Harbinger Capital Partners, CEO Philip Falcone, and certain of its affiliates - including Omar Asali and Robin Roger - have received 'Wells' Notices from the SEC.  They're alleged to have committed securities fraud in connection with matters previously disclosed and an additional matter regarding the circumstances and disclosure related to agreements with certain fund investors. Harbinger and its affiliates expressed disappointment with the SEC's actions.  Except with respect to certain previously disclosed matters regarding Reg M Rule 105, they strongly disagree with the staff that any violation of federal securities laws occurred.  In accordance with SEC procedures, they plan to submit responses explaining why they believe enforcement actions are unwarranted.  It's then up to the SEC to decide whether to bring enforcement action against any or all of them.  Needless to say, Harbinger and affiliates intend to vigorously defend against it. Halt Investor Withdrawals. In response to these SEC developments, the $5.7 billion hedge fund reports that it will halt investor withdrawals as of year's end, 12/30/11. Specific SEC Allegations. Back in April, the hedge fund informed clients that the SEC was looking into whether Harbinger had engaged in market manipulation in its trading of the debt securities of an undisclosed company between 2006 and 2008.  The probe also involves a potential violation of a rule prohibiting investors from selling short a stock within 5 business days of a secondary offering and then buying shares in that offering to cover the short. The Harbinger hedge fund reported is also being investigated by the SEC and the U.S. Attorney’s office over a $113mn loan to founder Falcone and possible preferential treatment of some investors.   [Bloomberg, StreetInsider, 12/9/11]