THE U.S. Securities & Exchange Commission has slapped a two year employment ban and a $200k fine on Harbinger Capital Partners LLC ex finance guru, Peter A. Jenson.
The former chief financial officer has taken a hefty hit to his professional reputation for facilitating the use of company funds to pay his bosses personal taxes.
The commission had previously taken an enforcement action against the firm, Jenson and his boss - Peter A. Falcone - in 2012.
Jenson played a pivotal role in giving millions of dollars of company money to Falcone without proper fiduciary oversight or above market rate of interest.
The money drawn down from Harbinger Capital Partners Special Situations Fund should have had separate legal counsel to protect the hedge fund's investors.
Julie M. Riewe, co-chief of the SEC Enforcement Division’s Asset Management Unit said: “Jenson assisted a fraudulent scheme that allowed Falcone to put his own interests ahead of investors by engaging in a related party loan on favorable terms."
Jenson agreeded to admit to wrongdoing and also not to work for any public company or any SEC regulated entity for a period of two years.
The SEC filed its settlement agreement at the U.S. District Court for the Southern District of New York which the court must then approve.
Source: SEC Newsroom