Philip Falcone, the embattled hedge fund manager behind Harbinger Capital Partners, has admitted to multiple counts of market misconduct in a rare, high-profile $18m settlement with the US Securities and Exchange Commission (SEC), according to a report by Law.com.

In a consent order issued this, Falcone acknowledged violations of federal securities laws, including improperly loaning himself $113m from Harbinger funds to pay personal taxes, and giving preferential treatment to certain investor redemption requests. He has agreed to a five-year ban from the securities industry and will personally pay $11.5m in penalties and disgorgement. Harbinger Capital will pay an additional $6.5m fine.

The case marks one of the first instances under SEC Chair Mary Jo White’s new policy of requiring admissions of wrongdoing in serious cases—breaking from the agency’s longstanding practice of “neither admit nor deny” settlements. The SEC has said this tougher stance will only be used selectively, but it sends a clear signal to fund managers facing egregious allegations.

The Falcone settlement follows earlier controversy surrounding a rescinded, more lenient deal that proposed only a two-year industry ban. SEC commissioners voted 3-1 in July to reject that arrangement.

Though Falcone is barred from managing external capital for five years, he is not required to step down as CEO of Harbinger Group Inc, the publicly traded investment vehicle he leads. The settlement is subject to federal court approval.