Lynn Tilton wanted to keep the Securities and Exchange Commission from hearing her case.
But a US district judge isn’t hearing any of that.
US District Judge Ronnie Abrams rejected on Tuesday Tilton’s lawsuit from April that would have forced the fraud case against Tilton to be moved from SEC jurisdiction to the US Southern District of New York.
It means the fraud charges the SEC is pursuing against Tilton will be heard before an administrative law judge from the agency, and the proceedings will be governed by the SEC’s Rules of Practice.
The SEC charged Tilton with fraud in March. The charges surround three of Tilton’s investment funds, Zohar I, II and III. The agency alleges that Tilton mislead investors as to the value of the assets in those funds.
Tilton later tried to change the venue where her case would be heard.
Tilton is also being sued by investors in the debt funds that were used to finance her private equity-backed companies’ operations. Investors Norddeutsche Landesbank Girozentrale and Hannover Funding Co. sued Tilton in connection with her debt funds, alleging she misled them.
What Tilton told investors in her companies’ debt funds could prove crucial later with the SEC.
Tilton took to Twitter moments after the judge’s decision was announced and said she will appeal Tuesday’s ruling.
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