Hedge fund manager Philip Falcone and his firm Harbinger Capital Partners have admitted to market manipulation and other misconduct as part of an $18 million settlement with the U.S. Securities and Exchange Commission.
In a consent order issued Monday, Falcone acknowledged that he violated federal securities laws by loaning himself $113 million to pay a tax bill and by favoring redemption requests by certain hedge fund clients. Falcone agreed to a five-year ban from the securities industry as part of the deal. He'll personally pay $11.5 million in fines and disgorgement, while Harbinger Capital will pay a $6.5 million penalty.
