Billionaire hedge-fund manager Philip Falcone admitted wrongdoing and agreed to be banned from the securities industry for at least five years. Falcone also agreed to settle claims filed by the US Securities and Exchange Commission against him.

Harbinger Capital Partners LLC and Falcone agreed to pay an USD18 million fine according to a regulator's statement filed today. According to the regulatory agency, the bar would allow Falcone to liquidate his hedge funds under the supervision of an independent monitor. The said agency rejected an earlier proposed settlement last month.

Falcone was accused of improperly borrowing money from his fund to pay personal taxes. He was also accused of being in favor of other investors over others in getting back their money. Falcone was also accused of engaging in short bonds owned by a Canadian manufacturer.

The settlement awaits approval from the US District Court from the Southern District of New York.