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Turnaround Maven Tilton Sues SEC Over Fraud Charges
Lynn Tilton, whose Patriarch Partners LLC says it has resuscitated more than 240 companies over the past 15 years, is suing the U.S.
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Lynn Tilton, whose Patriarch Partners LLC says it has resuscitated more than 240 companies over the past 15 years, is suing the U.S. Securities and Exchange Commission over the commission's charge that Patriarch defrauded its investors, Reuters reports.
The SEC says Tilton and Patriarch misled investors who helped back distressed companies, generating nearly $200 million in fees for Patriarch in the process.
Tilton's lawsuit claims the SEC is subverting her constitutional rights by handling the fraud charges through an administrative proceeding rather than in a U.S. federal court. Reuters notes that such proceedings, which are handled by a panel of judges on the SEC's payroll, don't involve juries and generally limit the defense's ability to conduct discovery.
The SEC insists administrative proceedings are "eminently proper" and have been specifically encouraged by the Dodd-Frank financial reforms in 2010.
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