Icahn Reaches $2 Million SEC Settlement in Margin-Loan Probe (2)

Billionaire Carl Icahn and his investment firm have agreed to pay $2 million to settle a US Securities and Exchange Commission probe that found the famed investor didn’t properly disclose how much he was borrowing against his stake in the company.

Icahn was fined $500,000 and Icahn Enterprises LP will pay $1.5 million related to insufficient disclosure of how IEP units were pledged as collateral against his personal margin loans, according to an SEC statement Monday. The investigation started after a report by short-seller Hindenburg Research tanked shares in Icahn’s investment firm.

The settlement agreement shows that the 88-year-old investor ...