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Univ. of Toledo College of Law

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Thursday, May 9, 2013

Falcone Agrees to Two-Year Bar as Associated Person of Investment Adviser

Philip A. Falcone, the CEO of Harbinger Group and Harbinger Capital, and the SEC's Enforcement Division have reached an agreement in principle to settle two SEC enforcement actions, according to a 10-Q filed by Harbinger Group.  Under the terms of the settlement, Falcone will be barred for a period of two years from acting as an associated person of any broker, dealer, or investment adviser.  After two years, Falcone may seek the SEC's consent to have the ban lifted. The settlement does not prevent Falcone from owning or controlling Harbinger Group or from serving as an officer or director of the company.  Harbinger agreed to pay $18 million and to be overseen by a monitor to ensure compliance with the agreement.  Neither Falcone nor Harbinger admitted or denied the allegations of fraud.

The SEC charged that Falcone put his own interests, including maintaining a "lavish lifestyle," above those of his investors.

WSJ, Falcone Reaches Deal With SEC

http://lawprofessors.typepad.com/securities/2013/05/falcone-agrees-to-two-year-bar-as-associated-person-of-investment-adviser.html

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