Billionaire Carl Icahn and his company have been charged by U.S. regulators for failing to disclose personal loans worth billions of dollars that were secured using securities of Icahn Enterprises as collateral. The Securities and Exchange Commission announced that Icahn and his company have agreed to pay $1.5 million and $500,000 in civil penalties, respectively, to settle the charges.
The SEC revealed that from at least Dec. 31, 2018, to the present, Icahn pledged approximately 51% to 82% of Icahn Enterprises' outstanding securities as collateral to secure personal loans with various lenders. It was noted that Icahn Enterprises failed to disclose Icahn’s pledges of the company's securities as required in its annual report until Feb. 25, 2022.
Furthermore, Icahn neglected to file amendments to a necessary regulatory filing detailing his personal loan agreements and amendments, which dated back to at least 2005, and failed to attach required guaranty agreements. The failure to file the required amendments persisted until at least July 9, 2023, according to the SEC.
Both Icahn Enterprises and Icahn, while not admitting or denying the findings, have agreed to cease and desist from future violations and to pay the civil penalties. Icahn did not immediately respond to a request for comment from The Associated Press.
Shares of Icahn Enterprises remained unchanged at the opening bell following the announcement of the charges by the SEC.
