Hedge fund manager Philip Falcone has had some exciting ventures this year: first his Harbinger Capital Partners acquired SkyTerra, and now the SkyTerra satellite, on which Falcone has placed great hopes about 4G technologies, is well on its way. But these accomplishments have been overshadowed by some bad news: Blackstone, Goldman Sachs, and others have reportedly pulled their cash from Harbinger, and Falcone himself has been selling off a number of his investments.
Falcone made his situation worse by taking out a $113 million loan from one of his own funds -- aptly named the 'Special Situations' fund, from which redemptions have now been frozen. Falcone took the loan in 2009, but didn't notify investors until spring of this year. He has denied wrongdoing but acknowledged that people are none too happy with him, and that he wishes he had played it differently. The SEC and the U.S. Attorney's office are reportedly looking into Harbinger's handling of the loan.