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Goldman Sachs Pulls $120 Million From Harbinger Capital After Falcone "Loans" Himself Money From Other Fund

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Bloombergreports that Goldman Sachs plans to pull its entire investment from Harbinger Capital's flagship fund, for two reasons. 1) The returns weren't very good and 2) Falcone "borrowed" $113 million from one of his firm's smaller funds (where redemptions had been suspended) in order to pay personal taxes.

First off, everybody just breathe: one the hand, there's some good news to be gleaned here-- Phil Falcone pays his taxes! That's more than you can say for a lot of people. On the other: let us take a moment to freak the fuck out! Unless we're missing something, the fact that he needs to loan himself money from investors to pay his own taxes can't be good and there are some serious, serious things at risk in the event things take a turn for the worst. Such as:

* Wilbur, the Falcone's piano-playing pig. Who's going to take him in?

* The Little People who work the Falcone children's birthday parties

* LISA MARIE FALCONE'S WARDROBE. Gladiator. Mermaid Chic. Slutty Peacock. You think that shit comes cheap? Think again!


The Yet-To-Be Finished Memoir Of Wilbur P. Falcone

Wilbur glanced down at her watch. 12:13. Usually, she hated when people were late and, under normal circumstances, this would have gone beyond the point of what she'd tolerate. Hell, make her wait more than 5 or 6 minutes and you were ensuring you'd be receiving a series of irate texts inquiring sharply as to "WHERE THE HELL ARE YOU??????!!???" and threatening "If you're not here in 30 seconds I'm leaving." But today she was practically willing Tom to continue making her wait under the bodega awning. Just another minute. Just one more minute.

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

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? 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 should probably just not going home tonight unless he wants an earful, is planning to "contest to the suit." SEC Said To Authorize Lawsuit Against Harbinger’s Falcone [Bloomberg]