WEB SEC Charges Carl Icahn with Hiding Billions of Dollars Worth of Stock Pledges
Overview
On Thursday, the Securities and Exchange Commission (SEC) announced charges against billionaire investor Carl Icahn and his company, Icahn Enterprises.
The SEC alleges that Icahn and Icahn Enterprises failed to disclose billions of dollars in stock pledges, violating federal securities laws.
Charges and Penalties
The SEC's complaint alleges that Icahn and Icahn Enterprises failed to disclose more than $1.5 billion in stock pledges as required by federal law.
As a result of these alleged violations, Icahn agreed to pay a $15 million civil penalty, while Icahn Enterprises agreed to pay a $500,000 civil penalty.
SEC's Findings
According to the SEC's complaint, Icahn and Icahn Enterprises failed to disclose stock pledges made by Icahn to various financial institutions.
These pledges were made as collateral for personal loans taken out by Icahn.
The SEC alleges that Icahn and Icahn Enterprises knew or should have known that these pledges were material information that should have been disclosed to investors.
Icahn's Response
In a statement released after the SEC's announcement, Icahn denied any wrongdoing and said he intended to fight the charges.
Icahn's attorney, Abbe Lowell, said that the SEC's charges were "without merit" and that Icahn "will vigorously defend himself against these false accusations."
Impact on Icahn Enterprises
The SEC's charges against Icahn and Icahn Enterprises could have a significant impact on the company.
The company's stock price fell by more than 5% in after-hours trading following the SEC's announcement.
Additionally, the charges could lead to increased regulatory scrutiny of Icahn and Icahn Enterprises, which could impact the company's ability to raise capital and conduct business.
Conclusion
The SEC's charges against Carl Icahn and Icahn Enterprises are a significant development in the ongoing debate over corporate disclosure.
The charges allege that Icahn and Icahn Enterprises failed to disclose billions of dollars in stock pledges, which could have a material impact on investors.
Icahn has denied the charges and said he intends to fight them, but the outcome of the case could have a significant impact on Icahn and Icahn Enterprises.
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