Billionaire Carl Icahn and his company were sued by U.S. regulators for failing to disclose billions of dollars in personal loans that were backed by Icahn Enterprises securities as collateral.
Icahn and his company have agreed to pay $1.5 million and $500,000 in civil penalties, respectively, to settle the charges, the Securities and Exchange Commission said Monday.
The agency said that from at least Dec. 31, 2018, to the present, Icahn has pledged approximately 51% to 82% of Icahn Enterprises’ outstanding securities as collateral for personal loans with a number of lenders.
The SEC said Icahn Enterprises failed to disclose Icahn’s commitments to the company’s securities as required in its annual report by Feb. 25, 2022. Icahn also failed to file amendments to a required regulatory filing describing his personal loan agreements and amendments, which dated back to at least 2005, and failed to attach required guarantee agreements. Icahn failed to file the required amendments to the regulatory filing by at least July 9, 2023, the agency added.
Icahn Enterprises and Icahn have agreed, without admitting or denying the findings, to cease future violations and to pay the fines.
Icahn did not immediately respond to a request for comment from The Associated Press on Monday.
Shares of Icahn Enterprises were steady at the opening bell.