by Christopher Freeburn | July 19, 2013 3:57 pm
On Thursday, Harbinger Capital Partners learned that federal regulators have decided to decline a proposed settlement of civil fraud charges against the firm and its principal, Philip Falcone.
Commissioners at the Securities and Exchange Commission (SEC) voted to reject a deal that would have required Harbinger to pay an $18 million fine and would have imposed a two-year ban on any involvement in the securities industry by Falcone. The SEC did not disclose why it failed to approve the settlement, the Associated Press notes.
Neither Harbinger nor Falcone would have been required to admit or deny any wrongdoing under the deal.
The SEC sued Harbinger and Falcone last year, accusing the Falcone of manipulating high-risk bond prices. He was also accused to allowing some investors to withdraw money from Harbinger’s funds while forbidding others to do the same.
Falcone negotiated a preliminary version of the deal with the SEC in May.
Last year, Falcone saw his plans to establish a 4G wireless network crash to the ground when wireless startup Lightsquared was forced to file for bankruptcy protection after failing to win wireless spectrum waivers from the Federal Communications Commission.
Source URL: http://investorplace.com/2013/07/sec-rejects-billionaire-philip-falcone-settlement/
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