Falcone Repays Troublesome Loan

Mar 22 2011 | 11:59am ET

Philip Falcone has repaid the controversial loan he took from one of his own Harbinger Capital Management hedge funds, a move that sparked investor grumbling and two investigations.

Harbinger on March 11 removed the lien on some of Falcone's assets that it had placed when Falcone took the $113 million loan from Harbinger's flagship Special Situations fund in October 2009. Falcone used the loan to pay off an unexpected tax bill; last year, he explained that he needed the loan because most of his own fortune is invested in Harbinger.

"It's not like I have $113 million in my checking account," he told The New York Times.

Falcone had paid back more than half of the loan by the end of last year—with Harbinger investors earning a tidy profit—and had until October 2014 to pay off the rest.

But the move still sparked a Securities and Exchange Commission probe after investors—who we barred from redeeming from Harbinger at the time—complained. Federal prosecutors were also looking into Falcone's loan, as well as into whether the hedge fund gave some investors preferential withdrawal terms.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.