Harbinger being probed by SEC: filing

By @ibtimes on

Billionaire hedge fund manager Philip Falcone recently gave investors a little more information about three government investigations into his Harbinger Capital Partners fund firm.

In a year-end financial statement, Falcone also disclosed for the first time that his $6 billion firm paid $60 million to settle a lawsuit with NACCO Industries.

Falcone said the Securities and Exchange Commission is probing whether his firm violated a short-selling rule involving three stocks and whether it engaged in market manipulation in unnamed debt securities, according to the statement sent to investors.

Reuters obtained a copy of the filing, which is private.

Rule 105 of Regulation M prohibits investors from participating in public offerings after having shorted the same securities.

Falcone said the probes are informal and assured investors that no criminal or enforcement charges have been brought against the firm. He also said the firm is cooperating with these investigations.

(Reporting by Svea Herbst-Bayliss and Matthew Goldstein)

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