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In his day, Phil Falcone was a pretty good hedge fund manager. But he’s not so good at paying taxes, so he had to stop doing that, and unfortunately, just about everything he’s tried since has fallen squarely on the “paying taxes” side of his competency: building the wireless network of the future, making women’s undergarments, (allegedly) meeting loan obligations, (allegedly) paying lawyers and, of course, paying taxes. To this list, one can now add figuring out the long-term insurance care industry, although this is very much someone else’s problem now.

Over time, Mr. Corcoran became concerned by what he described in a 2019 memo to the insurer’s independent board members as Mr. Falcone’s “continuing interjections into [Continental’s] day-to-day transactions, affairs and operations that include what look like threats and intimidation” in regards to investments. He wrote that those actions possibly violated the conditions put on Mr. Falcone in the insurance-department deal approvals.

You know, the ones he had to accept on account of the whole being banned from the securities industry thing.

Additional detail is contained in a lawsuit filed in a Texas state court last May by Continental against Mr. Corcoran accusing him of breach of contract and other employment-related wrongdoing.

You know, just before he departed his second post-hedge fund comeback conglomerate to engage in unspecified “future endeavors.”

Mr. Corcoran said Mr. Falcone pushed Continental to invest in HC2 affiliates as well as make at least two other specific investments. One of those took the form of more than $10 million in loans to an upstart gem and jewelry business named Arcot Finance LLC. Continental’s regulatory filings for 2019 indicated the investment had lost money…. Mr. Corcoran, along with an independent Continental director, raised concerns about Mr. Falcone to the Texas Department of Insurance in 2019. In early 2020, the department was examining the insurer’s related-party activities, affiliated agreements, investments and corporate governance, according to Continental’s regulatory filings.

Philip Falcone’s Second Act in Long-Term-Care Insurance Turns Ugly [WSJ]



Bonus Watch '20 (And Beyond?): Local Man Facing Asset Freeze, Lawsuits Over Debts Doing So Well He Needs No Bonus

Phil Falcone is really just disappointed in himself and not at all making a desperate gambit to keep his job.


Phil Falcone Responds To Reporter Asking About Unpaid Bills That Nearly Sent Him To Jail With Defensive Retort About Offshore Accounts

This seems, at best, a questionable strategy for a person trying to demonstrate he’s not illegally screwing over his creditors.

Phil Falcone Is Turning His Life Around

To put it lightly, the last couple years have been a rather dark time for Phil Falcone. Though his woes are too numerous to mention in full, they include: the adversity he's faced in getting people to believe in LightSquared; his unbelievably pissy investors, who still aren't over the time he borrowed $113 million from a gated fund to pay personal taxes, or offered to pay out redemptions in illiquid LightSquared equity; the Securities and Exchange Commission, which wants him banned from the industry for life; the woman who once offered a respite from it all, who now won't even come out of her room when she knows he's home; and, of course, the plunging returns in his once highly profitable hedge fund. It would be enough to make a grown man say 'Fuck, it. I'm done.' Put a few things in a sack, tie it to the blade of a hockey stick, and hitchhike back to Minnesota. But Phil didn't do that and now? After a merciless storm of shit that felt like it would never ease up? After long days of investors and regulators breathing down his neck and nights of having to pound on the front door because he was accidentally purposely locked out of the house? The tide feels like it's turning for Philip Falcone. Beleaguered hedge fund honcho Phil Falcone’s big bet on his own publicly traded entity, Harbinger Group, is helping to lift his troubled hedge fund, Harbinger Capital Management, out of the deep end. Falcone’s flagship fund posted returns of 10.6 percent in July and a whopping 28 percent gain in June. Of course, he's still down 5.8 percent year-to-date, and the the director of the SEC's division of enforcement wants hedge fund graduate schools to use Harbinger as a case study during the unit on "how to operate a hedge fund unlawfully," but tonight? Tonight he tells Lisa to treat herself to something nice. Tonight he tells Wilbur to pull the baby grand out of the closet, where it's sat untouched for months. Tonight his key works in the lock. Tonight we dance. Phil Helps Himself [NYP]