TheDC previously reported on how the Obama administration had once provided favorable treatment to Falcone and Harbinger, having driven LightSquared’s competitors out of business in order to create a favorable business climate for the company. When it was discovered that the company’s technology interfered with GPS systems, however, the party was over. The company withered in regulatory limbo until it was finally denied full regulatory approval by the FCC.
Former LightSquared CEO Sanjiv Ahuja had also resigned shortly after The Daily Caller reported on his close ties to the Obama White House, although his resignation statement was silent about this fact. His resignation sparked an investigation by the Republicans in the House Energy & Commerce Committee into the FCC and other numerous executive branch agencies involved with the LightSquared affair. Republican Sen. Chuck Grassley had already been holding up the confirmation of two new FCC commissioners until his own investigation’s demands into the FCC’s role in the LightSquared affair were met.
As Falcone scrambled to assemble the funds necessary to appease his creditors and keep LightSquared afloat, Falcone went on to say that he felt he was “caught in the middle of a maelstrom for reasons not of [his] doing.” LightSquared ended up filing for bankruptcy in May.
A spokesman for Falcone told TheDC that Falcone was unavailable for interview.