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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV