The US is settling with billionaire Carl Icahn for using the company to secure billions in personal loans

Billionaire Carl Icahn and his company have been indicted by US regulators for failing to disclose billions of dollars worth of personal loans that were secured using Icahn Enterprises securities as collateral.

Icahn Enterprises and Icahn agreed to pay civil penalties of $1.5 million and $500,000, respectively, to settle the charges, the Securities and Exchange Commission announced Monday.

The agency said that from at least December 31, 2018 to the present, Icahn has pledged approximately 51% to 82% of the outstanding securities of Icahn Enterprises as collateral to secure personal loans with a number of lenders.

The SEC said Icahn Enterprises failed to disclose Icahn’s commitments to the company’s securities as required in its annual report by Feb. 25, 2022. Icahn also failed to file amendments to a mandatory regulatory filing that describes its personal loan agreements and amendments that date back to at least 2005 and did not attach the required security agreements. Icahn’s failure to file required changes to the regulatory filing persisted until at least July 9, 2023, the agency added.

Icahn became widely known as a corporate raider in the 1980s when he masterminded a takeover of TWA or Trans World Airlines. Icahn bought the airline in 1985, but by 1992 it had filed for bankruptcy. TWA emerged from bankruptcy a year later, but continued to operate at a loss, and its assets were sold to American Airlines in 2001. In February, Icahn took a nearly 10 percent stake in JetBlue.

Icahn Enterprises and Icahn, without admitting or denying the findings, agreed to cease and desist from future violations and pay civil penalties.

Icahn did not immediately respond to a request for comment from The Associated Press on Monday.

Shares of Icahn Enterprises were flat at the opening bell.