By Tom Precious
ALBANY – A major Alabama investment group and some of its top
executives have agreed to pay New York State $40 million in the
largest-ever state settlement of a tax claims case initially brought by a
private individual acting as a whistleblower, Attorney General Eric T.
Schneiderman said Monday.
The settlement proceeds include $8.8 million that will go to an
unnamed whistleblower who first brought the case’s attention to
Schneiderman’s office.
Top executives tied to Harbert Management Corp., profited heavily on
investments controlled by former billionaire New York City hedge fund
executive Philip Falcone, who in 2013 was banned by federal authorities
for five years from participating in the securities industry. Falcone
was not accused of wrongdoing in the New York tax case.
The investment group from Alabama made money on investments selected
by Falcone on troubled securities and companies, including by betting
against the subprime mortgage marketplace before the housing meltdown in
the last decade.
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Source: The Buffalo News (via The Empire Report)
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