• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

SEC charges Carl Icahn with hiding billions of dollars worth of stock pledges

by August 20, 2024
written by August 20, 2024

The Securities and Exchange Commission on Monday said it fined billionaire activist investor Carl Icahn and his company $2 million, settling allegations that he failed to disclose billions of dollars worth of personal margin loans pledged against the value of his Icahn Enterprises stock.

Icahn and the publicly-traded company that bears his name settled those charges without admitting or denying wrongdoing. They agreed to pay $500,000 and $1.5 million in fines, respectively, the SEC said in a press release Monday.

The SEC said that Icahn, who established himself as a ruthless corporate raider before adopting the friendlier mantle of activist investor, pledged anywhere from 51% to 82% of Icahn Enterprises, or IELP, shares outstanding to secure billions worth in margin loans without disclosing that fact to shareholders or federal regulators.

Icahn’s cumulative personal borrowing was as much as $5 billion, according to an SEC consent order.

As the effective controlling shareholder of IEP, Icahn would have been expected to make what are known as Schedule 13D filings, which typically detail what a controlling shareholder expects to do with their influence over a company. They also would have had to include information about any encumbrances, like margin loans, on a stake.

“The federal securities laws imposed independent disclosure obligations on both Icahn and IEP,” Osman Nawaz, a senior SEC official, said. “These disclosures would have revealed that Icahn pledged over half of IEP’s outstanding shares at any given time.”

Icahn’s margin borrowing was highlighted in a May 2023 report issued by short-seller Hindenburg Research, which put pressure on Icahn Enterprises’ stock after alleging that the holding company was, among other things, not estimating the value of its holdings correctly.

Icahn amended, consolidated and disclosed his margin borrowings in July, according to the SEC’s consent order, two months after the Hindenburg report.

“The government investigation that followed has resulted in this settlement which makes no claim IEP or I inflated NAV or engaged in a ‘Ponzi-like’ structure,” Icahn said in a statement to CNBC. “We are glad to put this matter behind us and will continue to focus on operating the business for the benefit of unit holders.”

Hindenburg Research wrote on X on Monday that IEP is “still operating a ponzi-like structure” and reiterated that it remains short the stock.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Biden speech delayed until after primetime
next post
Trump, Vance hit battleground states as they counter-program Harris, Walz at DNC

related articles

Paramount mandates 5-day-a-week return to office ahead of...

September 5, 2025

Apple has survived Trump’s tariffs so far. It...

September 4, 2025

Trump family’s American Bitcoin makes stock market debut

September 4, 2025

Disney to pay $10 million to settle FTC...

September 4, 2025

Crash victims’ families prepare to make what could...

September 3, 2025

Amazon cracks down on Prime free shipping sharing

September 3, 2025

U.S. judge orders Google to share search data...

September 3, 2025

Kraft Heinz to split into two companies

September 2, 2025

Rhode Island’s ‘Taylor Swift Tax’ on vacation homes...

September 2, 2025

Spirit Airlines files for Chapter 11 bankruptcy protection...

August 30, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Lindsey Graham demands ICC reveal details of probe into prosecutor Khan’s misconduct allegations

    October 23, 2024
  • SCOTUS rules on nearly $2B in frozen USAID payments

    March 5, 2025
  • KeyCorp shares surge 18% as Scotiabank invests $2.8 billion: What this means for both banks

    August 12, 2024
  • Acting Secret Service director briefs lawmakers on Trump assassination attempt ahead of public report

    September 13, 2024
  • OpenAI introduces Operator to automate tasks like vacation planning, restaurant reservations

    January 23, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,924)
  • Investing (634)
  • Stock (921)

Latest Posts

  • DOGE plans to wind down consumer protection agency and fire nearly all staff, employees say

    March 3, 2025
  • Trump names Susie Wiles as first female White House chief of staff in history

    November 8, 2024
  • Is Nvidia in a ‘bubble’? Hedge fund Elliott raises concerns over AI investments

    August 2, 2024

Recent Posts

  • Trump’s deadline on secondary tariffs arrives; US-Russian relations hang in the balance

    August 8, 2025
  • US investigating release of classified docs on Israel’s planned strike on Iran

    October 20, 2024
  • DAVID MARCUS: Kamala Harris’ newest vibe is fading momentum

    September 2, 2024

Editor’s Pick

  • Elon Musk’s Starlink brings internet — and politics — to storm-ravaged areas

    October 3, 2024
  • RFK Jr nomination to serve as Trump’s Health secretary clears key hurdle in Senate

    February 12, 2025
  • FLASHBACK: New Harris campaign senior adviser made several insensitive comments about women, gay people

    July 26, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock