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Our Law Firm is investigating potential claims on behalf of investors of Harbinger Capital, a hedge fund managed by Philip Falcone. It was recently revealed that the SEC sent Falcone, his firm and two associates Wells Notices, stating that it intends to recommend or is considering recommending that the SEC file civil actions against them. The SEC’s investigation into Harbinger focuses in part on a loan of over $100 million that one of the Harbinger funds made to Falcone in 2009. Allegedly, Falcone took this loan to help pay taxes without notifying investors. Further, the SEC is looking into whether some Harbinger investors received preferential treatment over others. The Wells Notices reportedly discuss issues relating to whether Harbinger allowed some clients, including Goldman Sachs, to withdraw money while at the same time barring others.
In addition to facing possible action from the SEC, Harbinger Capital’s assets have declined substantially in recent years. Just three years ago, the fund had assets of $26 billion. Today the fund is said have assets of just $5.7 billion. Further, the fund’s significant investment in LightSquared, LP may be running into trouble, and the wireless technology company faces regulatory problems. Harbinger has stated that it “anticipates” withdrawals from its main hedge fund will be suspended effective December 30, 2011.
If you are a Harbinger Capital investor, please contact KlaymanToskes to explore your legal rights and options.