Falcone to Face SEC Lawsuit: Report
Story updated with a comment from Phillip Falcone's attorney.
NEW YORK (TheStreet) -- The Securities and Exchange Commission is reportedly set to file a lawsuit against Harbinger Capital Partner founder Phillip Falcone.
According to Bloomberg News, the regulator plans to claim that Falcone illegally borrowed client money to pay taxes and created a sweetheart deal with Goldman Sachs to exit his flagship fund.
SEC commissioners have voted to allow the staff to move ahead and file a lawsuit, Bloomberg says, citing anonymous sources close to the matter. The sources added that the SEC may also push for "market manipulation" charges against the billionaire hedge fund guru in relation to bond investments in MAXX Holdings group.
Harbinger Group Phil Falcone
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