Precy Dumlao, Opalesque Asia:
Troubled hedge fund manager Philip Falcone sold 18.6 million shares of Harbinger Group worth $158m to Leucadia National Corp., to meet redemption requests from investors after reaching a settlement with U.S. Securities and Exchange Commission.
According to a Bloomberg report, publicly traded holding firm Harbinger which is run by Falcone, sold the shares at $8.50 each. With the deal, Leucadia is now the second largest shareholder at Harbinger which offers life insurance and pet supplies.
Bloomberg said Harbinger spokesman at RLM Finsbury Steven Goldberg refused to comment on the agreement. Laura Ulbrandt, a spokeswoman for Leucadia, did not immediately return a call, the report said.
In August, the 51-year-old Falcone agreed to settle with the SEC, which includes a five year ban from the financial industry, payment of $18m in fines and an admission of wrongdoing for using money from his hedge fund to repay his personal income tax and improperly favoring some investors.
The SEC filed enforcement actions in June 2012 alleging that Falcone improperly used $113m in fund assets to pay his personal taxes, secretly favored certain customer redemption requests at the expense of other......................
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