Posted at: 07/20/2013 3:41 PM
Updated at: 07/21/2013 7:47 AM
WASHINGTON (AP) - The Securities and Exchange Commission has rejected an $18 million settlement that would have banned billionaire hedge fund manager Philip Falcone from the securities industry for two years.
Falcone and Harbinger Capital Partners were told Thursday that SEC commissioners voted down the settlement, according to a filing Friday by parent company Harbinger Group Inc. The deal had been proposed in May by the SEC's enforcement staff.
The deal sought to settle civil fraud charge by fining Falcone and his firm $18 million. The SEC has accused Falcone and the firm of using fund money to pay his taxes and favoring some clients over others.
Harbinger's filing didn't say why the deal was rejected. SEC votes on enforcement actions occur in closed sessions.
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