SEC Drops Falcone’s $18M Fraud Deal

Law360, Chicago (July 19, 2013, 1:46 PM EDT) -- The U.S. Securities and Exchange Commission has scuttled an $18 million proposed settlement of two separate suits accusing Philip Falcone and his hedge fund Harbinger Capital Partners LLC of fraud, the firm said in a securities filing on Friday.

Harbinger said it was informed late Thursday that the agency’s commissioners voted against the settlement, which also included a stiff two-year industry ban for Falcone but did not require him or Harbinger to admit any wrongdoing. The filing did not give any indication as to why the SEC rejected the deal.

The aborted deal would have resolved two suits brought by the...

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