The Financial News website reports that the settlement with the US Securities and Exchange Commission saw Harbinger neither admit nor deny the fraud allegations.
The deal could also see the end of Harbinger leader Mr Falcone’s career as a hedge fund manager, as the agreement bars the billionaire from serving as an investment adviser for two years, meaning he also cannot raise new capital or make new investments through the fund.
'Lavish lifestyle'
Although the terms of the settlement will allow Mr Falcone to remain chief executive of Harbinger, the firm said it is unclear how much time he will devote to the job.
Harbinger also agreed to be overseen by a monitor and must ‘take all actions reasonably necessary to expeditiously satisfy all received redemption requests of investors’, according to the filing.
The investigation sparked into life in June last year when the SEC filed civil charges accusing Mr Falcone of putting his own interests, including maintaining a ‘lavish lifestyle’ ahead of those of Harbinger investors.
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