The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

World News

SEC charges Carl Icahn with hiding billions of dollars worth of stock pledges

by admin August 21, 2024
August 21, 2024
SEC charges Carl Icahn with hiding billions of dollars worth of stock pledges

The Securities and Exchange Commission on Monday said it fined billionaire activist investor Carl Icahn and his company $2 million, settling allegations that he failed to disclose billions of dollars worth of personal margin loans pledged against the value of his Icahn Enterprises stock.

Icahn and the publicly-traded company that bears his name settled those charges without admitting or denying wrongdoing. They agreed to pay $500,000 and $1.5 million in fines, respectively, the SEC said in a press release Monday.

The SEC said that Icahn, who established himself as a ruthless corporate raider before adopting the friendlier mantle of activist investor, pledged anywhere from 51% to 82% of Icahn Enterprises, or IELP, shares outstanding to secure billions worth in margin loans without disclosing that fact to shareholders or federal regulators.

Icahn’s cumulative personal borrowing was as much as $5 billion, according to an SEC consent order.

As the effective controlling shareholder of IEP, Icahn would have been expected to make what are known as Schedule 13D filings, which typically detail what a controlling shareholder expects to do with their influence over a company. They also would have had to include information about any encumbrances, like margin loans, on a stake.

“The federal securities laws imposed independent disclosure obligations on both Icahn and IEP,” Osman Nawaz, a senior SEC official, said. “These disclosures would have revealed that Icahn pledged over half of IEP’s outstanding shares at any given time.”

Icahn’s margin borrowing was highlighted in a May 2023 report issued by short-seller Hindenburg Research, which put pressure on Icahn Enterprises’ stock after alleging that the holding company was, among other things, not estimating the value of its holdings correctly.

Icahn amended, consolidated and disclosed his margin borrowings in July, according to the SEC’s consent order, two months after the Hindenburg report.

“The government investigation that followed has resulted in this settlement which makes no claim IEP or I inflated NAV or engaged in a ‘Ponzi-like’ structure,” Icahn said in a statement to CNBC. “We are glad to put this matter behind us and will continue to focus on operating the business for the benefit of unit holders.”

Hindenburg Research wrote on X on Monday that IEP is “still operating a ponzi-like structure” and reiterated that it remains short the stock.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
GM lays off more than 1,000 salaried software and services employees
next post
To fix Starbucks, incoming CEO will have to tackle its mobile app problem

Related Posts

Microsoft fires back at Delta after massive outage,...

August 8, 2024

CrowdStrike losses may be biggest test yet of...

July 26, 2024

Flagging sales and Elon Musk’s political activities are...

March 17, 2025

McDonald’s to close three CosMc’s locations — and...

January 12, 2025

Women’s college basketball championship expected to set new...

April 7, 2024

CFPB sues America’s largest banks for ‘allowing fraud...

December 21, 2024

Airbus could prioritize deliveries to non-U.S. customers if...

February 21, 2025

TikTok and fast-food rivalry fuel Chili’s sales as...

August 17, 2024

Disney tops quarterly profit estimates but starts to...

February 6, 2025

Walmart says more diners are buying its groceries...

May 17, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      October 17, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      October 17, 2025
    • Trump reveals Arc de Triomphe-style monument for America’s 250th anniversary

      October 17, 2025
    • No 2 House Democrat says healthcare drives party’s strategy as shutdown heads into next week

      October 17, 2025
    • SOUTHCOM commander announces sudden retirement amid Trump drug war in Caribbean

      October 17, 2025
    • White House considers cash rewards for Gazans aiding search for slain hostages

      October 17, 2025

    Categories

    • Business (1,419)
    • Politics (4,767)
    • Stocks (1,713)
    • Uncategorized (45)
    • World News (1,412)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved