The New York Post published an article titled, “Federal Appeals Court Sides with Lynn Tilton in SEC Trial Rules” about a Denver federal appeals court ruling that it is unconstitutional for the Securities and Exchange Commission to try cases before administrative law judges – a view long-held by Ms. Tilton and her legal team.
Full text and link to the article are below:
Federal Appeals Court Sides with Lynn Tilton in SEC Trial Rules
New York Post
By Carlton English
Lynn Tilton found two appeals court judges to agree with her.
A Denver federal appeals court has ruled that it is unconstitutional for the Securities and Exchange Commission to try cases before administrative law judges.
Tilton, who just completed such a trial, has argued that point valiantly but unsuccessfully for almost two years.
In March 2015 the SEC sued Tilton and her firm, Patriarch Partners, claiming the so-called Diva of Distressed Debt hid the poor performance of her $2.5 billion portfolios from investors.
In the process, Tilton improperly pocketed $200 million in fees, the SEC alleged.
Tilton tried to keep her case out of the SEC’s courts, arguing the proceedings were unconstitutional.
Two New York courts turned aside her argument. A ruling on her case is expected early next year.
The Denver decision — while not related to Tilton’s case — could still help her, Randy Mastro, Tilton’s lawyer, said, should the decision in her case go against her.