SEC bans LightSquared figure from trading for 5 years
posted at 1:14 pm on August 20, 2013 by Ed Morrissey
Remember the LightSquared scandal? It’s been lost in the avalanche of other scandals this year, especially after filing for bankruptcy in May 2012. The man who tried to twist arms at the FCC to get a special slice of bandwidth for his own 4G service has now been barred from trading by the SEC for five years (via JP Updates):
Hedge fund titan Philip Falcone has been banned from the securities industry for at least five years, the Securities and Exchange Commission said on Monday.
Also, Falcone and his hedge fund Harbinger Capital have agreed to pay more than $18 million and admitted wrongdoing.
The SEC accused Falcone of several instances of misconduct while operating Harbinger Capital. Among them: improperly using $113 million of his client’s funds to pay his personal taxes, favoring the redemption requests of certain clients over others and manipulating bond prices.
“Falcone and Harbinger engaged in serious misconduct that harmed investors, and their admissions leave no doubt that they violated the federal securities laws,” said Andrew Ceresney, co-Director of the SEC’s Division of Enforcement.
Falcone blamed his actions on bad legal advice, but the SEC replied that the bad advice resulted at least in part from Falcone’s lack of accurate communications with his lawyers.
Falcone says he’s still going to try to bring back LightSquared from the dead, and the SEC ban won’t impact that effort. However, his reputation and track record certainly might.
Previous LightSquared posts:
- Bombshell: General accused WH of pressuring him to change testimony for Democratic donor
- Did Obama’s former investment play role in pressuring 4-star general to change testimony?
- White House offered “guidance” to second witness in LightSquared inquiry
- LightSquared disrupts 75% of GPS receivers in gov’t testing
- SEC warns LightSquared figure of potential fraud probe
- Why is the FCC stonewalling Grassley on LightSquared?
- LightSquared lobbyists pushing MN legislators to demand action from Klobuchar, Franken
- LightSquared flunks again
- Grassley: I’m not backing down on FCC holds until I get the LightSquared documents
- LightSquared “running out of cash”
- LightSquared to FCC: Quit screwing around and give us the approval
- LightSquared’s political efforts doomed to failure?
- Sprint to LightSquared: You’ve got 30 days to get FCC approval or we walk
- Advisory board: LightSquared can’t be fixed
- Grassley: LightSquared offered me a political “win” in exchange for backing down on FCC probe
- Lights out for LightSquared
- LightSquared the FCC’s Solyndra?
- Did the FCC try to drive a LightSquared competitor into bankruptcy?
- LightSquared CEO resigns after FCC failure; Update: House panel to open probe? Update: Grassley statement added
- Sprint bails on LightSquared