Billionaire Philip Falcone gets a slap on the wrist for SEC crimes related to “manipulating the market, using hedge fund assets to pay his taxes, and ‘secretly’ favoring select customers (Goldman Sachs, HSBC and Pamco) at the expense of others.”
The SEC has fined Falcone $18 million and banned him for two years from raising new capital. However, SEC failed to include “fraud injunctions,” which are normally included in such cases.
Investors, who trusted Falcone lose their livelihood, homes, and life time savings, but Falcone pays “pennies” and is only prohibited from defrauding new investors for two years.
It’s another sorry example of too rich and well connected to jail and the failure of the SEC to do its job.
Follow the link to the NYT, “Falcone Agrees to 2-Year Ban in Deal with SEC,” regading Philip Falcone and the SEC settlement.