The SEC filed fraud charges Wednesday against Harbinger Capital Partners...
The SEC filed fraud charges Wednesday against Harbinger Capital Partners and its CEO Phil Falcone for illicit conduct. The conduct included misappropriation of client assets, market manipulation and betraying clients, the SEC said (http://xrl.us/bnc4pp). The agency also brought charges against…
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chief operating officer Peter Jenson “for aiding and abetting the misappropriation scheme.” The agency alleged that Falcone “fraudulently obtained $113.2 million from a hedge fund that he advised and misappropriated the proceeds to pay his personal taxes,” and that Harbinger engaged in illegal trades around purchasing common stock in three public offerings “after having sold the same securities short during a restricted period.” Harbinger is the largest investor for LightSquared, whose plans to build a terrestrial satellite service have been stalled due to interference problems with the GPS market (CD Feb 15 p1).