Skip to content
Subscriber Only
Opinion
Jonathan Weil

Did Falcone Commit 'Wrongdoing' Without Breaking Law?

The Securities and Exchange Commission unveiled its long-anticipated settlement with Philip Falcone and his hedge fund, Harbinger Capital Partners. And it is a very strange creature.

The Securities and Exchange Commission unveiled its long-anticipated settlement with Philip Falcone and his hedge fund, Harbinger Capital Partners. And it is a very strange creature.

The SEC noted in its news release about the deal that the defendants must "admit wrongdoing," in addition to paying $18 million. That isn't the same thing as admitting liability for violating a specific federal rule or law. The defendants here didn't make such an admission. The consent agreement filed in the case makes clear that the settlement doesn't affect their "right to take legal or factual positions in litigation or other legal proceedings in which the commission is not a party."