ATC
LightSquared’s Falcone under SEC Investigation

For LightSquared founder Philip Falcone, a man who has seen his 2008 assets of $28 billion dwindle to less than $5 billion today, having the Securities and Exchange Commission hound him for mishandling the payment of his 2009 personal federal and state taxes of $113 million must be a bit irksome. The SEC alleges that Falcone borrowed the money (the SEC said “fraudulently”) from his investors’ deposits. He did, however, pay it back, with interest, in 2011. Unfortunately, that was after the SEC had started to investigate allegations that he had also improperly resisted attempts by some investors to remove money from one of his hedge funds, while allowing other investors to do so. The SEC wants to bar him from serving as an officer or a director of any U.S. public company and impose a hefty fine. No date for a hearing has been announced.