WASHINGTON – Federal regulators have filed civil fraud charges against prominent Wall Street executive Lynn Tilton and her investment firms. They are accused of concealing the poor performance of fund assets linked to risky securities.
The Securities and Exchange Commission announced the action Monday against Tilton and her Patriarch Partners group of investment firms, based in New York. The SEC said Tilton and the firms have misled investors and wrongly collected nearly $200 million in fees and other payments.
The agency said Tilton violated her fiduciary duty to clients, the legal obligation of investment advisers and managers to put their clients' financial interests first.
An attorney representing Tilton and Patriarch Partners did not immediately return a telephone call seeking comment.