{"id":29857,"date":"2012-07-02T05:53:01","date_gmt":"2012-07-02T09:53:01","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=29857"},"modified":"2012-07-03T03:14:26","modified_gmt":"2012-07-03T07:14:26","slug":"controversial-hedge-fund-manager-charged-by-sec","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/07\/2012\/controversial-hedge-fund-manager-charged-by-sec.html","title":{"rendered":"Controversial Hedge Fund Manager Charged By SEC"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2012\/07\/falcone_9.19.11.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-29858\" title=\"falcone_9.19.11\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2012\/07\/falcone_9.19.11.jpg\" alt=\"\" width=\"216\" height=\"226\" \/><\/a>New York (HedgeCo.net) &#8211; The hedge fund\u00a0manager\u00a0who challenged the US wireless broadband connectivity\u00a0system by launching a cheaper alternative has been under investigation by the SEC for alleged\u00a0manipulation of bond prices and favoring certain clients over others.<\/p>\n<p>The SEC said that\u00a0Philip Falcone, through his hedge fund Harbinger Capital Partners LLC, had \u201cfraudulently obtained $113.2 million from a hedge fund that he advised and misappropriated the proceeds to pay his personal taxes.\u201d Falcone took out a loan against his hedge fund in 2009.<\/p>\n<p>\u201cThe notion that Mr. Falcone committed a fraud in connection with the loan from a Harbinger fund is unsupportable,\u201d Falcone&#8217;s lawyer said. \u201cThe loan was obtained after receiving considered written legal advice from a leading national law firm on the basis of fully disclosed facts; that same firm proposed the idea of the loan, structured the transaction, documented it, advised on the timing and form of disclosure to investors, and explained it when investors made inquiries.The investors were fully paid back with interest.\u201d<\/p>\n<p>National broadband network\u00a0company\u00a0LightSquared, one of\u00a0Falcone&#8217;s companies, had to declare\u00a0bankruptcy\u00a0earlier this year when the\u00a0FCC recommended the reversal of the license that it granted in 2004,\u00a0the\u00a0National Telecommunications and Information Administration said that it would interfere with the current GPS systems.\u00a0LightSquared is challenging the FCC&#8217;s proposals.<\/p>\n<p>The SEC is seeking to ban Philip Falcone from serving as an officer or director of any public company, along with unspecified penalties and restitution.<\/p>\n<p>Alex Akesson<br \/>\nEditor for <a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a> is a premier <a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a> and community for qualified and accredited investors only. Membership in <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.net) &#8211; The hedge fund\u00a0manager\u00a0who challenged the US wireless broadband connectivity\u00a0system by launching a cheaper alternative has been under investigation by the SEC for alleged\u00a0manipulation of bond prices and favoring certain clients over others. The SEC said that\u00a0Philip [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,12,3],"tags":[],"class_list":["post-29857","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedge-fund-regulation","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/29857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=29857"}],"version-history":[{"count":6,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/29857\/revisions"}],"predecessor-version":[{"id":29868,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/29857\/revisions\/29868"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=29857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=29857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=29857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}