SEC Cracking Down on LightSquared's Falcone?

National Legal & Policy Center ^ | December 10, 2011 | Peter Flaherty

[jazusamo]

Billionaire Phil Falcone, whose cozy relationship with the Obama Administration was first exposed by NLPC, may face civil fraud charges by the Securities and Exchange Commission (SEC). According to a filing yesterday by Harbinger Group Inc., Falcone and two other directors have received "Wells Notices," meaning that they are under investigation.

Falcone is the Chairman, CEO and primary investor in Harbinger Group Inc., a hedge fund. Reportedly, other Harbinger investors include Soros Fund Management. Harbinger owns LightSquared, which has received an unusual waiver from the Federal Communications Commission (FCC) to deploy a national 4G wireless network.

Media reports have alleged that Falcone prevented some investors from withdrawing their money from the hedge fund during the financial crisis, while allowing others to do so. The Wall Street Journal reports today that one favored investor was (surprise!) Goldman Sachs. One of the Harbinger directors who received a Wells Notice is Omar Asali, who co-headed Goldman's hedge fund investments before joining Harbinger in 2009.

It has also been alleged that Falcone personally borrowed more than $100 million from the hedge fund to pay a personal tax obligation.

The FCC waiver came after it approved Harbinger's acquisition of a company called SkyTerra, which Harbinger renamed LightSquared. In 2005, then-Senator Barack Obama invested $90,000 in the obscure, thinly traded SkyTerra. Obama was put into the investment by a UBS broker at the behest of a major donor to Obama's campaigns named George W. Haywood, who was also a major SkyTerra investor.

NLPC first accused the FCC of favoritism in a February 2 request for an investigation by the House Committee on Oversight and Government Reform , chaired by Rep. Darrell Issa (R-CA). We pointed to large donations to Democratic Senatorial Campaign Committee, made after Falcone visited the White House, that appeared to be related to the FCC's fast track approval of Harbinger's acquisition of SkyTerra.

Related:

LightSquared Scandal Explodes

Obama Invested in Company That Got Sweet Deal From FCC (Fox Business Network video)

Will FCC's Political Favor for LightSquared Result in GPS Interference ?

Did Harbinger Hedge Fund Buy Influence With White House?; Probe Asked of FCC Spectrum Giveaway

[jazusamo]

Looks like Obama's buddy Phil Falcone might be in hot water along with his LightSquared scam.

[BipolarBob]

Just another dirtbag Obama will pardon on his last day in office.

[dynoman]

They ought to;

Another thread on the subject today;

LightSquared disrupts 75% of GPS receivers in gov’t testing
http://www.freerepublic.com/focus/f-news/2818603/posts

Perfect example of crony capitalism. These people are so crooked it will take a corkscrew to bury them.

[jazusamo]

Thanks for posting that link, I read it earlier, good article.

[RedEyeJack]

Falcone/Lightsquared is running a big time PR campaign in the DC area putting out all the bennies that approval of their waivers will provide. This is the same group that tried to get the White House to make an Air Force General change his testimony on the effects of their network on GPS. He refused so he will get “tailhooked” if he comes before the Senate for a promotion confirmation (if not by the White House)

[bigbob]

The whole Lightsquared deal is just plain rotten.

[jazusamo]

It looks like the LightSquared scam isn’t going to go over like Falcone and his cronies planned. Gen. William Shelton, head of the Air Force Space Command is the one who shed light on their scam and blew their chances. I’d bet Obama would love to retaliate but if we vote that turkey out then Shelton could wind up a hero. That’d be fantastic.

[WellyP]

And, Lightsquared favors the 4G technology by Huawei, a CHICOM company that is BANNED from doing business with the US Government. NO Government equipment may contain ANY Huawei chips or Huawei technology for fear of the “back doors” seen in Huawei products produced for India. All Huawei products are banned in India.

[TangoLimaSierra]

Awww. Data finally became human. Sort of.

[Rutabega]

I am sitting in a car in a mall parking lot with a screaming toddler and crying baby while my husband gets his new phone activated and that comment was so flipping spot on you made my afternoon bearable again.
That totally looks like a fattish Data. :)

[Attention Surplus Disorder]

“SEC cracking down?”

Pull the other finger.