Federal regulators are suing hedge fund manager Philip Falcone and his firm, accusing him of civil fraud for using fund money to pay his taxes and favoring some fund customers at the expense of others.
The Securities and Exchange Commission announced the lawsuit Wednesday against Falcone, who heads the fund Harbinger Capital Partners. The SEC also said that Falcone manipulated bond prices.
The lawsuit was expected. Falcone told The Wall Street Journal Tuesday that he plans to fight the charges.