Philip Falcone | $1B+
Get in touch with Philip Falcone | Philip Falcone, founder of Harbinger Capital Partners, rose to prominence as one of the most aggressive hedge fund managers of the financial-crisis era, making billions by shorting subprime mortgages before turning to large, high-stakes bets in distressed debt and telecom. A former Harvard hockey player turned Wall Street trader, he built Harbinger into a multibillion-dollar fund known for concentrated, contrarian investing, though his later career was marked by regulatory scrutiny and the costly collapse of LightSquared. Falcone remains a memorable figure in hedge fund history for pairing extraordinary conviction with extraordinary volatility.
Philip Falcone (born July 14, 1961) is an American investor and former hedge fund manager who founded Harbinger Capital Partners, a distressed debt hedge fund that achieved peak assets under management of $26 billion through aggressive bets against subprime mortgages amid the 2007-2008 financial crisis.[1][2]Falcone's early career included trading junk bonds at firms like Kidder Peabody and Barclays Capital before launching his fund in 2001 with seed capital from Harbert Management; by 2007, these strategies yielded him personal earnings of $1.7 billion and billions in gains for investors, establishing him as a self-made billionaire from modest roots in Chisholm, Minnesota.[2][1]His trajectory shifted dramatically following U.S. Securities and Exchange Commission charges in 2012 for securities fraud, including borrowing $113.2 million from a client fund to cover personal tax obligations without disclosure, granting undisclosed preferential redemption terms to select investors, and orchestrating a short squeeze to manipulate bond prices.[3][4] In a 2013 settlement, Falcone and Harbinger admitted the misconduct, disgorged profits, paid over $18 million in penalties, and resulted in Falcone's five-year bar from the securities industry.[4]Post-settlement, Falcone pursued ventures like LightSquared, a wireless broadband initiative that filed for bankruptcy in 2012 after regulatory hurdles over spectrum interference, marking substantial investor losses and further legal disputes.[1] Despite these reversals, he retained interests such as partial ownership of the Minnesota Wild NHL franchise and sought to restructure Harbinger Group into a diversified holding entity.[1]
Early Life
Upbringing in Minnesota
Philip Falcone was born on July 14, 1962, in Chisholm, Minnesota, a small iron-ore mining town on the Mesabi Iron Range approximately 100 miles south of the Canadian border.[2] [5] The community, with a population of around 5,000, was centered on the declining mining industry, reflecting the economic hardships of the region during Falcone's youth.[6] [7]As the youngest of nine children, Falcone grew up in a modest three-bedroom home shared with his siblings, emblematic of a working-class household in northern Minnesota.[8] [9] His father served as a utility superintendent for the local power company, earning no more than $14,000 annually, while his mother worked in a shirt factory.[10] [11] The family traced its roots to Yugoslav immigrants, including Falcone's grandfather, who labored in Minnesota's iron mines for nearly four decades.[2]Falcone's early years were marked by the constraints of limited resources and a tight-knit family environment amid the Iron Range's industrial decline, fostering a backdrop of resilience in a community dependent on mining fortunes.[7] [12] He developed an early interest in ice hockey, a dominant pursuit in Chisholm, where the sport served as a cultural and communal outlet in the harsh northern climate.[10] This activity, alongside his family's emphasis on perseverance, shaped his formative experiences before pursuing higher opportunities beyond the region.[13]
Education at Harvard
Philip Falcone attended Harvard University on financial aid, having been recruited from his high school in Chisholm, Minnesota, to play for the Harvard Crimson hockey team.[2] [14] He majored in economics, reflecting his interest in finance that later shaped his career.[1] [15] [16]During his undergraduate years, Falcone distinguished himself as a hockey player, serving as a center and earning recognition as a skilled team player and dedicated worker.[8] [15] Teammates and coaches noted his drive to succeed, which contributed to his athletic contributions on the ice.[8] His participation in varsity hockey provided a pathway to the Ivy League, combining athletic and academic opportunities despite his modest family background.[17]Falcone graduated from Harvard in 1984 with a Bachelor of Arts degree in economics.[1] [15] [16] This education laid the groundwork for his entry into Wall Street, where he began trading high-yield bonds shortly after.[18]
Career Beginnings
Entry into Wall Street
Falcone entered Wall Street in 1985 as a junior trader specializing in high-yield junk bonds at Kidder, Peabody & Co., following his graduation from Harvard College with an economics degree in 1984 and a one-season stint playing professional hockey in Sweden.[19][20][5] He focused on trading distressed and high-interest debt securities during a period of aggressive leveraged buyouts and corporate restructurings on Wall Street.[10]Over the subsequent years, Falcone honed his expertise in distressed debt markets, navigating the volatile junk bond sector amid events like the 1989 Kidder Peabody insider trading scandal, though he was not implicated.[5] His early career emphasized opportunistic trades in underperforming corporate bonds, building a reputation for identifying undervalued high-risk assets before transitioning to senior roles at other firms.[2] By the late 1990s, he had advanced to head of high-yield trading at Barclays Capital, managing larger portfolios of speculative-grade securities.[18]
Rise in Hedge Funds Pre-Harbinger
Following his tenure as head of high-yield trading at Barclays Capital from 1997, where he specialized in distressed and high-yield securities, Philip Falcone transitioned into hedge fund management by partnering with Harbert Management Corporation, an Alabama-based alternative investment firm.[18] In the late 1990s, Harbert provided a $25 million seed investment to launch the Harbert Distressed Investment Master Fund, with Falcone serving as the primary portfolio manager focused on distressed debt opportunities.[2] This fund marked Falcone's initial foray into running a dedicated hedge fund strategy, leveraging his Wall Street expertise in junk bonds and leveraged buyouts to identify undervalued assets in troubled companies.Under Falcone's management, the Harbert Distressed Investment Master Fund achieved notable returns by capitalizing on market dislocations in high-yield and distressed sectors, building his track record as a value-oriented investor.[21] Harbert Management acted as the fund sponsor, entrusting Falcone with investment decision-making authority, which allowed him to apply first-hand trading experience to portfolio construction and risk assessment in a hedge fund context.[22] The fund's performance during this period, spanning approximately five years, demonstrated Falcone's ability to generate alpha through opportunistic bets on corporate restructurings and bankruptcies, attracting attention from institutional investors seeking exposure to distressed strategies.[23]This experience at Harbert solidified Falcone's reputation in the hedge fund industry prior to establishing his independent firm, providing empirical validation of his investment approach amid the volatile late-1990s credit markets.[24] By successfully navigating the fund through economic cycles, including recoveries from the 1998 Russian financial crisis and dot-com bubble pressures, Falcone honed strategies in event-driven investing that would later define his career.[10] The Harbert stint not only yielded strong risk-adjusted returns but also facilitated key relationships with limited partners, positioning Falcone to secure broader capital commitments upon spinning out to form his own vehicle.[2]
Harbinger Capital Partners
Founding and Growth
Philip Falcone established Harbinger Capital Partners in 2001, initially with a $25 million seed investment from Harbert Management Corporation, an Alabama-based firm that sponsored the launch of the New York-based master fund.[2][25] Falcone, hired by Harbert as senior managing director for the Harbinger Fund around June 2001, managed investments focused on distressed debt, high-yield securities, and special situations, leveraging his prior Wall Street experience in leveraged finance.[26] The firm operated as a hedge fund adviser, providing discretionary investment services uncorrelated with broader market trends.[27]Under Falcone's leadership as chief investment officer, Harbinger experienced rapid expansion through strong performance in event-driven and distressed asset strategies. By 2006, assets under management (AUM) had grown to approximately $5 billion, reflecting consistent returns from opportunistic trades in undervalued securities.[2] This period marked the firm's rebranding and solidification as an independent entity, with Falcone assuming greater control following its origins under Harbert sponsorship.[21]Harbinger's AUM peaked at around $26 billion by mid-2008, driven by outsized gains from concentrated bets, including a highly profitable short position against subprime mortgages that generated an estimated $11 billion in profits and a 116% return for the fund in 2007.[28][19] These successes attracted substantial institutional capital, positioning Harbinger as a prominent player in the hedge fund industry during the financial crisis.[29]
Key Investment Strategies and Successes
Harbinger Capital Partners employed a multi-strategy approach centered on credit opportunities, distressed debt, leveraged finance, and special situations, adapting across market cycles to capitalize on mispricings identified through rigorous fundamental analysis.[28] The firm prioritized long-term investments backed by extensive due diligence from its analyst team, eschewing short-term momentum trading or reliance on external ratings, which Falcone criticized as flawed in areas like securitized mortgages.[30]A standout success occurred in 2007, when the flagship fund delivered a 116% return, yielding roughly $11 billion in gains mainly from short positions against U.S. subprime mortgages amid early signs of housing market fragility.[28] This prescient bet propelled assets under management to a peak exceeding $26 billion by highlighting Harbinger's edge in distressed credit plays.[28] The performance underscored the fund's ability to generate alpha through event-driven strategies in undervalued sectors.Post-2008 crisis, Harbinger rebounded with a 42% return in 2009, demonstrating resilience via diversified positions in recovering leveraged finance and special situations.[28] From its 2001 inception, the firm consistently outperformed broader market benchmarks, providing capital to distressed U.S. companies to facilitate restructurings and avert bankruptcies, thereby preserving jobs and value.[30]
Telecommunications Ventures
Acquisition and Development of Lightsquared
In early 2006, Harbinger Capital Partners, under Philip Falcone's management, began accumulating debt and equity stakes in SkyTerra Communications, a mobile satellite services provider holding rights to L-band spectrum in the 1.5-1.6 GHz range.[31][32] This positioned Harbinger to pursue control of SkyTerra's assets for a hybrid satellite-terrestrial broadband initiative. By September 2009, Harbinger had agreed to a merger, culminating in the completion of the $262.5 million cash acquisition on March 29, 2010, at $5.00 per share through a Harbinger affiliate.[33][34][35]Post-acquisition, SkyTerra was restructured and renamed LightSquared in mid-2010, reflecting Falcone's vision for an open-access wholesale 4G LTE network combining satellite coverage for remote areas with dense terrestrial infrastructure for urban and suburban zones.[2][36] The company targeted nationwide deployment using its 20 MHz of ancillary terrestrial authority (ATA) spectrum, initially focused on satellite-to-handset voice and data but pivoted under Harbinger to emphasize high-speed mobile broadband.[37] LightSquared secured initial vendor contracts, including a potential $7 billion equipment deal for LTE infrastructure, and planned to launch two dedicated satellites—SkyTerra-1 and SkyTerra-2—while preparing ground-based amplifiers and base stations.[38]Harbinger committed substantial resources to the project, investing approximately $3 billion overall, which represented a significant portion—around 62%—of the fund's assets under management at the time.[2][39] In 2010, LightSquared raised an additional $1.75 billion in debt and equity financing to support network rollout, aiming for initial commercial service by 2011 with up to 40,000 terrestrial base stations for comprehensive coverage.[40][37] Falcone positioned the venture as a competitor to established carriers like AT&T and Verizon, emphasizing wholesale partnerships—such as a 15-year network-sharing agreement with Sprint Nextel announced in late 2010—to accelerate buildout and reduce costs.[41]
Technical and Regulatory Challenges
Lightsquared's proposed hybrid satellite-terrestrial broadband network encountered significant technical difficulties primarily due to signal interference with Global Positioning System (GPS) receivers. The company's plan involved deploying approximately 40,000 ground-based transmitters operating in the L-band spectrum (1525-1559 MHz), adjacent to GPS frequencies around 1559-1610 MHz.[42] These high-power terrestrial signals overwhelmed the much weaker satellite-based GPS signals, causing desensitization and jamming in GPS devices, as confirmed by multiple independent tests including those by the Radio Technical Commission for Aeronautics (RTCA) and the National Telecommunications and Information Administration (NTIA).[43] Even Lightsquared's own June 2011 study acknowledged that its signals would interfere with GPS operations across aviation, agriculture, maritime, and public safety applications.[44] Falcone and Lightsquared executives attributed some interference to "overreaching" GPS receivers operating outside their licensed bands, but empirical data from field tests consistently demonstrated that the network's design inherently posed risks without viable mitigation for legacy equipment comprising the majority of deployed GPS devices.[45]These technical issues precipitated regulatory hurdles with the Federal Communications Commission (FCC). In January 2011, the FCC granted Lightsquared a conditional waiver to repurpose its Mobile Satellite Service (MSS) spectrum for ancillary terrestrial broadband, contingent on demonstrating no harmful interference to GPS.[46] However, subsequent reviews by federal agencies, including the Department of Defense and FAA, highlighted unresolvable interference risks, projecting billions in costs and delays for GPS-dependent infrastructure.[47] In February 2012, the FCC formally rejected Lightsquared's deployment plan, stating that the company had failed to provide a commercially viable solution to protect GPS operations, effectively suspending its spectrum authorization.[48] Falcone contested the decision, arguing it violated prior approvals and imposed retroactive requirements, but the FCC maintained that the original waiver explicitly required interference-free operation, a condition unmet by Lightsquared's proposals.[49] This regulatory reversal exacerbated Lightsquared's financial strain, contributing to its Chapter 11 bankruptcy filing in May 2012 to seek time for resolution.[50]
Legal and Regulatory Issues
SEC Fraud Charges and Settlement
In June 2012, the U.S. Securities and Exchange Commission (SEC) charged Philip Falcone and Harbinger Capital Partners LLC with securities fraud, alleging that Falcone secretly borrowed approximately $113.2 million from the Harbinger Capital Partners Special Situations Fund L.P. in December 2009 to cover his personal tax liability of over $100 million, without disclosing the transaction to investors or the fund's board and circumventing redemption rights of certain investors.[3] The SEC further accused Falcone of directing short sales of Novatel Wireless Inc. stock in July 2006 to block a shareholder vote on a poison pill provision that would have hindered his ability to increase his stake, while failing to disclose these trades promptly as required.[51] Additional charges included misleading investors about Harbinger's ownership of preferred stock in Skyterra Communications Inc. (later renamed SkyBridge Communications) between 2006 and 2008 to conceal potential dilution of their interests.[3]Falcone and Harbinger contested the charges initially but entered settlement discussions amid ongoing litigation. An early proposed settlement in May 2013, which would have imposed a two-year industry bar on Falcone without requiring admissions of wrongdoing, drew criticism for leniency and was withdrawn by the SEC following public and internal scrutiny.[52] In August 2013, the parties reached a revised settlement, under which Falcone and Harbinger agreed to pay a total of $18 million in disgorgement, prejudgment interest, and civil penalties—comprising $13.368 million in disgorgement and interest plus $4.632 million in penalties—with Falcone personally responsible for $4 million and the firm covering the balance.[4] The agreement required Falcone to admit to certain facts, including reckless conduct in the tax loan matter, and imposed a five-year ban on associating with any investment adviser, broker-dealer, or municipal advisor, effectively barring him from the securities industry until 2018.[53]A federal judge approved the settlement on September 16, 2013, rejecting objections from investors who argued it undervalued the harm caused.[54] The SEC described the resolution as addressing Falcone's abuse of investor assets and prioritization of personal interests over fiduciary duties, while Harbinger was required to conduct an independent review of its compliance policies.[4] No criminal charges were filed by federal prosecutors in connection with these allegations.[55]
Bankruptcy Proceedings and Disputes
LightSquared Inc., the wireless broadband company majority-owned by Harbinger Capital Partners under Philip Falcone's control, filed voluntary petitions for Chapter 11 bankruptcy protection on May 14, 2012, in the U.S. Bankruptcy Court for the Southern District of New York, amid mounting debts exceeding $3.5 billion and regulatory setbacks from the FCC that halted its spectrum deployment plans.[56][57] The filing triggered defaults on related financing agreements and initiated a protracted restructuring process, with Harbinger holding significant secured claims as a major creditor stemming from its prior investments totaling over $2 billion in the venture.[58][59]Central to the proceedings were intense disputes between Falcone's Harbinger entities and Charles Ergen, chairman of Dish Network, who acquired approximately $1 billion in LightSquared's senior debt through affiliates, positioning himself as a key stakeholder.[60] Harbinger accused Ergen of inequitable conduct, including collusion with other hedge funds to manipulate claims and block competing reorganization plans, leading to a lawsuit filed in August 2013 seeking to subordinate or equitably disallow Ergen's claims.[61][62] In July 2014, Harbinger escalated with a $1.5 billion suit against Dish, Ergen, and others, alleging abuse of bankruptcy processes, evidence withholding, and bad-faith interference that prolonged the case and devalued assets.[63]The bankruptcy court faced multiple competing plans, including Harbinger's proposals to inject new financing and retain control, which clashed with creditor-backed alternatives prioritizing senior debt repayment; U.S. Bankruptcy Judge Allan Gropper remarked on the "plague on both your egos" involving Falcone and Ergen, highlighting the personal animosities fueling delays.[60][64] Additional litigation included Harbinger's July 2014 suit against the U.S. government, claiming breach of spectrum-related agreements that contributed to the collapse.[65] Efforts at mediation and global restructuring ultimately facilitated resolution, culminating in court approval of a third amended joint plan on March 26, 2015, allowing LightSquared to emerge from bankruptcy with restructured debt, repayment to secured creditors like Ergen's holdings, and Harbinger's claims partially satisfied through equity in the reorganized entity.[66][67][68]
Post-2013 Litigation and Asset Disputes
Following the 2013 Securities and Exchange Commission settlement, Falcone faced multiple lawsuits centered on personal loans secured by high-value assets, including artworks. In February 2020, BLCE LLC, doing business as New York Loan Company, initiated litigation against Falcone for defaulting on loans originating in 2013, totaling over $65.8 million, which were collateralized by pieces including a Pablo Picasso drawing, a Damien Hirst sculpture, and a Richard Prince painting.[69] BLCE foreclosed on the collateral and proceeded with sales, prompting Falcone to countersue in late 2021, alleging improper foreclosure and seeking to invalidate the actions. In July 2025, a New York court granted summary judgment to BLCE on its counterclaims of fraud and breach of contract, ruling that Falcone had made material misrepresentations regarding his ownership of the artworks and undisclosed prior liens, thereby justifying the lender's remedies.[70] [71]Asset freezes emerged from disputes over unpaid professional fees tied to earlier regulatory matters. In 2020, a New York state court froze Falcone's personal assets and those of Harbinger Offshore Fund following an arbitration award mandating payment of $13.6 million in legal fees to firms involved in his defense during the lead-up to the 2013 SEC settlement; Falcone had contested the fees as excessive but lost at arbitration and in court confirmation proceedings.[21] [72] This stemmed from obligations linked to Harbert Management Corporation, Falcone's early backer, and extended to enforcement actions where state authorities pursued his shares to satisfy a $12 million unpaid judgment from a 2018 settlement.[73]Litigation from the Lightsquared bankruptcy persisted into the post-2013 period, particularly involving creditor disputes over asset recoveries. Harbinger Capital Partners entities sued Apollo Global Management in New York courts, alleging fraud, negligent misrepresentation, and breach of fiduciary duty in connection with debt transactions during the 2012 bankruptcy; by 2023, the court dismissed key claims against Apollo, citing insufficient evidence of reliance or causation.[74] Falcone leveraged a related claim against Apollo as collateral for a 2022 loan from Michael Dell, highlighting ongoing efforts to monetize bankruptcy-era positions amid liquidity constraints.[75] Additional suits included a 2018 claim against Falcone and his wife for a $21 million guarantee on aircraft leasing debt, underscoring patterns of leveraged personal and business assets post-regulatory sanctions.[76]
Later Career and Current Activities
Return to Finance Post-Ban
Following the U.S. Securities and Exchange Commission's five-year ban on his association with investment advisory firms, which concluded in August 2018, Philip Falcone resumed involvement in financial management through Harbinger Capital Partners LLC, the entity he founded in 2001.[77] The firm, registered as an investment adviser in New York City, focuses on managing private funds aimed at generating alpha through opportunistic strategies, including distressed assets and special situations.[78] Post-ban, Harbinger continued to file 13F reports disclosing equity holdings, reflecting ongoing portfolio activity in public markets, though assets under management remained significantly reduced from pre-2013 peaks of over $20 billion.[28]Falcone's return emphasized oversight of Harbinger's investments rather than raising substantial new external capital, amid lingering creditor disputes and asset encumbrances from prior bankruptcies. In parallel, he served as chief executive of HC2 Holdings Inc., a diversified holding company spun from Harbinger Group assets, where he directed acquisitions in insurance, telecommunications, and manufacturing sectors until stepping back amid performance challenges.[79] By 2021, Falcone took the CEO role at a penny-stock entity where he held a 79% ownership stake, using it to pursue value-oriented investments, though details on fundraising or returns were limited.[80]Regulatory scrutiny persisted into the post-ban period, including a 2018 settlement where an offshore Harbinger entity paid $30 million to resolve New York tax evasion claims related to improper deferral of over $100 million in liabilities.[79] In July 2025, the UK's Financial Conduct Authority imposed a five-year ban on Falcone for market misconduct involving improper personal loans from fund assets and manipulative trading practices, requiring him to pay £9 million ($11.5 million) in penalties; Harbinger Capital contributed an additional £2.3 million ($3 million).[55] These events underscored constraints on scaling operations, with Falcone's finance activities shifting toward proprietary trading and smaller-scale advisory roles rather than high-profile hedge fund revival.
Ongoing Business Interests and Sports Involvement
Following the expiration of his five-year securities industry ban in 2018, Falcone took leadership roles at HC2 Holdings, Inc., a diversified holding company that rebranded as INNOVATE Corp. (NYSE: VATE) in August 2021.[4] He has served as Chairman, President, and CEO of INNOVATE Corp., overseeing its operations in infrastructure, aerospace, and other sectors, while maintaining a significant ownership stake of approximately 271,528 shares valued at over $1 million as of 2025.[81][82] INNOVATE Corp. has faced shareholder activism and litigation challenges, including a 2022 lawsuit alleging mismanagement that was largely dismissed against Falcone and the company.[83]Falcone's business activities have been constrained by ongoing financial pressures, including asset sales to settle debts with creditors such as the IRS, former employees, and litigators; in October 2024, he sold a Hamptons mansion for $14 million in cash amid these obligations.[84] By August 2025, reports indicated he had resorted to pawning personal items like a Rolex watch to address liquidity issues stemming from prior investment losses exceeding $2 billion.[19]In sports, Falcone has no current ownership stakes reported as of 2025, though his background as a Harvard University hockey player fueled earlier investments. He acquired a minority interest (less than 40%) in the NHL's Minnesota Wild around 2009, reflecting his Minnesota roots, but sold it in February 2015 to financier Matthew Hulsizer for an undisclosed amount that valued the team at approximately $370 million.[85][86] Speculation in 2014 about pursuing a stake in the New York Islanders did not materialize.[87]
Personal Life
Marriage and Family
Falcone married Lisa Maria Velasquez, a former model, in 1997 after meeting her in 1992.[7][19] The couple has remained married as of 2025, jointly involved in financial and legal matters including art loans and asset disputes.[70][19]Falcone and his wife have twin daughters, Liliana and Carolina, born in 2005.[7][2] The family has resided primarily in New York City, where the daughters attended elite private schools such as The Brearley School.[16] No public details indicate additional children or prior marriages for Falcone.[6]
Philanthropy and Lifestyle
In June 2009, Philip Falcone and his wife, Lisa Maria Falcone, pledged $10 million to the Friends of the High Line during a benefit event in New York City, where Lisa Maria spontaneously announced the donation after the organization sought matching contributions.[88][89] Falcone later described the gift as a joint decision, reflecting the couple's involvement in urban park revitalization efforts.[7] This remains one of the most publicized charitable contributions associated with Falcone, though Lisa Maria has pursued broader philanthropic activities in the city's cultural and social sectors.[90]Falcone's lifestyle during the peak of his hedge fund success in the late 2000s emphasized luxury real estate and high-profile social engagements. He and his wife acquired Bob Guccione's former Upper East Side mansion in Manhattan for nearly $50 million around 2007, initiating extensive renovations on the 25,000-square-foot property.[89] The couple also owned estates in the Hamptons and St. Barts, with the latter—a nine-bedroom oceanfront property—listed for $57.4 million in 2017.[91] These holdings exemplified a pattern of conspicuous spending amid Harbinger Capital's $26 billion assets under management at its height.[7]Following financial setbacks, including the 2013 SEC settlement and Harbinger's collapse, Falcone has divested many assets to cover obligations. The Manhattan townhouse sold for nearly $80 million in June 2019, setting a record for a residential townhouse in the city at the time; the Hamptons property fetched $14 million in an all-cash transaction in October 2024.[92][84] Falcone has described the sales of personal residences as particularly painful, signaling a contraction from prior extravagance after personal net worth declined from over $2 billion.[19]
Residences and Asset Sales
Philip Falcone and his wife, Lisa Maria Falcone, owned multiple luxury properties, primarily in New York City and vacation destinations, which were sold amid financial pressures following Harbinger Capital's challenges and related litigation. Their primary residence was a double-wide townhouse at 14-16 East 67th Street on Manhattan's Upper East Side, originally built in 1879 as two structures and previously owned by Penthouse magazine founder Bob Guccione; the Falcones acquired it in 2008 for $49 million and invested approximately $10 million in renovations, including an underground pool and movie theater.[93][19] They sold this nearly 30,000-square-foot property in 2019 for $77.1 million to hedge fund manager John Griffin, setting a record for the city's most expensive residential townhouse sale at the time.[93][19]The couple also owned an adjacent Upper East Side townhouse at 22 East 67th Street, purchased in 2004 for $10.375 million, which they listed for $39 million in 2018 before selling it for $27 million.[94][19] In 2022, Falcone auctioned furnishings from this property in a public sale, including a custom white lacquer Steinway grand piano originally bought for $180,000 (sold for $50,000), neoclassical artwork by Merry-Joseph Blondel and Joseph Dufour (listed at $23,500, sold for $7,500), and a leather sofa for $3,750, as part of efforts to liquidate personal assets amid mounting debts.[95][19]Among vacation homes, the Falcones acquired a nine-bedroom estate in Colombier, St. Barts, in 2008 for $39 million, featuring three pools, designer-themed suites (such as Hermès and Louis Vuitton), and ocean views; they listed it in 2017 for $57.4 million citing family and maintenance demands, ultimately selling it for $57 million.[91][19] Their final major property sale occurred in 2024 with a 14,000-square-foot, seven-bedroom mansion at 142 Crestview Lane in Sagaponack, New York (Hamptons), which included amenities like a chef's kitchen, screening room, gym with sauna and cold plunge, and a 4,600-square-foot roof deck; initially listed in 2021 for $27.95 million, it sold for $14 million in an all-cash transaction.[84][19]Additional asset liquidations included pawning a 20.45-carat pink diamond ring from Harry Winston, valued at $6.3 million, which was sold at a foreclosure auction before Falcone could repurchase it, an event he described as premature since the note was not yet due.[19] These sales, including properties pledged as collateral for loans from entities like Melody Business Finance, reflected broader efforts to address liabilities stemming from investment losses and regulatory settlements, though Falcone emphasized personal control over dispositions of his belongings
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