Regulator poised to sue hedge fund chief Philip Falcone Mr Falcone, who was one of a handful of financiers who made a fortune betting on the collapse of America's sub-prime housing market, also faces allegations from the Securities and Exchange Commission that some investors in his hedge fund, Harbinger, received preferential treatment in 2009 as it was restructured, it was reported. "Any allegations by the SEC of improprieties by Mr Falcone or Harbinger are neither supported by the facts nor the law," said Matthew Dontzin, a lawyer representing Mr Falcone. Should a lawsuit be brought, it will be contested vigorously. Action by the SEC would cap a torrid six months for Mr Falcone, a former professional hockey player. Earlier this year Harbinger's largest bet backfired when LightSquared, a telecommunications company it funded, filed for bankruptcy after regulators blocked a plan to build a high-speed wireless network across America. The SEC declined to comment.