CEO, Harbinger Group Inc.
Smart bets on the mortgage bust helped Falcone, 50, build Harbinger into a successful hedge fund. He had $26 billion under management as of mid-2008. Losses and customer withdrawals since then have shrunk the fund to about $3 billion. Falcone's biggest in-vestment, wireless startup LightSquared Inc., filed for bankruptcy protection in May. He's being sued by the U.S. Securities and Exchange Commission over alleged improper loans from the fund.
WHAT HIS LAWYER SAYS: "The notion propagated by the SEC that investors were harmed by that conduct or any other is not only irresponsible but completely unsupported by any evidence." - Statement from attorney Matthew Dontzin on June 27.