SEC Charges LightSquared Backer With Fraud
Illegal Trading, Revenge, Market Manipulation
One-time wireless broadband hopeful LightSquared isn't having a particularly great year, with no product, no necessary FCC waiver, and no future. Now the primary financial architect of the project, Philip Falcone, is facing new SEC fraud charges
alleging he misused client funds, manipulated financial markets and betrayed investors. The investigation has been underway for some time
, and found that Falcone used $100 million from a hedge fund he advised to pay his personal taxes, attempted to illegally manipulate the market to get revenge against other investors, and participated in illegal trades tied to three public offerings of stock. Falcone's lawyer insists the charges are "neither supported by the facts or the law," and that any lawsuit will be "contested vigorously."