Mexican Media Brands
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.
#legal
Share
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.
RELATED CONTENT
-
U.S. Lawsuit Says Bosch Conspired with VW on Cheater Diesels
A U.S. lawsuit claims Robert Bosch GmbH conspired with Volkswagen AG to equip diesel-powered vehicles with software to cheat emission tests.
-
U.S. Justice Dept. Asks VW to Delay Diesel Cheating Report
The U.S. Dept. of Justice has asked Volkswagen AG not to release findings of an independent probe into the German carmaker's diesel emission cheating scandal.
-
Four Auto Companies Rank Among the World's Most Ethical
GM and Cooper Standard make the list for the first time, joining long-running honorees Aptiv and Cummins