Legendary investor Carl Icahn has been charged by the Securities and Exchange Commission (SEC) with failure to disclose the use of company’s securities being pledged for personal loans. The SEC states that the outstanding principal amounts of the individual loans ranged from $150 million to $1.8 billion.
Ican has settled the charges without admitting or denying the allegations. The SEC said that Icahn has agreed to pay $1.5 million and $500,000 in civil penalties.
The SEC claims that Icahn used securities of Icahn Enterprises L.P. (IEP) as collateral to secure personal margin loans worth billions of dollars under agreements with different lenders. The SEC said that IEP failed to disclose Icahn’s pledges of IEP securities as required.
Icahn is said to have agreed to cease and desist from future violations and to pay the civil penalties.
