blog post.Thanks Again. Will read on…

  67. Posted by Buy Instagram Followers | September 28, 2012 at 1:26 AM

    Muchos Gracias for your article post.Much thanks again. Keep writing.

  68. Posted by wedding photographer | September 28, 2012 at 4:46 AM

    Really informative post.Much thanks again. Really Cool.

  69. Posted by Buy Instagram Likes | September 28, 2012 at 4:13 PM

    Really appreciate you sharing this post.Thanks Again. Cool.

  70. Posted by dog boarding in sarasota fl | September 28, 2012 at 7:22 PM

    I cannot thank you enough for the blog post.Really thank you! Really Great.

  71. Posted by click here | September 29, 2012 at 10:50 AM

    Really informative article.Really looking forward to read more. Much obliged.

  72. Posted by Membership Sites Blueprint | September 29, 2012 at 2:00 PM

    Great article post.Thanks Again. Really Great.

  73. Posted by playground safety surface | September 29, 2012 at 4:37 PM

    A round of applause for your post. Will read on…

  74. Posted by edmonton wedding planners | September 29, 2012 at 6:19 PM

    Major thankies for the post.Much thanks again. Fantastic.

  75. Posted by zürich kunst galerie | September 30, 2012 at 5:33 AM

    I really like and appreciate your article. Really Cool.

  76. Posted by 500 fastcash | September 30, 2012 at 7:15 AM

    Thanks-a-mundo for the blog post.Much thanks again.

  77. Posted by 500 fastcash | September 30, 2012 at 10:40 AM

    I really like and appreciate your blog article.

  78. Posted by cartridges | September 30, 2012 at 11:43 PM

    Great, thanks for sharing this blog.Thanks Again.

  79. Posted by canon photo paper | October 1, 2012 at 6:36 AM

    Really enjoyed this article post.Really looking forward to read more. Keep writing.

  80. Posted by News | October 1, 2012 at 4:49 PM

    Awesome blog article.Really looking forward to read more. Great.

  81. Posted by stationers | October 2, 2012 at 10:46 AM

    Very good article post.Really thank you! Much obliged.

  82. Posted by dentist columbus oh | October 2, 2012 at 1:42 PM

    A big thank you for your blog.Really thank you! Great.

  83. Posted by deep capture blog | October 2, 2012 at 7:10 PM

    Major thanks for the blog post. Great.

  84. Posted by buy instagram followers | October 2, 2012 at 9:38 PM

    Great, thanks for sharing this article.Really looking forward to read more. Much obliged.

  85. Posted by dentist calgary downtown | October 3, 2012 at 1:19 AM

    Wow, great blog post.Really thank you!

  86. Posted by Anytime Profits | October 3, 2012 at 10:07 AM

    I loved your blog article.Really thank you! Much obliged.

  87. Posted by OMG Machines | October 3, 2012 at 12:00 PM

    Great blog article. Will read on…

  88. Posted by buy soundcloud plays | October 3, 2012 at 4:59 PM

    Looking forward to reading more. Great article post. Keep writing.

  89. Posted by seattle locksmith | October 4, 2012 at 10:56 AM

    A round of applause for your article.Really looking forward to read more. Will read on…

  90. Posted by creatine | October 4, 2012 at 11:43 AM

    Wow, great blog article.Really thank you! Really Great.

  91. Posted by Tacoma Carpet Cleaning | October 4, 2012 at 4:59 PM

    I really liked your article. Great.

  92. Posted by factory iphone unlocking | October 4, 2012 at 7:01 PM

    Really informative article. Really Great.

  93. Posted by Writers Relief | October 5, 2012 at 1:06 AM

    A big thank you for your blog article.Thanks Again. Cool.

  94. Posted by Internet Business | October 5, 2012 at 4:33 AM

    Say, you got a nice blog post.

  95. Posted by Internet Business | October 5, 2012 at 6:22 AM

    A round of applause for your article post.Much thanks again. Keep writing.

  96. Posted by buy instagram followers | October 5, 2012 at 8:12 AM

    I really enjoy the article.Really thank you! Will read on…

  97. Posted by training a dog | October 5, 2012 at 7:33 PM

    Very good blog.Thanks Again. Cool.

  98. Posted by buy garbage disposal | October 6, 2012 at 4:19 AM

    Yeah !… life is like riding a bicycle. You will not fall unless you stop pedaling!!…

  99. Posted by buy instagram likes cheap | October 8, 2012 at 3:09 PM

    Major thankies for the blog article.Really looking forward to read more. Keep writing.

  100. Posted by Buy Instagram Followers | October 8, 2012 at 5:09 PM

    Thanks for sharing, this is a fantastic blog. Much obliged.

  101. Posted by VPS Server | October 8, 2012 at 6:32 PM

    Really appreciate you sharing this blog post.Really looking forward to read more. Really Great.

  102. Posted by http://howtogetridofacnex.net | October 8, 2012 at 7:08 PM

    Awesome post. Keep writing.

  103. Posted by Utility studies | October 8, 2012 at 8:33 PM

    Thanks so much for the article.Thanks Again. Much obliged.

  104. Posted by Electro Breach Spring Break 2013 | October 8, 2012 at 10:35 PM

    I am so grateful for your article post.Thanks Again. Much obliged.

  105. Posted by keep happiness | October 9, 2012 at 2:38 AM

    I am so grateful for your blog.Much thanks again. Much obliged.

  106. Posted by buy 1000 twitter followers for cheap | October 9, 2012 at 3:21 AM

    Thanks-a-mundo for the blog article.Much thanks again. Great.

  107. Posted by hacking | October 9, 2012 at 7:17 AM

    Say, you got a nice article.Really looking forward to read more. Will read on…

  108. Posted by Pest Control Company in Brooklyn NY | October 9, 2012 at 3:24 PM

    I think this is a real great article post.Much thanks again. Keep writing.

  109. Posted by buy fans | October 9, 2012 at 8:37 PM

    Great blog.Really looking forward to read more. Cool.

  110. Posted by background check | October 9, 2012 at 9:54 PM

    A big thank you for your article.Really thank you! Want more.

  111. Posted by chrome rims | October 10, 2012 at 6:52 AM

    Really informative article.Really thank you! Cool.

  112. Posted by chrome rims | October 10, 2012 at 9:02 AM

    Fantastic article.Really looking forward to read more. Fantastic.

  113. Posted by sex cams | October 10, 2012 at 10:19 AM

    I value the article.Thanks Again. Fantastic.

  114. Posted by solar ventilation | October 10, 2012 at 11:30 AM

    Thanks again for the article post.Really thank you! Awesome.

  115. Posted by ćwiczenia na powiększenie członka | October 10, 2012 at 2:03 PM

    Enjoyed every bit of your article post.Much thanks again. Really Cool.

  116. Posted by Fat loss Factor | October 10, 2012 at 6:30 PM

    I really like and appreciate your blog.Really thank you! Really Great.

  117. Posted by tavo kosmetika | October 10, 2012 at 6:57 PM

    Awesome article.Much thanks again. Cool.

  118. Posted by TrapStep | October 10, 2012 at 7:41 PM

    Thanks a lot for the article.Much thanks again. Really Great.

  119. Posted by secrets of superman stamina | October 10, 2012 at 7:42 PM

    Say, you got a nice article.Thanks Again.

  120. Posted by Facebook Photo Contest | October 11, 2012 at 3:38 PM

    I really like and appreciate your post.Much thanks again. Cool.

  121. Posted by auto insurance Chicago | October 11, 2012 at 4:44 PM

    I really liked your article post.Thanks Again. Really Cool.

  122. Posted by Fastest | October 11, 2012 at 5:22 PM

    Thanks a lot for the article.Really looking forward to read more. Will read on…

  123. Posted by home based business opportunities | October 11, 2012 at 7:23 PM

    Looking forward to reading more. Great blog post. Much obliged.

  124. Posted by Garage Conversion Quotes | October 12, 2012 at 12:53 PM

    Great, thanks for sharing this blog. Much obliged.

  125. Posted by Peter Francis-Macrae | October 12, 2012 at 5:37 PM

    Awesome article post. Awesome.

  126. Posted by jobs hiring | October 12, 2012 at 6:17 PM

    Thank you very much! I took it for myself too. Will be useful!!…

  127. Posted by Peter Francis-Macrae | October 12, 2012 at 7:25 PM

    Im thankful for the blog post.Really looking forward to read more. Cool.

  128. Posted by albuquerque mortgage broker | October 13, 2012 at 2:27 AM

    Appreciate you sharing, great blog article.Much thanks again.

  129. Posted by fanshion Jewellery Wholesale | October 13, 2012 at 9:31 AM

    Im obliged for the article.Really thank you!

  130. Posted by eat healthier | October 15, 2012 at 12:26 PM

    I truly appreciate this blog.Thanks Again. Really Cool.

  131. Posted by health & fitness | October 15, 2012 at 6:13 PM

    wow, awesome blog.Much thanks again. Much obliged.

  132. Posted by ver tv por internet | October 16, 2012 at 6:55 AM

    Very neat article post.Really looking forward to read more. Cool.

  133. Posted by property management | October 16, 2012 at 8:32 AM

    Appreciate you sharing, great article.Much thanks again. Much obliged.

  134. Posted by Contract Cleaning Quotes | October 16, 2012 at 12:44 PM

    Very neat blog article.Thanks Again. Fantastic.

  135. Posted by EU Führerschein beantragen | October 16, 2012 at 3:25 PM

    Major thanks for the blog article.Much thanks again. Will read on…

  136. Posted by 8 SEO Tips to Boost Your Blog Traffic | October 16, 2012 at 7:12 PM

    I loved your blog post.Much thanks again. Keep writing.

  137. Posted by storage auctions | October 16, 2012 at 9:03 PM

    Im grateful for the blog.Thanks Again. Great.