Philip Falcone and his hedge fund Harbinger Capital Partners agreed to pay $18m to resolve civil allegations by US regulators that he misused customer funds to pay his taxes, manipulated markets and gave favourable treatment to certain clients.
Mr Falcone also agreed to a two-year bar from acting as an investment adviser, according to a regulatory filing made by Harbinger. In the filing, the firm said Mr Falcone can continue to act as chief executive and chairman of Harbinger but cannot make investment decisions. Harbinger is also prohibited from raising new funds or making capital calls from existing investors for the two-year period.
The settlement was reached with the staff of the Securities and Exchange Commission on April 22 but requires the approval of the five-member commission before it is finalised.