There are three main allegations. First, the SEC says Falcone fraudulently obtained US$113.2 million from the Harbinger fund in order to pay his personal taxes. Second, it says Falcone and two Harbinger entities manipulated the market in a set of high-yield bonds issued by MAAX Holdings. Finally, the SEC charges that Falcone and Harbinger secretly let some large investors take money out of a fund while other investors weren't allowed to.

Other charges against Harbinger and some affiliated companies have already been settled, the SEC said.

Falcone has never been an officer of LightSquared, and he joined the company's board only after the resignation of former CEO and board member Sanjiv Ahuja. But Harbinger itself owns most of the company.

The IDG News Service