Prominent hedge-fund manager Philip Falcone has rejected a SEC  settlement offer that would have banned him from the securities industry and essentially ended his career, people familiar with the matter said.  The SEC settlement offer apparently was extended to Falcone prior to it being disclosed - in a 12/9 SEC filing - that Wells Notices had been sent to Mr. Falcone and 2 senior offices, relating to possible civil fraud charges. The WSJ says an SEC multiyear ban likely would make it impossible for Mr. Falcone to continue running his hedge fund as a hands-on operation. Such a ban likely would include barring him from managing assets of the investors in his funds, people familiar with the matter said. According to the Journal, the SEC's push for a ban from the securities industry against the 49-year-old prominent hedge fund manager shows just how serious of a stance the regulatory agency is taking. The SEC is looking into the hedge fund for alleged market manipulation.  The regulatory agency is also investigating whether or not Harbinger should have disclosed to investors that Falcone took a $113 million loan in October 2009. (He did pay it back.) Harbinger is also being probed for an unspecified third issue, the Journal reported. That investigation reportedly has to do with an an allegation that Harbinger improperly allowed Goldman Sachs to withdraw their money from the fund, while it closed off investor withdrawals. An SEC spokesman declined to comment. A Harbinger spokesman said "any comment on settlement talks would be inappropriate."  [wsjournal, 12/23/11]