Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor
Judges Gavel on a bundle of money

Regulation and Compliance > Federal Regulation > SEC

Icahn Reaches $2M SEC Settlement After Margin Loans Probe

By Crystal Tse

X
Your article was successfully shared with the contacts you provided.

Billionaire Carl Icahn and his investment firm have agreed to pay $2 million to settle with the U.S. Securities and Exchange Commission after an investigation by the regulator.

Icahn is being fined $500,000 and Icahn Enterprises LP will pay $1.5 million related to insufficient disclosure of how IEP units were pledged as collateral against his personal margin loans, according to an SEC statement Monday.

The investigation started after a report by short-seller Hindenburg Research sent shares in Icahn’s investment firm tanking.

The settlement agreement shows that the 88-year-old investor pledged up to 65% of his IEP units from 2018 to 2022.

In exchange, he was granted more than $4.6 billion in personal margin loans by various lenders.

“We are glad to put this matter behind us and will continue to focus on operating the business for the benefit of unit holders,” Icahn said in a statement.

Both settlement agreements noted that Icahn and IEP cooperated with the investigation in providing relevant information and documents.

They didn’t admit nor deny the findings, but agreed to cease and desist from future violations, the SEC said.

 

Copyright 2024 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.