Billionaire Philip Falcone was banned by New York state’s top financial watchdog from being an officer or director of Fidelity & Guaranty Life for seven years for using his hedge funds’ money for his personal taxes.
Falcone, 51, is also barred from “direct or indirect control over the management, policies, operations” and investment funds of Fidelity’s New York unit, the state’s Department of Financial Services said Monday. The ban also applies to employees of his hedge fund, Harbinger Capital Partners, which controls the insurance company. The ban stems from Falcone’s accord in August with the Securities and Exchange Commission. Falcone admitted to improperly borrowing $113.2 million from the fund and giving preferential treatment to some clients.
“It is vital to ensure that those who operate insurance companies will always put retirees and policyholders first,” said DFS Superintendent Benjamin Lawsky, who regulates insurers in New York.Olympian news services