LightSquared backer charged in federal court
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WASHINGTON, June 27, 2012- The U.S. Securities and Exchange Commission today filed a lawsuit in federal court charging hedge fund manager Philip Falcone, who funded the proposed and now bankrupt LightSquared network, with market manipulation, preferential treatment to several big investors and borrowing cash from his hedge fund to pay personal expenses.
“When I raised concerns regarding the SEC's multiple, serious investigations of Mr. Falcone to the FCC, I got the brush-off,” said Senator Chuck Grassley, R-Iowa, who raised concerns with the Federal Communications Commission about Falcone's LightSquared wireless project earlier this year. “Now it turns out those concerns appear to have been well-founded."
“It appears the FCC nearly granted billions of dollars in taxpayer assets to someone accused by our nation's financial regulator of having ‘victimized' ‘clients and market participants alike' and leading a ‘graduate school course in how to operate a hedge fund unlawfully,'” he said. “Maybe the next time, the FCC won't be so dismissive about concerns raised about its business.”
Grassley's initial letter to the FCC on LightSquared is available here.
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