Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Carl Icahn (Icahn), previously associated with Icahn & Co., Inc., has at least one disclosable event. These events include one regulatory event, alleging that Icahn recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on August 19, 2024.
The Securities and Exchange Commission deems it appropriate that cease and-desist proceedings be, and hereby are, instituted against Carl C. Icahn (Respondent). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement which the Commission has determined to accept. The Commission finds that From at least December 31, 2018 through the present, Icahn pledged approximately 51% to 82% of IEP’s outstanding securities as collateral to secure personal margin loans worth billions of dollars under agreements with various lenders. Notwithstanding his collateral pledges, Icahn did not file amendments to his Schedule 13D, as required by Section 13(d)(2) and Rule 13d-2(a) to reflect material changes to the facts reported under Item 6, describing his personal margin loan agreements and associated amendments that pledged IEP securities as collateral, until July 10, 2023, and similarly did not file exhibits under Item 7 of his Schedule 13D, disclosing his wholly-owned entities’ entry into guaranty agreements in connection with the aforementioned loan agreements and amendments, including with respect to the amendment to Schedule 13D filed on July 10, 2023. The failures to file amendments to Schedule 13D deprived existing and prospective IEP investors of required information. As a result, Icahn violated Section 13(d)(2) of the Exchange Act and Rule 13d-2(a) thereunder.
