The future of billionaire hedge-fund manager Philip Falcone was up in the air after a proposed $18m settlement with the U.S. Securities and Exchange Commission was rejected by Chairman Mary Jo White as too lenient, according to two people with knowledge of the matter.
Bloomberg News reports that White, a former Wall Street defense lawyer, and Democrats Luis A. Aguilar and Elisse B. Walter, in a 3-to-1 vote, were concerned that Falcone wasn’t barred from serving as officer or director of a public company, said the people, asking not to be named because the deliberations aren’t public.
The SEC informed Falcone’s Harbinger Capital Partners LLC of the decision Thursday, according to a filing from Harbinger Group.
Under the agreement, Falcone would have been barred for two years from investing client money to settle claims that he improperly borrowed money from his fund to pay personal taxes. It would have allowed Falcone to remain chief executive officer of Harbinger Group.
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