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Bailey McCann, Opalesque, New York: The Securities and Exchange Commission (SEC) may sue the CEO of US-hedge fund Harbinger Capital over claims he improperly borrowed client money from his hedge fund to pay his taxes and gave preferential treatment to Goldman Sachs Group Inc., according to a Bloomberg account. The SEC has voted to authorize an enforcement action against Falcone but the terms of that action are not public, the news agency reports.
Falcone has said that he is prepared to fight any lawsuit brought by the regulator or another party. Falcone and his fund have been under fire since the US Government put a stop to broadband deployment activities of LightSquared, a wireless technology firm that was Harbinger's biggest investment. The company recently came to an agreement in court with some of its biggest lenders about how it will use its cash after recently filing for bankruptcy.
Harbinger has also sought a new loan from MSDC Management LP, the firm which manages Michael Dell's money to replace an earlier loan from Jefferies which was set to mature in the near term at the extr...................... To view our full article Click here
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