No Go For Launch

Loss of a Wireless Dream Caps a Fast Fall From Grace - New York Times

The dream has come crashing down to earth for Philip A. Falcone, the investor whose multibillion-dollar wager has been all but halted by the Federal Communications Commission. The agency, which initially blessed Mr. Falcone’s plans for a 4G network, changed course late Tuesday after an adviser determined the signal would interfere with GPS systems.

For Mr. Falcone, 49, a billionaire who minted a fortune betting against the subprime mortgage market, the move by the F.C.C. caps a remarkable fall from grace. He is under investigation for taking a loan from his hedge fund to pay a personal tax bill at a time when his investors could not touch their money.

Early in his career, Mr. Falcone and a college friend bought the All American Brush Manufacturing Corporation, a Newark-based hairbrush maker. After a disastrous stretch, the company went belly up and Mr. Falcone lost everything.

On Wednesday, one of Mr. Falcone’s most vociferous critics, Senator Charles E. Grassley, Republican of Iowa, vowed to continue his campaign against Mr. Falcone and the F.C.C.

The commission’s action “seems to acknowledge the point I’ve been making since April,” the senator said in a statement. “Now that the interference issue is settled, we need to find out more than ever why the F.C.C. did what it did.”