Phil Falcone's Harbinger Group Says He's Reached A Settlement With The SEC

philip falcone harbinger

Hedge fund manager Phil Falcone’s Harbinger Group said in a securities filing that he has reached a settlement with the Securities and Exchange Commission over two civil actions. (via DealBook)

Last summer, the SEC charged Falcone and his Harbinger Capital Partners with securities fraud

The regulatory agency alleged that Falcone and his fund engaged in “illicit conduct that included misappropriation of client assets, market manipulation and betraying clients,” the release said.

According to the 10-Q filing, it looks like he didn’t have to admit or deny the SEC allegations and he gets to remain CEO and chairman of the board.

The settlement also has to be approved.  

From the 10-Q: (emphasis ours)

On April 22, 2013, Harbinger Capital, Harbinger Capital Partners Offshore Manager, L.L.C., Harbinger Capital Partners Special Situations GP, L.L.C., and Mr. Falcone (collectively, the “HCP Parties”), advised the Company that they had reached an agreement in principle with the enforcement staff of the United States Securities and Exchange Commission (“SEC”) regarding the settlement of all matters related to the two civil actions previously filed by the SEC against the HCP Parties in the United States District Court for the Southern District of New York.These civil actions were previously disclosed in our prior filings with the SEC. The settlement was made without the HCP Parties admitting or denying any of the SEC’s allegations. The settlement is subject to approval by the Commissioners of the SEC and the court. There can be no assurance that the Commissioners or the court will approve the settlement on the terms described below.

Under the settlement, Mr. Falcone may continue to own and control our Company and serve as its Chief Executive Officer and Chairman of the board. Our Company and our subsidiaries (including, among others, Spectrum Brands Holdings, Inc., Fidelity & Guaranty Life Holdings, Inc. Five Island Asset Management LLC (“Five Island”), Salus Capital Partners LLC (“Salus”), Salus Capital Partners II LLC (“Salus II”, and together with Salus and Five Island, the “Subsidiary Advisers”), EXCO/HGI GP, LLC or Zap.Com Corporation or any of their

At the time of the SEC charges, Kevin Roose and Jessica Pressler at Daily Intel asked Falcone about them he responded via email “Piece of cake” adding, “It’s not like I’m having a heart transplant.” 

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