Patriarch Partners CEO Lynn Tilton made a video calling for a “fair fight” in the Security and Exchange Commission’s fraud suit against her. It hit YouTube on Thursday, she defended herself on CNBC on April 1st.
“SEC, I’m not asking you not to fight. I’m asking you for a fair fight and a fair forum. This is really a David and Goliath battle, and all I’m asking you is to play fair and put me in the right playing field.”
Tilton takes issue with the fact that the SEC is charging her in its own private courts, where it selects the judges. She counter-sued the regulator for this, and wants to be charged in a regular court.
Now for what the SEC is charging Tilton with. The agency alleges that Tilton, who specialises in saving distressed companies, made $US200 million worth of ill-gotten gains by generating fees for collateralized loan obligations (CLOs) that she improperly valued. Those CLOs are in three funds, Zohar funds 1, 2 and 3.
“… in the end what they have decided to pursue are financial statement technicalities and a contract interpretation case involving some of the most sophisticated investors on Wall Street,” she said.