The Securities and Exchange Commission Announces Settlement in Hedge Fund Scheme

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On July 28, 2014 the Securities and Exchange Commission announced that the former Chief Operating Officer of Harbinger Capital Partners LLC agreed to settle charges that “he assisted a scheme by the firm and its owner Philip A. Falcone to misappropriate millions of dollars from a hedge fund they managed to pay Falcone’s personal taxes.”

Peter A. Jensen agreed to “admit wrongdoing and pay a $200,000 penalty.”  As part of the settlement he will also be prohibited from employment in the securities industry for a period of two years, will be suspended for two years or more from practicing as an accountant for any publicly traded company or other entity regulated by the SEC.

By Vincent D. Slavens, 619|232|0331, vslavens@kkbs-law.com