NEW YORK, Oct. 7 (UPI) -- New York regulators said Monday Philip Falcone had been banned from working in the insurance business in the state for seven years.
Falcone is the founder, as well as the chairman and chief executive officer of Harbinger Group, who agreed to sanctions imposed by the Securities and Exchange Commission in August for failing to inform investors of a personal loan of $113 million that the company had given him to pay taxes, The Wall Street Journal reported Monday.
In August, Falcone agreed to pay $18 million and to cease any work as an investment adviser for five years, the Journal said.
But those sanctions did not remove Falcone from his positions at Harbinger, which owns an insurance company.
The New York Department of Financial Services Monday extended Falcone's restrictions, barring him for seven years from "exercising direct or indirect control over the management, policies, operations and investment funds" of Fidelity & Guaranty Life Insurance Co. of New York or any other insurance firm licensed in the state.
The restrictions include involvement in any selection process for any company personnel or company officers, the Journal said.
The sanctions reflect the state's concern that insurance companies owned by investment funds will be pressured to pay dividends to the investors that harm the company's ability to honor commitments to customers, the Journal reported.
