SEC Charges Carl Icahn With Hiding Billions in Stock Pledges

Carl Icahn and Icahn Enterprises were charged with failing to disclose billions in collateral pledges, resulting in $2 million in penalties.

Billionaire activist investor Carl Icahn gives an interview on Fox News in New York, on Feb. 11, 2014. REUTERS/Brendan McDermid/File Photo

The Securities and Exchange Commission has charged investor Carl Icahn and his company Icahn Enterprises L.P. for failing to disclose information that Icahn used company securities as collateral to secure personal margin loans.

The SEC in its orders released on Aug. 19 found that both Icahn and his company, IEP, violated federal securities laws by not providing investors with necessary disclosures about these collateral pledges, which involved billions of dollars.