Phil Falcone Rejected The SEC Offer To End His Career

Phil Falcone rejected a SEC settlement offer that would have “banned him from the securities industry and essentially ended his career”, according to WSJ.

The SEC offer is a multiyear ban that would bar Mr. Falcone from directly running his hedge fund, including barring him from managing assets in his funds. Furthermore, it may even threaten Falcone’s bet on LightSquared.

“The SEC’s push for a multiyear ban on the 49-year-old billionaire from the hedge-fund industry is a sign of how seriously agency officials view alleged misconduct by Mr. Falcone that is now being investigated”, wrote WSJ.

Earlier this month, Philip Falcone and two other manager from Harbinger was alleged by the government for violating federal securities laws’ anti-fraud provisions.  The regulator looked into the issues “regarding the circumstances and disclosure related to agreements with certain fund investors.” according to Harbinger’s filing.