LightSquared's Falcone Banned From Trading
by Karl Bode 08:11AM Tuesday Aug 20 2013 Tipped by WHT
LightSquared backer Phil Falcone isn't having a particularly great few years. Last year his plan to build a massive LTE network under the LightSquared brand was crushed after the FCC denied the company's ability to use certain spectrum
that would interfere with GPS technology. He's spent his time since begging the FCC (without any luck) to reconsider, while battling with Charlie Ergen
over the remaining company scraps. Falcone has now been banned from trading for five years
for violating a number of securities laws. Falcone and Harbinger Capital admitted wrongdoing and agreed to pay more than $18 million in fines.
Just another scam artist using OPM to get rich Falcone was just another big money scam artist who used Other People's Money to enrich himself and then returning nothing to those he scammed. He should be in prison and not just paying fines to the SEC.
"If you want to anger a conservative lie to him.
If you want to anger a liberal tell him the truth."
Banned from Trading What does this really mean? If he just trades through a proxy, what punishment is this?
According to a CNN report, he's not taking responsibility for his actions but instead blaming poor legal advice:
"Unfortunately I had some poor legal advice along the way and instead of questioning it, I followed it."
Of course from the same story, the SEC has a different view:
The SEC says that, regardless, Falcone should not have relied upon Sidley Austin's guidance because his firm did not give its lawyers correct information to begin with.
$11.5M isn't even 1% of his $1.2B fortune so it's hard to agree with the SEC that this is a "heavy price".
In its statement, Ceresney of the SEC called the settlement and surrendering of millions of dollars a "heavy price" for Falcone. The hedge fund manager will personally pay $11.5 million. For him, that amounts to a tiny portion of his vast fortune, which Forbes Magazine pegged at $1.2 billion in March.
To put that in perspective, this is like asking someone who is worth $100K to pay a $950 fine. Even this comparison isn't entirely fair because $950 is real money to someone with $50K of equity in their house, $40K of 401K and perhaps $10K equity in two cars. Such a person still has bills to pay whereas this joker won't make any lifestyle changes. If his investments return a modest 4%, he'll recover that loss in one quarter.
Re: Um, If I "appropriated" $113,000,000 of OPM I'd be
said by KrK:He is VERY heavy (the heaviest at one time) financial supporter of Obama and the DNC. Nuff said?
Explain to me how that's not considered criminal.
If you can take 113 and pay a fine of 18 that sounds to me like one hell of investment, don't you think?
"when the people have suffered many abuses under the control of a totalitarian leader, they not only have the right but the duty to overthrow that government." - The U.S. Declaration of Independence
Re: Um, If I "appropriated" $113,000,000 of OPM I'd be Think about it a bit... you'll figure it out, as most have...