Billionaire Carl Icahn and his company have been accused by U.S. regulators of not disclosing personal loans valued at billions of dollars, which were backed by securities of Icahn Enterprises. Both parties have agreed to pay civil penalties to settle the charges, with Icahn facing a penalty of $1.5 million and his company being fined $500,000, as announced by the Securities and Exchange Commission on Monday.
The SEC revealed that between December 31, 2018, and the present, Icahn utilized approximately 51% to 82% of Icahn Enterprises’ outstanding securities as collateral for personal loans from various lenders. It was highlighted that Icahn Enterprises did not disclose these securities pledges in its annual report until February 25, 2022.
Additionally, Icahn neglected to amend a required regulatory filing that outlined his personal loan agreements dating back to at least 2005, failing to include necessary guaranty agreements. This failure lasted until at least July 9, 2023, according to the SEC.
Icahn Enterprises and Carl Icahn have agreed to stop future violations and pay the civil fines, without accepting or denying the accusations made against them. Requests for comments from Carl Icahn were not immediately responded to on Monday.
At the opening bell, shares of Icahn Enterprises remained unchanged.