Monday, 25 May 2015
Last updated 2 days ago
Jul 29 2014 | 2:35pm ET
Harbinger Capital Partners’ former chief operating officer has settled Securities and Exchange Commission fraud allegations, closing the book on a case that cost firm founder Philip Falcone the right to run a hedge fund.
Peter Jenson agreed to pay $200,000 and admitted wrongdoing for helping Falcone take a $113 million loan from Harbinger hedge funds to pay his tax bill. The loan was not disclosed to investors.
Jenson also accepted ban from the securities industry of at least two years.
The deal with Jenson comes almost a year after Harbinger and Falcone struck a settlement of their own, paying $18 million to cover the loan allegations, as well as several other fraud charges. Prior to reaching that agreement, Falcone, who accepted a five-year ban, had blamed Jenson for the loan, saying that the former COO and two lawyers approved the arrangement. Jenson, who left Harbinger in 2011, responded that Falcone hadn’t been completely honest about the loan and eventually ignored his advice.
“Jenson assisted a fraudulent scheme that allowed Falcone to put his own interests ahead of investors by engaging in a related-party loan on favorable terms,” the SEC’s Julie Riewe said. “We hold accountable not only those who perpetrate a scheme, but also those who enable them.”
Jenson’s accord with the SEC still requires the approval of a federal judge.
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…