Carl Icahn failed to disclose stock collateral, SEC charges

Between the lines: Icahn Enterprises agreed to pay $1.5 million and Carl Icahn personally agreed to pay $500,000 to settle the civil charges.

• The SEC accused Icahn of pledging about 51% to 82% of IEP's outstanding stock as collateral on billions in personal margin loans.
• The company did not properly disclose the pledges in a timely fashion, the SEC alleged.

What they're saying: "Existing and prospective investors were deprived of required information" due to the lack of disclosures, SEC Enforcement Division official Osman Nawaz said in a statement.

• Icahn cooperated with the investigation, the SEC said.

Context: The SEC launched a prosecutorial inquiry after activist short seller Hindenburg Research released a report accusing Icahn of "ponzi-like" behavior.

• In a statement today after the SEC charges were settled, Carl Icahn called the Hindenburg accusations "false" and said noted the settlement "makes no claim" that he or Icahn Enterprises "engaged in a 'Ponzi-like' structure."
• "We are glad to put this matter behind us and will continue to focus on operating the business for the benefit of unit holders," he added.
• Meanwhile, Jonathan Streeter, an attorney representing Icahn Enterprises, called the Hindenburg allegations "false and totally irresponsible" and said the "government found absolutely no fraud."