Falcone has denied giving preferential treatment to any investors.
Falcone, a 1984 graduate of Harvard University in Cambridge, Massachusetts, started Harbinger in 2001 and became a billionaire after making a profitable bet on the collapse of the subprime loan market in 2007. Harbinger's assets mushroomed to $26 billion by June of 2008, only to tumble in the wake of the financial crisis.