LightSquared investor Harbinger Capital Partners and CEO Phil...
LightSquared investor Harbinger Capital Partners and CEO Phil Falcone agreed to an $18 million SEC settlement on charges of illicit conduct. Under the settlement, Harbinger and Falcone agreed to admit to wrongdoing and “Falcone also agreed to be barred from…
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the securities industry for at least five years,” the SEC said in a press release (http://1.usa.gov/19GP5Tz). The parties admitted to multiple acts of misconduct “that harmed investors and interfered with the normal functioning of the securities markets,” it said. Falcone also admitted to improperly borrowing $113.2 million from the Harbinger Capital Partners Special Situations Fund “at an interest rate less than SSF was paying to borrow money, to pay his personal tax obligation, at a time when Falcone had barred other SSF investors from making redemptions,” the SEC said. It filed the charges last year (CD June 28/12 p20). Harbinger is the largest investor in LightSquared, whose plans for a terrestrial satellite service were stalled due to opposition from the GPS industry. This month, Harbinger filed a $1.9 billion lawsuit against Deere, Trimble and other members of the GPS industry, claiming the defendants didn’t disclose potential interference problems between the spectrum and GPS equipment. The complaint was filed in U.S. District Court in Manhattan.