Posted at: 05/09/2013 2:47 PM
Updated at: 05/10/2013 10:35 AM
WASHINGTON (AP) - Billionaire hedge fund manager Philip Falcone and his firm have agreed to pay $18 million to settle civil fraud charges that he used fund money to pay his taxes and favored some clients over others.
Falcone, a native of Chisholm, would be barred for two years from working as an investment adviser or broker under the agreement in principle between the Securities and Exchange Commission and Falcone and Harbinger Capital Partners, the firm said in a filing Thursday.
Falcone could continue to own New York-based Harbinger Capital. But it would be overseen by an independent monitor. Falcone couldn't make investments for the fund or raise money for it.
The agreement must be formally approved by a majority of the SEC commissioners. The SEC had sued Falcone and Harbinger in June.
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