A.G. Schneiderman Announces $40 Million Settlement With Investment Management Company For Tax Abuses

A.G. Schneiderman's office press release ------ In the largest-ever recovery of its kind, Attorney General Eric T. Schneiderman announced today a $40 million settlement with Alabama-based Harbert Management Corporation and top executives at the firm. Harbert Management was the fund sponsor for Harbinger Capital Partners, a $26 billion hedge fund based in New York City (“Harbinger Fund”). The settlement resolves whistleblower allegations that members of Harbinger’s investment manager failed to pay millions in New York State tax on performance income for several years. “Our investigation uncovered a brazen and deliberate decision to avoid paying millions in taxes owed to New York State,” said Attorney General Schneiderman. “Harbert Management made a clear choice to skirt the rules and as a result, ordinary New York taxpayers were left footing the bill. On tax day, this sends a forceful reminder to businesses that if they think they can get away with tax evasion in New York, they should think again.” To learn more click on the picture below to read the release.