The Securities and Exchange Commission filed a long-anticipated complaint against Harbinger Capital founder Phil Falcone today—including charges that Mr. Falcone misappropriated $113.2 million in client funds to pay a personal tax bill. (It hardly helps that Mr. Falcone had prevented investors from withdrawing assets from the same fund, citing potential claims arising from Lehman Brothers’ bankruptcy; or that when Mr. Falcone repaid the loan, he charged himself an interest rate below the fund’s cost of capital.) Anyway, the SEC has some ideas regarding what the hedge fund manager could have done to avoid this embarrassment: Read More