Philip Falcone and Harbinger Group Inc. have agreed to pay $18 million to settle civil fraud charges that he used fund money to pay his taxes and favored some clients over others. Falcone would be barred for two years from working as an investment adviser or broker under the agreement in principle between the Securities and Exchange Commission, Falcone and Harbinger Capital Partners. That is a publicly traded company of which Falcone is chairman and CEO. Under the settlement, Falcone and Harbinger Capital would neither admit nor deny the SEC's allegations. The SEC sued Falcone and Harbinger Capital in June. Harbinger is best known for investing in distressed companies. In 2007, it bet against bonds that were used to finance risky subprime mortgages and posted huge gains when the bonds fell in value. But the firm began to struggle in 2008, and it tightened its rules about when and how much money investors could withdraw. The SEC alleged in its lawsuit that from 2006 through early 2008, Falcone manipulated the market for high-yield, high-risk bonds issued by a company called Maax Holdings Inc. Using fund money, Falcone bought many of the bonds to shrink the supply on the market and drive up prices.

Harbinger Group Inc. announced unaudited consolidated results for the second quarter and six months ended March 31, 2013. For the quarter, the company reported total revenues of $1,411.9 million against $1,105.7 million a year ago. Operating income was $134.0 million against $95.9 million a year ago. Income from continuing operations before income taxes was $15.5 million against $16.7 million a year ago. Net loss was $50.5 million against $0.2 million a year ago. Net loss attributable to common and participating preferred stockholders was $45.5 million or $0.33 per diluted share against $3.9 million or $0.03 per diluted share a year ago. The increase in Revenue was primarily driven by the HHI acquisition in the company's Consumer Products segment, and to a lesser extent, realized and unrealized gains on derivatives in the Insurance segment, revenues from the new EXCO/HGI Partnership, and new business activity in the Financial Services segment. Quarter. The increase operating income was primarily the result of favorable investment portfolio performance and mortality gains combined with a decrease in amortization in intangible assets in the company's Insurance segment and the new business activity in the company's Financial Services segment. The increase was offset in part by increased bonus and headcount at the corporate level to support growth in the business and, to a lesser extent, a decrease in the company's Consumer Products segment operating profit resulting from the sale of inventory revalued in connection with the HHI acquisition along with acquisition and integration related charges. For the six months, the company reported total revenues of $2,634.2 million against $2,271.7 million a year ago. Operating income was $349.4 million against $207.7 million a year ago. Income from continuing operations before income taxes was $148.0 million against $101.7 million a year ago. Net income was $17.6 million against $45.3 million a year ago. Net income attributable to common and participating preferred stockholders was $16.5 million or $0.06 per diluted share against $19.9 million or $0.10 per diluted share a year ago.

EXCO Resources Inc. announced that its conventional oil and natural gas partnership with Harbinger Group Inc. closed the previously announced acquisition of certain conventional oil and natural gas assets in the Danville, Waskom and Holly fields in East Texas and North Louisiana, including and above the Cotton Valley formation, from an affiliate of BG Group plc for approximately $130.9 million, after customary preliminary closing adjustments. The economic effective date of the transaction was January 1, 2013. The properties acquired by the Partnership represent an incremental working interest in certain properties that EXCO originally contributed to the Partnership. The Partnership funded this acquisition using its revolving credit agreement. In connection with the closing, the borrowing base under the Partnership's revolving credit agreement was increased by $70 million to an aggregate of $470 million, of which approximately $374 million has been drawn by the Partnership.