SEC Charges Carl Icahn and Icahn Enterprises L.P. for Failing to Disclose Pledges of Company’s Securities as Collateral for Billions in Personal Loans

Source 2: https://www.sec.gov/files/litigation/admin/2024/34-100755.pdf

The Securities and Exchange Commission (SEC) announced charges today against investor Carl C. Icahn and his publicly traded company, Icahn Enterprises L.P. (IEP), for failing to disclose significant information related to Icahn’s pledges of IEP securities as collateral for personal margin loans worth billions of dollars.

According to the SEC, from December 31, 2018, through the present, Icahn, the controlling shareholder and Chairman of IEP's board, pledged between 51% and 82% of IEP’s outstanding securities to secure personal loans. Despite these substantial pledges, IEP did not disclose this information in its Form 10K filings until February 2022. Additionally, Icahn failed to update Schedule 13D forms to reflect these pledges, a requirement dating back to at least 2005.

To settle the charges, Icahn Enterprises agreed to pay $1.5 million in civil penalties, while Icahn personally will pay $500,000. The SEC highlighted that Icahn's non-disclosure persisted until at least July 2023.

TLDRS:

• The SEC charged Carl C. Icahn and Icahn Enterprises L.P. (IEP) for failing to disclose Icahn’s pledges of IEP securities as collateral for personal margin loans worth billions of dollars.
• Icahn, the controlling shareholder and Chairman of IEP, pledged between 51% and 82% of IEP’s outstanding securities from December 31, 2018, without proper disclosure until February 2022.
• Icahn also failed to update Schedule 13D forms, a requirement dating back to at least 2005, with the SEC noting that the non-disclosure persisted until July 2023.
• To settle the charges, Icahn Enterprises will pay $1.5 million in civil penalties, and Icahn will personally pay $500,000.
• RC has posted an image with Icahn and there is all sorts of speculation to his position in this saga.