Showing posts with label Harbinger Capital Partners. Show all posts
Showing posts with label Harbinger Capital Partners. Show all posts
Friday, February 3, 2012
Philip Falcone, Lightsquared. Senator Charles Grassley. Harbinger Capital, ATT Lobbyists, Verizon Conspired to STOP Lightsquared?
Labels:
FCC Probe,
GPS Industry Council,
Grassley vs. Lightsquared,
Harbinger Capital Partners,
Philip Falcone,
Senator Grassley
Sunday, September 11, 2011
Philip Falcone - Lightsquared, Harbinger Capital Partners, Why Did Philip Falcone Hire an Investigative Blogger ?
Philip Falcone - Harbinger Capital - Harbinger Capital Partners - Harbinger Group Inc. Hired an Investigative Blogger to Turn up Dirt on Insiders of the GPS Council and those in the Save the GPS Coalition in order to Affect Public Perception and Dig up reasons why they were "ganging up on Lightsquared".
Philip Falcone - Harbinger Capital - Harbinger Capital Partners, Lightsquared - Harbinger Group Inc, in my Opinion has connection in the FCC that are On "his side", and I believe that Philip Falcone - Harbinger Capital - Harbinger Capital Partners - Harbinger Group Inc, has connections with Intel's CEO Paul Otellini that gets Philip Falcone - Harbinger Capital Partners, Lightsquared - Political Favors, SEC Favors, FCC Favors, Special Treatment international in the Telecommunications Industry.
I believe, in my Opinion, that Philip Falcone of Harbinger Capital Partners, Harbinger Group Inc, and Lightsquared have connections with Goldman Sachs, JP Morgan and Credit Suisse that are way more then meets the eye and go way back to the Billions made in the Secondary Mortgage Market. And I Believe that these connections get political favors still today.
I believe, in my Opinion, that Philip Falcone of Harbinger Capital Partners, Harbinger Group Inc, and Lightsquared has been involved in many dealings within the US Bankruptcy Courts that need to be EXPOSED to the light. I Believe there is alot more to the Larry Strickling, Motorola Connection and many other things that Philip Falcone of Harbinger Capital Partners, Harbinger Group Inc, and Lightsquared have been accused of in the last year.
Please eMail Me If YOU Have a Tip
on ANYTHING on this Post.
Crystal@CrystalCox.com
Did Harbinger Capital Partners - Lightsquared Philip Falcone Hire an Investigative Blogger to Manipulate the FCC, GPS Council, Gently and Partially Expose NTIA members (but not to much Exposure), to expose Alan Kahn as a Serial Plaintiff to discredit Alan Kahn and alter public perception of the spectrum usage?
Did Philip Falcone, Harbinger Capital Partners - Lightsquared Philip Falcone hire an investigative blogger to take over the search engines for what he wanted found by those looking for Lightsquared or any Spectrum Usage Issues?
What is the Real Story with the Political Favortism, Friends at the SEC, and other Political Fraternity and Favors Owed ?
Why did Philip Falcone SEEM to want .. to Go Easy on the "Intel CEO", and Intel is connected to the iViewit Stolen Technlogy as far as it seems to me and so is Curtis Lu, the Now General Counsel of Lightsquared that was the General Counsel of Time Warner Inc. Here is a Link to Intel Corp. Involvement with the iViewit Technlogy Theft and Usage.
http://www.industrywhistleblower.com/2011/02/open-letter-to-intel-corp-board-of.html
More Coming Soon regarding Philip Falcone, Harbinger Capitol and Andrew Hamerling, James Kirkland, Craig McCaw, Deere and Company, and Trimble Navigations.
What does Harbinger Capital Partners - Lightsquared Philip Falcone have to say about Kenneth Boehm, about the Owner of LightsquaredSucks.com ( not ME), about the Spectrum Usage, Conflicts of Interest with James Kirkland and Clearwire, and the GPS Issues in General?
*****
More Coming Soon on Philip Falcone, Lightsquared "Offering" to Limit the Power
from It's Signal, more on the Supporting the Hurricane yet Interference with Weather Equipment.
More on Philip Falcone knowing that no way would Lightsquared Fail or why would Philip Falcone, Harbinger Capital put Billions at Stake. You would have to, IN MY OPINION, have an in with a few politicians, someone at the FCC, Someone at NTIA, and well a few Senators, Congressman and overseas officials sure don't hurt, RIGHT ?
Information coming soon on the possible and "Alleged" connections and why with... Miles Rubin and Coda, on the connections of Terrastar Bankruptcy's, Lucent, Echostar, Politicians and Lobbyists, Satelitte Contracts unDisclosed, Middle East Deals, Phillipine and International Internet Providing Deals, Political Favortism with US Officials and Orange, Political Favors in the Philippines, Kathleen Murphy Connections, Credit Suisse, Goldman Sachs, JP Morgan, Crutch and Dunn Law Firm in All this ......
More about Recent 'Fires', and New Hires .. Lightsquared - Harbinger Capital Partners.
Information and More Background on Sanjiv Ahuja, Curtis Lu, Larry Strickling, Peter Jenson, Steve Olive, Steve Glaze, Kenneth Boehm, Keith Hladek, Phillip Humm, Hugh Rovit, Anthony Genito, Marc Kirschner,
.. More on Spectrum Brands, the FCC Supposed Probe, GPS Interference Issues, FCC Chairman Julius Genachowski, Hurricane Tracking Equipment, Congressional Science Committee Hearing,U.S. House Science, Space and Technology Committee, Transportation Department and the National Aeronautics and Space Administration, North American Energy Partners, Inc. (NYSE: NOA) ,Harbert Management Corporation, Charlie Ergen and the multiple bankruptcy cases surrounding Terrastar, Loral Space and many others that seem to affect all this and certainly affect the prices of stocks.
Is there really a Spectrum Shortage? What is the Real Story on the issue many say that Philip Falcone Harbinger Capital Partners got the "Spectrum" for FREE ??
When Did Philip Falcone, Harbinger Capital Partners Begin to Suspect interference from Verizon and ATT and possibly their Lobbyists?
Why does Philip Falcone, Harbinger Capital seem to feel Curtis Lu is innocent in the iViewit Stolen Technology Scandal as the Formor General Counsel of Warner Bros, Time Warner Inc. Whom seems to me to be guilty of using, stealing a 13 Trillion Dollar Patent
Click on Link Below for More on iViewit and Time Warner and the Case of a 13 Trillion Dollar Stolen Technology, and the fact, as proven from taped phone calls online and email documentation from iViewit, Curtis Lu talked with Eliot Bernstein Founder of Iviewit Technologies and one of the iViewit Inventors, just before Curtis Lu left Time Warner as their Genera Counsel and is Now the General Counsel of Lightsquared, whom Philip Falcone "thinks" is a Good Guy.
Philip Falcone Believes that James Kirkland is somehow guilty by association, as James Kirkland was the General Counsel of Clearwire Corp. and is Now the General Counsel of Trimble Navigations and James Kirkland is head "Outspoken" One of the GPS Council and the Fight for "Save our GPS". YET Somehow this Double Standard by Philip Falcone, Harbinger Capital, Lightsquared seems to go unnoticed in regard to his chosen General Counsel of Lightsquared, Curtis Lu - who WAS knowledgeable of what seemed a Massive Shareholder Fraud and Failed to disclose this Fraud.
More on Time Warner Inc. and iViewit
http://www.investigativeblogger.com/2011/03/twx-open-letter-to-time-warner-warner.html
More Curtis Lu, Lightsquared General Counsel Links
http://www.curtislu.com/2011/02/curtis-lu-time-warner-inc-general.html
http://www.curtislu.com/search?updated-max=2011-02-22T18%3A49%3A00-08%3A00&max-results=7
Research what Curtis Lu, Lightsquared General Counsel knew and seemed to fail to disclose to shareholders, and auditors about this Massive Possible Fraud on Investors, and then decide if Curtis Lu, Lightsquared General Counsel will MOST Likely do the same thing to Harbinger Capital - Lightsquared Investors.
More Soon also on
~ "Omar Asali President Of Harbinger Group Inc." - Harbinger Capital Partners .. and the connections, affiliations and backstory..
And more soon on ..
* Philip Falcone while he was at Barclays Capital
* How did Philip Falcone KNOW to bet against the Secondary Mortgage Market? What does Kathleen Murphy, Credit Suisse, and Goldman Sachs have to do with any inside information Philip Falcone, Lightsquared, Harbinger Capital
The New York Times Company, Cleveland-Cliffs, Inmarsat, SkyTerra and Terrestar,and British sugar producer Tate & Lyl.. and how all of this affects you in this PUSH for Spectrum to Make Billionaires Even More Billions.
What is the Truth of HBOS and the Philip Falcone Connection?
**********
All information will Be Posted Coming Soon at
Philip Falcone .com
http://www.philipfalcone.com/
Posted Here by
Crystal L. Cox
Investigative Blogger
Crystal@CrystalCox.com
Please eMail Me If YOU Have a Tip on ANYTHING on this Post.
Philip Falcone Research Links
http://www.investigativeblogger.com/2011/02/is-credit-suisse-right-on-suggesting.html
http://www.sanjivahuja.com/
http://www.investigativeblogger.com/search/label/Philip%20Falcone
http://www.sanjivahuja.com/2011/02/ad-hoc-group-senior-secured-payment-in.html
http://www.larrystrickling.com/2011/03/ken-boehm-on-philip-falcone.html
http://nlpc.org/sites/default/files/HarbingerLetter.pdf
Philip Falcone - Harbinger Capital - Harbinger Capital Partners, Lightsquared - Harbinger Group Inc, in my Opinion has connection in the FCC that are On "his side", and I believe that Philip Falcone - Harbinger Capital - Harbinger Capital Partners - Harbinger Group Inc, has connections with Intel's CEO Paul Otellini that gets Philip Falcone - Harbinger Capital Partners, Lightsquared - Political Favors, SEC Favors, FCC Favors, Special Treatment international in the Telecommunications Industry.
I believe, in my Opinion, that Philip Falcone of Harbinger Capital Partners, Harbinger Group Inc, and Lightsquared have connections with Goldman Sachs, JP Morgan and Credit Suisse that are way more then meets the eye and go way back to the Billions made in the Secondary Mortgage Market. And I Believe that these connections get political favors still today.
I believe, in my Opinion, that Philip Falcone of Harbinger Capital Partners, Harbinger Group Inc, and Lightsquared has been involved in many dealings within the US Bankruptcy Courts that need to be EXPOSED to the light. I Believe there is alot more to the Larry Strickling, Motorola Connection and many other things that Philip Falcone of Harbinger Capital Partners, Harbinger Group Inc, and Lightsquared have been accused of in the last year.
Please eMail Me If YOU Have a Tip
on ANYTHING on this Post.
Crystal@CrystalCox.com
Did Harbinger Capital Partners - Lightsquared Philip Falcone Hire an Investigative Blogger to Manipulate the FCC, GPS Council, Gently and Partially Expose NTIA members (but not to much Exposure), to expose Alan Kahn as a Serial Plaintiff to discredit Alan Kahn and alter public perception of the spectrum usage?
Did Philip Falcone, Harbinger Capital Partners - Lightsquared Philip Falcone hire an investigative blogger to take over the search engines for what he wanted found by those looking for Lightsquared or any Spectrum Usage Issues?
What is the Real Story with the Political Favortism, Friends at the SEC, and other Political Fraternity and Favors Owed ?
Why did Philip Falcone SEEM to want .. to Go Easy on the "Intel CEO", and Intel is connected to the iViewit Stolen Technlogy as far as it seems to me and so is Curtis Lu, the Now General Counsel of Lightsquared that was the General Counsel of Time Warner Inc. Here is a Link to Intel Corp. Involvement with the iViewit Technlogy Theft and Usage.
http://www.industrywhistleblower.com/2011/02/open-letter-to-intel-corp-board-of.html
More Coming Soon regarding Philip Falcone, Harbinger Capitol and Andrew Hamerling, James Kirkland, Craig McCaw, Deere and Company, and Trimble Navigations.
What does Harbinger Capital Partners - Lightsquared Philip Falcone have to say about Kenneth Boehm, about the Owner of LightsquaredSucks.com ( not ME), about the Spectrum Usage, Conflicts of Interest with James Kirkland and Clearwire, and the GPS Issues in General?
*****
More Coming Soon on Philip Falcone, Lightsquared "Offering" to Limit the Power
from It's Signal, more on the Supporting the Hurricane yet Interference with Weather Equipment.
More on Philip Falcone knowing that no way would Lightsquared Fail or why would Philip Falcone, Harbinger Capital put Billions at Stake. You would have to, IN MY OPINION, have an in with a few politicians, someone at the FCC, Someone at NTIA, and well a few Senators, Congressman and overseas officials sure don't hurt, RIGHT ?
Information coming soon on the possible and "Alleged" connections and why with... Miles Rubin and Coda, on the connections of Terrastar Bankruptcy's, Lucent, Echostar, Politicians and Lobbyists, Satelitte Contracts unDisclosed, Middle East Deals, Phillipine and International Internet Providing Deals, Political Favortism with US Officials and Orange, Political Favors in the Philippines, Kathleen Murphy Connections, Credit Suisse, Goldman Sachs, JP Morgan, Crutch and Dunn Law Firm in All this ......
More about Recent 'Fires', and New Hires .. Lightsquared - Harbinger Capital Partners.
Information and More Background on Sanjiv Ahuja, Curtis Lu, Larry Strickling, Peter Jenson, Steve Olive, Steve Glaze, Kenneth Boehm, Keith Hladek, Phillip Humm, Hugh Rovit, Anthony Genito, Marc Kirschner,
Terry Polistina, Miles Ruben - Coda, Virginia Kamsky, Kenneth Ambrecht, Jeffrey Carlisle, Dion Oglesby, Frank Boulben, Nathan Fagre, Leonard DiSalvo, Francis McCarron, Richard Hagerup, Kathleen K. Murphy, David Maura Coming Soon.
Is there really a Spectrum Shortage? What is the Real Story on the issue many say that Philip Falcone Harbinger Capital Partners got the "Spectrum" for FREE ??
When Did Philip Falcone, Harbinger Capital Partners Begin to Suspect interference from Verizon and ATT and possibly their Lobbyists?
Why does Philip Falcone, Harbinger Capital seem to feel Curtis Lu is innocent in the iViewit Stolen Technology Scandal as the Formor General Counsel of Warner Bros, Time Warner Inc. Whom seems to me to be guilty of using, stealing a 13 Trillion Dollar Patent
Click on Link Below for More on iViewit and Time Warner and the Case of a 13 Trillion Dollar Stolen Technology, and the fact, as proven from taped phone calls online and email documentation from iViewit, Curtis Lu talked with Eliot Bernstein Founder of Iviewit Technologies and one of the iViewit Inventors, just before Curtis Lu left Time Warner as their Genera Counsel and is Now the General Counsel of Lightsquared, whom Philip Falcone "thinks" is a Good Guy.
Philip Falcone Believes that James Kirkland is somehow guilty by association, as James Kirkland was the General Counsel of Clearwire Corp. and is Now the General Counsel of Trimble Navigations and James Kirkland is head "Outspoken" One of the GPS Council and the Fight for "Save our GPS". YET Somehow this Double Standard by Philip Falcone, Harbinger Capital, Lightsquared seems to go unnoticed in regard to his chosen General Counsel of Lightsquared, Curtis Lu - who WAS knowledgeable of what seemed a Massive Shareholder Fraud and Failed to disclose this Fraud.
More on Time Warner Inc. and iViewit
http://www.investigativeblogger.com/2011/03/twx-open-letter-to-time-warner-warner.html
More Curtis Lu, Lightsquared General Counsel Links
http://www.curtislu.com/2011/02/curtis-lu-time-warner-inc-general.html
http://www.curtislu.com/search?updated-max=2011-02-22T18%3A49%3A00-08%3A00&max-results=7
Research what Curtis Lu, Lightsquared General Counsel knew and seemed to fail to disclose to shareholders, and auditors about this Massive Possible Fraud on Investors, and then decide if Curtis Lu, Lightsquared General Counsel will MOST Likely do the same thing to Harbinger Capital - Lightsquared Investors.
More Soon also on
~ "Omar Asali President Of Harbinger Group Inc." - Harbinger Capital Partners .. and the connections, affiliations and backstory..
And more soon on ..
* Philip Falcone while he was at Barclays Capital
* How did Philip Falcone KNOW to bet against the Secondary Mortgage Market? What does Kathleen Murphy, Credit Suisse, and Goldman Sachs have to do with any inside information Philip Falcone, Lightsquared, Harbinger Capital
The New York Times Company, Cleveland-Cliffs, Inmarsat, SkyTerra and Terrestar,and British sugar producer Tate & Lyl.. and how all of this affects you in this PUSH for Spectrum to Make Billionaires Even More Billions.
What is the Truth of HBOS and the Philip Falcone Connection?
**********
All information will Be Posted Coming Soon at
Philip Falcone .com
http://www.philipfalcone.com/
Posted Here by
Crystal L. Cox
Investigative Blogger
Crystal@CrystalCox.com
Please eMail Me If YOU Have a Tip on ANYTHING on this Post.
Philip Falcone Research Links
http://www.investigativeblogger.com/2011/02/is-credit-suisse-right-on-suggesting.html
http://www.sanjivahuja.com/
http://www.investigativeblogger.com/search/label/Philip%20Falcone
http://www.sanjivahuja.com/2011/02/ad-hoc-group-senior-secured-payment-in.html
http://www.larrystrickling.com/2011/03/ken-boehm-on-philip-falcone.html
http://nlpc.org/sites/default/files/HarbingerLetter.pdf
Labels:
Alan Kahn,
ATT,
Craig McCaw,
Curtis Lu,
Harbinger Capital Partners,
Kenneth Boehm
Thursday, August 4, 2011
ATT Pressuring Local Elected Officials and Local Fire Chief to Pull Support from LightSquared ? Lightsquared, Philip Falcone, Harbinger Capital Partners
Phil Falcone - CNBC Interview - Philip Falcone - Harbinger Capital Partners - Lightsquared - ATT Lobbyist head of GPS Council ?
Source of Video of Philip Falcone, Lightsquared on ATT, Verizon, GPS Issues - Lightsquared - Harbinger Capital Partners.
Labels:
ATT,
Deere and Company,
GPS Council,
Harbinger Capital Partners,
LightSquared,
Philip Falcone
Saturday, July 23, 2011
Kathleen Murphy Harbinger - Harbinger Capital Partners - Kathleen K. Murphy - Harbinger Capital - Kathy Murphy
Kathleen Murphy Harbinger - Harbinger Capital Partners - Kathleen K. Murphy - Harbinger Capital - Kathy Murphy ~ Philip Falcone Harbinger, Philip Falcone Harbinger Capital, Kathleen Murphy Harbinger - Harbinger Capital Partners, Philip Falcone, Kathleen K. Murphy - Harbinger Capital - Kathy Murphy ? Email me about Kathleen Murphy Harbinger - Harbinger Capital Partners - Kathleen K. Murphy - Harbinger Capital - Kathy Murphy at Crystal@CrystalCox.com
Kathleen Murphy Harbinger - Harbinger Capital Partners - Kathleen K. Murphy - Harbinger Capital - Kathy Murphy - Philip Falcone Lightsquared - Philip Falcone
Thursday, February 3, 2011
Harbinger Capital Partners Invests in Coda Holdings Soon to Produce the Coda Sedan, an All Electric Vehicle. Miles Rubin.
"Southern California electric car and battery maker Coda Holdings has raised $76 million of new investments in preparation for the production of its all-electric flagship vehicle.
http://www.sfexaminer.com/news/2011/01/calif-company-raises-76m-toward-new-electric-car#ixzz1AJdEiWlw
The Santa Monica-based company said Wednesday that the new funds bring its total invested capital to more than $200 million as it looks to begin production of the four-door, five-passenger Coda Sedan and to develop its Lithium-Ion battery systems.
New investors in the company include Harbinger Capital Partners, and current investors who contributed include company founder and co-chairman Miles Rubin.
The company had planned to start selling the sedan in 2010 but has delayed the beginning of production until the second half of this year. "
Source of Harbinger Capital Partners - Coda Holdings - Miles Rubin Post.http://www.sfexaminer.com/news/2011/01/calif-company-raises-76m-toward-new-electric-car#ixzz1AJdEiWlw
Wednesday, November 24, 2010
Philip Falcone - Harbinger Capital Partners Fund - Harbinger Group - Spectrum Brands
"Philip Falcone Finds a New Way to Raise Money Harbinger's chief, facing investor redemptions, will use a shell company to pay for acquisitions
Philip Falcone, the hedge fund manager who made a fortune betting against subprime mortgages in 2007, has hit a tough patch. His flagship Harbinger Capital Partners Fund and another fund under his control have faced redemption calls from major investors anxious about the funds' investments in a wireless satellite network.
Harbinger Capital is also at the center of an investigation by the Securities and Exchange Commission and the Manhattan U.S. Attorney's office over a $113 million loan it gave to Harbinger Capital Partners founder and Chief Executive Officer Falcone to cover a tax bill, according to two people with knowledge of the probe. Falcone, who declined an interview request, said in an e-mail that the loan "was documented and audited by outside accountants and legal advisers."
Despite his troubles, the hedge fund manager has found a way to raise funds in a difficult environment. Falcone, 48, is selling stock and bonds through Harbinger Group (HRG), a publicly traded shell company.
On Nov. 15, Harbinger Group raised $350 million by selling five-year debt yielding 11 percent. Falcone plans to use the new capital to buy controlling stakes in industries from agriculture to telecommunications, according to a Nov. 1 filing by Harbinger with the SEC.
To back the bonds, Harbinger hedge funds plan to give Harbinger Group most of their majority stake in Spectrum Brands (SPB), a publicly traded company whose products include Rayovac batteries and George Foreman grills, in exchange for additional Harbinger Group Stock.
Most hedge funds raise money from institutional investors, such as pension funds, that can withdraw their money under certain circumstances. Owning a publicly traded company allows Falcone to pay for acquisitions by issuing stock. "Our corporate structure provides significant advantages compared to the traditional hedge fund structure for long-term holdings," Harbinger Group said in the Nov. 1 SEC filing.
Redemption calls are a worry now at Harbinger. Goldman Sachs (GS) plans to pull its entire $120 million investment from Harbinger Capital Partners following a 15 percent decline this year through mid-October and the disclosure about the personal loan to Falcone, according to people briefed on Goldman's plans.
Other investors such as Advantage Advisers Management, a subsidiary of Oppenheimer Asset Management, have also indicated they want out, according to regulatory filings. Falcone's New York-based firm's overall assets have declined to about $9 billion, as of September, from $26 billion in mid-2008.
Falcone has angered some clients by investing about 90 percent of his flagship Harbinger Capital Partners Fund and more than half his Special Situations Fund in wireless-telecommunications investments, as of September. He is trying to build a multibillion-dollar satellite wireless network that would take on entrenched players such as AT&T (T) and Verizon Communications (VZ) through a company he created called LightSquared.
Falcone is liquidating about 80 percent of the $2 billion Special Situations Fund at the request of clients, investors say. He's been trying since June to raise $1 billion to $1.5 billion for LightSquared from investors who would be willing to commit capital for several years, according to potential investors who have seen marketing documents.
In theory, Falcone could use shares of Harbinger Group, which is listed on the New York Stock Exchange (NYX), to meet redemptions in his hedge funds, says David Guin, head of the U.S. securities practice at law firm Withers Bergman in New York.
Harbinger spokesman Jeffrey Zelkowitz says the proceeds of the bond sale won't be used to cover redemptions or finance investments in LightSquared. "Rather, HGI is a permanent capital vehicle to house longer-term controlling equity stakes in companies that operate across a diversified set of industries."
Falcone created Harbinger Group last year, when three of Harbinger's hedge funds paid $74 million to acquire a 51.6 percent stake in Zapata, an oil driller with cash and no operating businesses that was co-founded by President George H.W. Bush.
Falcone reincorporated Zapata as Harbinger Group in December and later moved its headquarters to Manhattan from Rochester, N.Y. Having Harbinger Group gives Falcone a degree of freedom he doesn't have now, says Daniel Celeghin, a partner at Casey, Quirk & Associates, a Darien (Conn.)-based consultant to investment advisory firms: "Here is a pool of money you can manage indefinitely, and you don't have to worry about redemptions."
The bottom line: While dealing with investor redemptions, Falcone is raising capital through a public company he took over. "
Source of Post
http://www.businessweek.com/magazine/content/10_49/b4206051251677.htm
Philip Falcone, the hedge fund manager who made a fortune betting against subprime mortgages in 2007, has hit a tough patch. His flagship Harbinger Capital Partners Fund and another fund under his control have faced redemption calls from major investors anxious about the funds' investments in a wireless satellite network.
Harbinger Capital is also at the center of an investigation by the Securities and Exchange Commission and the Manhattan U.S. Attorney's office over a $113 million loan it gave to Harbinger Capital Partners founder and Chief Executive Officer Falcone to cover a tax bill, according to two people with knowledge of the probe. Falcone, who declined an interview request, said in an e-mail that the loan "was documented and audited by outside accountants and legal advisers."
Despite his troubles, the hedge fund manager has found a way to raise funds in a difficult environment. Falcone, 48, is selling stock and bonds through Harbinger Group (HRG), a publicly traded shell company.
On Nov. 15, Harbinger Group raised $350 million by selling five-year debt yielding 11 percent. Falcone plans to use the new capital to buy controlling stakes in industries from agriculture to telecommunications, according to a Nov. 1 filing by Harbinger with the SEC.
To back the bonds, Harbinger hedge funds plan to give Harbinger Group most of their majority stake in Spectrum Brands (SPB), a publicly traded company whose products include Rayovac batteries and George Foreman grills, in exchange for additional Harbinger Group Stock.
Most hedge funds raise money from institutional investors, such as pension funds, that can withdraw their money under certain circumstances. Owning a publicly traded company allows Falcone to pay for acquisitions by issuing stock. "Our corporate structure provides significant advantages compared to the traditional hedge fund structure for long-term holdings," Harbinger Group said in the Nov. 1 SEC filing.
Redemption calls are a worry now at Harbinger. Goldman Sachs (GS) plans to pull its entire $120 million investment from Harbinger Capital Partners following a 15 percent decline this year through mid-October and the disclosure about the personal loan to Falcone, according to people briefed on Goldman's plans.
Other investors such as Advantage Advisers Management, a subsidiary of Oppenheimer Asset Management, have also indicated they want out, according to regulatory filings. Falcone's New York-based firm's overall assets have declined to about $9 billion, as of September, from $26 billion in mid-2008.
Falcone has angered some clients by investing about 90 percent of his flagship Harbinger Capital Partners Fund and more than half his Special Situations Fund in wireless-telecommunications investments, as of September. He is trying to build a multibillion-dollar satellite wireless network that would take on entrenched players such as AT&T (T) and Verizon Communications (VZ) through a company he created called LightSquared.
Falcone is liquidating about 80 percent of the $2 billion Special Situations Fund at the request of clients, investors say. He's been trying since June to raise $1 billion to $1.5 billion for LightSquared from investors who would be willing to commit capital for several years, according to potential investors who have seen marketing documents.
In theory, Falcone could use shares of Harbinger Group, which is listed on the New York Stock Exchange (NYX), to meet redemptions in his hedge funds, says David Guin, head of the U.S. securities practice at law firm Withers Bergman in New York.
Harbinger spokesman Jeffrey Zelkowitz says the proceeds of the bond sale won't be used to cover redemptions or finance investments in LightSquared. "Rather, HGI is a permanent capital vehicle to house longer-term controlling equity stakes in companies that operate across a diversified set of industries."
Falcone created Harbinger Group last year, when three of Harbinger's hedge funds paid $74 million to acquire a 51.6 percent stake in Zapata, an oil driller with cash and no operating businesses that was co-founded by President George H.W. Bush.
Falcone reincorporated Zapata as Harbinger Group in December and later moved its headquarters to Manhattan from Rochester, N.Y. Having Harbinger Group gives Falcone a degree of freedom he doesn't have now, says Daniel Celeghin, a partner at Casey, Quirk & Associates, a Darien (Conn.)-based consultant to investment advisory firms: "Here is a pool of money you can manage indefinitely, and you don't have to worry about redemptions."
The bottom line: While dealing with investor redemptions, Falcone is raising capital through a public company he took over. "
Source of Post
http://www.businessweek.com/magazine/content/10_49/b4206051251677.htm
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