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Bailey McCann, Opalesque New York:

Harbinger Capital Partners Offshore Manager, the offshore arm of hedge fund Harbinger Capital Partners has come to a tax agreement with New York State tax authorities.

According to New York Attorney General Barbara Underwood, the offshore fund earned incentive fees from successful trading that it conducted from an office in New York City. This income was subject to New York State income tax and New York City unincorporated business tax - however that activity was shielded from local officials.

According to the settlement agreement managers of the offshore firm admitted that taxes were owed.

The investigation leading to the settlement announced today began with a whistleblower lawsuit filed in March 2015 under the New York False Claims Act. The Act, which expressly covers tax fraud, allows whistleblowers and the government to take legal action against companies or individuals that defraud the government. The settlement follows an earlier $40 million settlement in this investigation, concluded in April 2017, with Harbert Management Corporation, the Alabama-based investment management company that sponsored and organized the principal hedge fund managed by Offshore Manager. As a result, a total of $70 million will be recovered.

Offshore Manager's investment activities were led by Philip Falcone. Most of the firm's activities were conducted from an office on Madison Avenue in New York. However, income was reported from......................

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