Hedge fund manager Falcone banned from role at insurance unit -N.Y.
BOSTON, Oct 7 (Reuters) - Hedge fund manager Philip Falcone, banned from the securities industry for five years by U.S. regulators, is also being banned for seven years from decision-making roles at Fidelity & Guaranty Life Insurance, a unit of his firm, New York officials said on Monday.
"Falcone is also banned during that period from serving as an officer or director of Fidelity & Guaranty Life and its subsidiaries or any New York-licensed insurer, as well as participating in the selection of any such officers or directors. The ban of seven years from these activities shall also apply to the employees of Harbinger Capital Partners, LLC," the New York state Department of Financial Services said.
Fidelity & Guaranty Life is a unit of Harbinger Group, which is majority-owned by Falcone's Harbinger Capital. The insurance unit is planning to sell shares to the public.
Falcone admitted wrongdoing and agreed to pay an $18 million fine to settle civil fraud charges with Securities and Exchange Commission in August.