Billionair investor Charles Icahn racked up a $1.5 million fine plus an additional $500,000 in civil penalties after running awry of the SEC for failing to disclose the use of Icahn Enterprises stock as collateral for billion dollar personal margin loans. The fine and the civil penalties were part of a settlement after the SEC formally announced charges this Monday.
“The federal securities laws imposed independent disclosure obligations on both Icahn and IEP. These disclosures would have revealed that Icahn pledged over half of IEP’s outstanding shares at any given time,” said Osman Nawaz, Chief of the SEC Enforcement Division’s Complex Financial Instruments Unit (CFIU). “Due to both disclosure failures, existing and prospective investors were deprived of required information.”
Icahn became a feared corporate raider after the hostile take over of the iconic americal airline TWA in the 1980s and is estimated to be worth $6.7 billion.
Icahn’s dealings came to light after a report from short seller Hindenburg research in May 2023 claiming Icahn enterprises was overvalued, leading to a 20% drop in the company’s stock.
The 88-year old Icahn’s has sought to soften his image lately, pressuring McDonald’s in which he holds stock to improve the conditions in which pigs are raised.
By Staff
