Go figure. According to the NY Post report hedge-fund honcho Phil Falcone — accused of taking out an improper $113 million loan to pay a personal tax bill — plans to fight the charges by arguing that his other options carried greater risks for investors.
On Thursday, the Securities and Exchange Commission slapped
Falcone with civil fraud charges, accusing him of spending up a storm in 2009
despite the looming tax bill — and then dipping into a fund he had just barred
investors from tapping. The SEC claimed Falcone could have borrowed against his
personal assets but didn’t want to crimp his lavish lifestyle.
The first glimpse of Falcone’s defense strategy reveals the
49-year-old founder of Harbinger Capital Management plans to knock down the
allegations by claiming that the alternatives, such as withdrawing his money
from another fund, could have created even bigger headaches for investors,
according to a person familiar with Falcone’s thinking.
No comments:
Post a Comment