Hedge fund manager Falcone banned from role at insurance unit -N.Y.

Reuters

BOSTON, Oct 7 (Reuters) - Hedge fund manager Philip Falcone,banned from the securities industry for five years by U.S.regulators, is also being banned for seven years fromdecision-making roles at Fidelity & Guaranty Life Insurance, aunit of his firm, New York officials said on Monday.

"Falcone is also banned during that period from serving asan officer or director of Fidelity & Guaranty Life and itssubsidiaries or any New York-licensed insurer, as well asparticipating in the selection of any such officers ordirectors. The ban of seven years from these activities shallalso apply to the employees of Harbinger Capital Partners, LLC,"the New York state Department of Financial Services said.

Fidelity & Guaranty Life is a unit of Harbinger Group, whichis majority-owned by Falcone's Harbinger Capital. The insuranceunit is planning to sell shares to the public.

Falcone admitted wrongdoing and agreed to pay an $18 millionfine to settle civil fraud charges with Securities and ExchangeCommission in August.

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