Skip to Content

Zamansky Announces Investigation of Harbinger Capital

Zamansky LLC announces that it is investigating Harbinger Capital Partners, the hedge fund run by Philip Falcone, who became an overnight billionaire by betting on the collapse on the U.S. housing market. In the last few years, Harbinger has placed an enormous bet on , a wireless telecom start-up company. LightSquared is running low on cash and its outstanding debt trades at a steep discount.

U.S. securities regulators have reportedly sent Falcone and his two lieutenants Wells Notices, and are considering filing civil fraud charges for alleged manipulative trading in debt securities during the period from 2006 to 2008. Falcone reportedly bet on the downturn of the U.S. housing market by buying credit default swaps. Falcone’s fund did much of its initial subprime trading through deals set up by Deutsche Bank AG.

Harbinger now manages less than $4 billion and roughly half of the money is tied up in its investment in LightSquared. Recently LightSquared’s technology was said to interfere with global positioning systems that help to keep passenger airlines on course. LightSquared awaits a decision by the Federal Communications Commission regarding its plan to build a global wireless network using airwaves reserved for satellites. FCC approval could be derailed by securities fraud charges against Falcone.

Many investors have reportedly been angered over Harbinger’s “all in” approach to LightSquared, by the company’s closing its funds to redemptions and by borrowing $113 million from the fund to pay Falcone’s taxes without first notifying his investors.

If you are or were an investor in Harbinger Capital and wish to discuss your rights, or have information to share that will assist our investigation, please contact Jake Zamansky at (212) 742-1414, or by email at

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
View More