Harbinger probed over CEO loan

Robert Clark
16 Nov 2010
00:00
News
Daily News

Harbinger Capital, the aggressive fund behind a $7 billion (€5.1 billion) 4G network in the US, is under investigation by securities officials over a loan to CEO Philip Falcone.

The SEC and the US attorney’s office in Manhattan are investigating whether Harbinger properly disclosed a $113 million personal loan to Falcone in October last year, FT.com reported Monday.

Falcone said in an email to Bloomberg that the loan had been “documented and audited by outside accountants and legal advisers and was done in accordance with our documents.”

News of the probe follows the revelation last week that Harbinger had been

forced to assure investors that it had no plans to liquidate its main fund.

Goldman Sachs, the Blackstone Group and other investors are reported to have requested their money back in early October.

The fund - Harbinger Capital Partners Fund – slid 15% in value through to October 15, Bloomberg reported on the weekend. About 90% of the fund’s $3.4 billion in assets are wireless or other telecom investments.

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