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- New Cyberattack Goes Global, Hits WPP, Rosneft, Maersk
- Deutsche Bank Said to Lose as Much as $60Mn Over Derivative Trade
- Dimon Says JPMorgan Headcount to Keep Rising Despite Automation
- RBS to Cut 443 Jobs In UK, Move Many of Them to India
- Deutsche Bank Bullish on London Despite Brexit
- Supreme Court Nears Finish With Big Cases, Retirement Rumors
- The Richest Person in Every State
- LPL Tabs Scott Seese, Former eBay Exec, as Chief Information Officer
- Fired Biglaw Associate Arrested for Trying to Extort Partners
- Canada's CIBC Completes $5Bn PrivateBancorp Buy
- Word ‘Women’ Literally Never Appears in U.S. Senate’s 142-Page Health-Care Bill
- Stephen Pierce, Goldman Sachs Global Head of Equity Markets, To Retire
- Al Gore 'Not Very Smart,’ But Became Filthy Rich Using Simple Investing Formula - Charlie Munger
- U.S. Regulators, Lawmakers Support Volcker Rule Revamp at Hearing
- Morgan Stanley Opts for Frankfurt as New EU Hub
- A New Risk for Goldman, Morgan Stanley in Stress Tests (subsc reqd)
- A Trump Bump for Law Firm of President’s Lawyer - Kasowitz Benson Torres
- JPMorgan, BofA, Goldman, Citi, Wells Fargo Pass Fed's Stress Test
- Blackstone Stock Still Trading at $31 - Its IPO Price From 10 Years Ago
- NJ Resident and NY-Based Global FX Club Charged with Solicitation Fraud, Misappropriation - CFTC
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NEWSLETTERS & ALERTS
Whistleblower Gets $8.8Mn Award on Harbinger Fund Tax Evasion Case
A whistleblower was awarded $8.8 million in connection with a groundbreaking settlement by New York State Attorney General Eric Schneiderman. The unnamed individual had alleged that investment managers for Phil Falcone’s Harbinger Capital Partners, a $26 billion hedge fund based in New York City, had failed to pay taxes on performance income for several years.
In the largest-ever recovery of its kind, Attorney General Eric Schneiderman announced last Tuesday that Alabama-based Harbert Management Corporation and top executives at the firm agreed to pay $40 million to settle tax evasion charges. According to Schneiderman:
- Harbert was the fund sponsor for Phil Falcone’s Harbinger Capital Partners, a $26 billion hedge fund based in New York City.
- Harbinger Capital Partners Offshore Manager served as the investment manager for the Harbinger Fund from 2002 through 2009.
- Philip Falcone and the other members of the investment team operated in New York City, at offices that were located at 555 Madison Avenue in Manhattan.
- As investment manager, Offshore Manager earned performance fee income in an amount equal to 20% of the Harbinger Fund’s net profits.
- Offshore Manager’s members, which included several senior executives at Harbert Management Corporation, were required to pay NYS income tax on this performance fee income earned by Mr. Falcone’s trading activity in New York.
The basis for the settlement is that, when businesses operate both inside and out of New York City and State, they must apportion for tax purposes that part of their income derived from or connected with New York.
[Click on Schneiderman Announcement for further specifics on the case.]