Phil Falcone gets a babysitter

Philip Falcone, chairman and chief executive officer of Harbinger Group Inc.
Jacob Kepler | Bloomberg | Getty Images

Legally troubled hedge fund manager Phil Falcone officially has help to salvage his once-$23 billion Harbinger Capital Partners.

Jim Dunning has been appointed as an independent monitor for Harbinger over two years, according to a letter sent to Harbinger investors on Feb. 6.

Dunning is head of middle market private equity firm Dunning Group, which he founded in 1992. The firm specializes in media, energy and other leveraged investments.

Dunning was selected from five candidates Harbinger presented to the Securities and Exchange Commission as part of Falcone's 2013 settlement with the agency. Falcone was barred from the securities industry for five years and agreed to pay an $18 million fine for market manipulation and favoring some investors over others.