M E M O R A N D U M
To: Reporters and Editors
Re: SEC charges against LightSquared backer
Da: Wednesday, June 27, 2012
The U.S. Securities and Exchange Commission today filed a lawsuit in federal court charging hedge fund manager Philip Falcone with market manipulation, giving preferential treatment to several big investors who wanted to get their money out and borrowing cash from his hedge fund to pay personal expenses. Last year, Sen. Chuck Grassley raised concerns with the Federal Communications Commission about Falcone’s LightSquared wireless project, including the SEC’s attention to Falcone. Grassley made the following comment on today’s development.
“When I raised concerns regarding the SEC’s multiple, serious investigations of Mr. Falcone to the FCC, I got the brush-off. Now it turns out those concerns appear to have been well-founded. It appears the FCC nearly granted billions of dollars in taxpayer assets to someone accused by our nation’s financial regulator of having ‘victimized’ ‘clients and market participants alike’ and leading a ‘graduate school course in how to operate a hedge fund unlawfully.’ Maybe the next time, the FCC won’t be so dismissive about concerns raised about its business.”
Grassley’s initial letter to the FCC on LightSquared is available here.