The Los Angeles Times reported that Philip Falcone and his firm, Harbinger Capital Partners, are facing charges of civil fraud and bond price manipulation. The article stated that Falcone and his firm allegedly manipulated the market for high yield and high risk bonds. Falcone used Maxx Holdings to buy up a great portion of Harbinger Funds to shrink the availability in the market and drive up prices.
Falcone and his firm were also accused of letting only certain investors know when they should cash out their holdings, without giving any warning to their other investors. Three other firms were linked to the fraud and bond manipulation and paid $1 million dollar fines.
If you have lost money due to an investment, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.