• 26 Jun 2012 at 3:03 PM

Securities And Exchange Commission Still Hung Up About The Time Phil Falcone Borrowed Money From A Gated Fund To Pay Personal Taxes

By

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]

Comments (137)

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

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

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    Why does that picture look familiar?

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    Is that cape available at Bonobos?

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    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!!

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

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    I see what you did there with the wrist bands.

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    Who says Reed Rothchild is a fictional character?

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

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

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    Grandma, what a low NECKLINE you have!

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    Too late anyway.

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    Was that wrong? Should I not have done that?

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