Tuesday, 5 May 2015
Last updated 3 hours ago
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.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…