New York CNN —Billionaire investor Carl Icahn and his firm Icahn Enterprises have settled charges for failing to disclose pledges of the company’s securities as collateral for billions of dollars in personal loans, US regulators said Monday.
The investigation came after a report from short-seller Hindenburg Research sent shares in Icahn’s investment firm spiraling last year.
Hindenburg wrote that “Icahn has been using money taken in from new investors to pay out dividends to old investors.
The Securities and Exchange Commission said Icahn, who partially inspired Wall Street villain Gordon Gekko in the 1987 film “Wall Street,” pledged up to 82% of shares in his companies to secure billions of dollars of margin loans — but failed to disclose those details.
“Hindenburg’s modus operandi, which is to publish scurrilous and unsupported allegations, did damage to IEP and its investors,” Icahn said Monday.
Persons:
Carl Icahn, Hindenburg, “ Icahn, ”, Icahn, Gordon Gekko, Osman Nawaz, ” Icahn, “
Organizations:
New, New York CNN, Icahn Enterprises, Hindenburg Research, Forbes, The Securities, Exchange Commission, SEC, Division’s, Unit
Locations:
New York, Beach , Florida