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Billionaire Carl Icahn and his company Icahn Enterprises have been charged by the Securities and Exchange Commission for allegedly not disclosing information about pledging his company’s securities as collateral for personal margin loans.
Icahn and his company agreed to pay $500,000 and $1.5mn, respectively, to settle the civil charges, according to a statement from the SEC on Monday. As part of the settlement, neither admitted to or denied the agency’s findings.
“The federal securities laws imposed independent disclosure obligations on both Icahn and IEP. These disclosures would have revealed that Icahn pledged over half of IEP’s outstanding shares at any given time,” said Osman Nawaz, chief of the SEC Enforcement Division’s Complex Financial Instruments Unit.
“Due to both disclosure failures, existing and prospective investors were deprived of required information.”
A spokesperson for Icahn did not immediately respond to a request for comment.
This is a developing story
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