Harbinger Capital Discloses SEC Probes

Hedge fund manager, Philip Falcone, has provided details on three U.S. government investigations being conducted into his firm, Harbinger Capital Partners.

Hedge fund manager, Philip Falcone, has provided details on three U.S. government investigations being conducted into his firm, Harbinger Capital Partners, The Wall Street Journal reports. The Securities and Exchange Commission (SEC) is investigating whether Falcone’s firm violated a short-selling rule involving three stocks and whether it engaged in market manipulation in unnamed debt securities.

Since November, the SEC was probing whether Harbinger misled investors by failing to disclose in a timely fashion a $113 million personal loan it extended to Falcone from the firm’s funds. The loan was repaid in full by the end of 2010. Separately, Falcone paid $60 million to settle a lawsuit with NACCO Industries.

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