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SEC Accuses “Turnaround Queen” Tilton of Fraud
The U.S. Securities and Exchange Commission says Dura Automotive Systems CEO Lynn Tilton, the self-proclaimed business "turnaround queen," misled investors and fraudulently collected nearly $200 million in excess fees, Reuters reports.
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The U.S. Securities and Exchange Commission says Dura Automotive Systems CEO Lynn Tilton, the self-proclaimed business "turnaround queen," misled investors and fraudulently collected nearly $200 million in excess fees, Reuters reports.
Known for her flamboyant attire and brassy style, Tilton and her Patriarch Partners investment firm claim they have restructured 243 distressed companies over the past 15 years. Reuters says Patriarch has some $5.3 billion in assets under management, including Dura, which it acquired in 2010.
The SEC claims Tilton, a former Wall Street banker, misled investors about three collateralized debt obligation funds that raised $2.5 billion and made loans to distressed companies. As those companies continued to struggle, Tilton personally adjusted the interest rates the companies paid on their loans, according to the charges.
The SEC says she failed to adhere to the valuations described to investors, hid poor performance, filed false financial reports and collected almost $200 million in additional fees.
Tilton and Patriarch deny the charges and say they will address them in an SEC administrative hearing.
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