NEW YORK - An offshore hedge fund firm whose investing was led by money manager Philip Falcone will pay $30 million (R424 million) to resolve claims it knowingly evaded hundreds of millions of dollars of New York state and New York City taxes, officials said on Thursday.
The settlement with Harbinger Capital Partners Offshore Manager LLC for violating the state’s False Claims Act was announced by state Attorney General Barbara Underwood and New York City Corporation Counsel Zachary Carter.
It came 17 months after Alabama-based Harbert Management Corp, which sponsored Falcone’s once-$26 billion hedge fund Harbinger Capital Partners, reached a $40 million settlement with New York state for nonpayment of taxes.
The Harbinger manager “deliberately dodged paying its fair share of taxes,” Underwood said. “Tax evasion forces ordinary New Yorkers to shoulder the bill.”
Falcone is now chief executive of a holding company, HC2 Holdings Inc. His lawyer Matthew Dontzin said he was pleased that officials recognized that the questionable tax decisions were made by the Harbinger manager’s officers and agents in Alabama, “not by Mr. Falcone.”