Insurance news made with Falcone fund manager ban

New York Insurance news

U.S. regulators have banned him from the coverage and securities industry for five years.

The latest insurance news has just been released, revealing that Philip Falcone, the hedge fund manager, has now been banned by U.S. regulators from the securities industry for a period of five years.

Further bans were also put into place beyond this wide reaching one, in New York.

The bans making the insurance news also include prohibiting Falcone from any decision making roles at a unit of his firm, Fidelity & Guaranty Life Insurance. This, according to officials in New York. The New York State Department of Financial Services released a statement that said the man is “banned during that period from serving as an officer or director of Fidelity & Guaranty Life and its subsidiaries or any New York-licensed insurer, as well as participating in the selection of any such officers or directors.”

New York Insurance newsThe insurer is a unit of Harbinger Group, of which Falcone’s company is the majority owner, hence the insurance news.

Harbinger Capital is owned by Falcone, which owns the majority of the Harbinger Group, of which Fidelity & Guaranty Life is a unit. The most recent insurance news from that unit is that it intends to sell its shares to the public. The new agreement regarding Falcone does not require him to sell any of the interest that he owns in the insurer. It removes him only from making any decisions within the company.

_________________________

Random Quotes to Remember ~ “Even if you are on the right track, you’ll get run over if you just sit there.” – Will Rodgers

_________________________

Beyond those bans, the insurance news has shown that Falcone is also not permitted to exercise “direct or indirect control over the management, policies, operations, and investment funds” of the insurer or any other provider licensed within New York, said a state agency press release. That particular ban also applies to Harbinger Capital Partners employees.

Falcone has admitted that he played a role in the wrongdoing and has agreed, as of August, to a fine of $18 million, which he will pay to the U.S. Securities and Exchange Commission as a part of a civil fraud suit settlement. In the insurance news form that case, he was accused, and admitted to improperly using money from Harbinger hedge funds and favoring some of his own investors.

Related posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.