Green Room

SEC bans LightSquared figure from trading for 5 years

posted at 1:14 pm on August 20, 2013 by

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.

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18 million penalty. lol. what a joke. How bout banning him for life from his chosen career?

These hedge fund shysters are worse than crack dealers. They should serve hard time in high security prisons.

rickyricardo on August 20, 2013 at 1:27 PM

“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.

Where’s DOJ to prosecute this a-hole?

Oh, that’s right. He’s one of Obama’s favorite donors.

My bad.

Bitter Clinger on August 20, 2013 at 2:02 PM

And on top of that, Falcone is suing GPS manufacturers and user groups, blaming them for the failure of LightSquared because they didn’t tell him his planned network would interfere with navigation. Which is pretty laughable since LightSquared was pressuring the FCC to change the bandplan to allow his network to operate, and that bandplan was put in place specifically to prevent interference to navigation.

Socratease on August 20, 2013 at 3:54 PM

However, his reputation and track record certainly might.

No it won’t for his politics are more important than any illegal activity he engages in, that is the leftist way.

TQM38a on August 20, 2013 at 8:38 PM