Saturday, 27 December 2014
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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.