New York Prosecutors Investigating Icahn Stock Trades

Carl Icahn

Bloomberg reports that billionaire investor Carl Icahn is being investigated for stock trades involving a U.S. company heavily dependent on imported steel. Icahn  owns approximately 10 percent of Xerox, and was instrumental in thwarting Fujifilm’s take-over of Xerox last year. The aborted takeover resulted in the resignation of much of the Xerox board and management, with Icahn Capital consultant John Visentin being appointed Xerox CEO.

Icahn, who at one time was also an adviser to U.S. President Donald Trump, said federal prosecutors in New York are looking into his sale of shares of a crane manufacturer last year to determine whether he profited from non-public information about U.S. plans for tariffs on imported steel.

The disclosure was also made in an Icahn Enterprises LP government filing. The firm had already revealed that New York prosecutors had requested information in September 2017 about Ichan’s activities related to the U.S. government’s renewable-fuels standards and his role as a presidential advisor.

A June 2018 subpoena called for information about Icahn’s sales of shares in Wisconsin crane maker, Manitowoc. A few weeks before the Trump administration announced tariffs on imported steel on March 1, 2018, Icahn Enterprises sold more than $31 million shares of Manitowoc, which is said to heavily depend on foreign metal. Icahn has denied having any knowledge of the steel tariffs before selling Manitowoc shares.

In its government filing, “Icahn Enterprises stated: “The U.S.Attorney’s Office has not made any claims or allegations against us or Mr Icahn with respect to either of the foregoing inquiries. We maintain a strong compliance program and, while no assurances can be made, we do not believe these inquiries will have a material impact on our business, financial condition or cash flows.”

 

Advertisements
%d bloggers like this: