Billionaire investor Carl Icahn, the man who controls nearly 66% of the shares in oil refiner CVR Energy with refineries in Oklahoma and Kansas, finally settled charges this week with U.S. regulators who accused him and his Icahn Enterprises LP of failing to reveal the majority of the firm’s securities for billions in personal margin loans.
Icah and his company have agreed to pay $2 million in penalties. The Securities and Exchange Commission launched an investigation after short-seller Hindenburg Research accused Icahn of running a “Ponzi-like” scheme to pay dividends by overvaluing holdings reported Reuters. The SEC probe discovered failures by Icahn to reveal margin loans but the agency did not confirm some of the more serious claims.
In a statement this week, Icahn continued to deny some of the Hindenburg accusations and said the settlement allowed him to put to rest the “scurrilous and unsupported.” accusations.
Icahn is a major shareholder of CVR Energy’s 75,000-bpd operation in Wynnewood, Oklahoma and the 115,000-barrel-per-day refinery in Coffeyville, Kansas. He is also a majority shareholder in Oklahoma City’s SandRidge Energy.
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