Securities and Exchange Commission (SEC) DESIGNATED charges on Monday against the famous 88-year-old investor Carl Icahn and his public company Icahn Enterprises LP (IEP), stating that Icahn pledged 51% to 82% of IEP's stock to secure billions in personal loans without telling shareholders or regulators for years.
The SEC alleged that IEP and Icahn failed to disclose information related to the pledges on time, extending from at least 2018 to 2022. Icahn also failed to file required amendments and agreements from at least 2005 to 2023, the agency said.
Icahn and IEP did not accept or deny the findings, but they settled the charges for $500,000 and $1.5 million, respectively.
The SEC said that without the proper documentation, “existing and potential investors were deprived of required information.”
“Federal securities laws imposed independent disclosure obligations on both Icahn and IEP,” said Osman Nawaz, Chief of the SEC's Division of Enforcement's Complex Financial Unit (CFIU). in a press release. “These disclosures would have revealed that Icahn pledged over half of IEP's outstanding stock at any given time.”
Carl Icahn. Photo: Victor J. Blue/Bloomberg via Getty Images
Icahn, which counts over 6 billion dollars according to the Bloomberg Billionaires Index, owns over 90% of IEP. the term “Icahn Lift” was named after him and refers to the boost in investor confidence and stock price that occurs when Icahn invests in or becomes involved with a company.
Composite IEP over half of the share of his investment portfolio at the end of the first quarter 2024.