FORBES: Phil Falcone's Net Worth Fell 50% Since Last September

Phil Falcone

Photo: www.dealbreaker.com

We’ve all been watching what may be the slow demise of once high flying hedge funder Phil Falcone.Now, we have some quantitative proof to the extent of the damages to his fortune. Just last September, Falcone was estimated to be worth around $2.2 billion when Forbes released their Forbes 400 list of the wealthiest Americans. Today, on Forbes’ list of the world’s billionaires, Falcone is worth $1.1 billion—that’s a $1.1 billion decrease. Ouch.

What happened?

Although the founder of Harbinger Capital made billions by shorting mortgages during the subprime crisis, all investors think about these days are Falcone’s disastrous, nearly $3 billion investment in Lightsquared—the embattled telecom venture that the FCC rejected from pursuing wholesale services earlier this year and is rumoured to be struggling financially. In addition, Harbinger received Wells Notice from the SEC last year for a sketchy deal with Goldman Sachs, the fund is seeing loads of redemptions and Falcone has also been hit with lawsuits from his investors.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.