Earlier this week, the Securities and Exchange Commission accused Lynn Tilton and her firm, Patriarch Partners, of lying to investors about the value of underlying loans in three CLOs. Though it's not yet clear what, if any, kind of punishment could be handed down, we offered a variety of alternatives to financial penalties and prison time, should it come to that. Designed to serve as a true deterrent, they struck at that which Tilton loves and included: banning her from doing Jello shots and covering herself in whipped cream for a period of 3-5 years; prohibiting her from "stripping and flipping men"; seizing her whip, handcuff, and dagger collection, and selling them at a government auction; not letting her pose for photos on the hoods of luxury vehicles (domestic cars produced before 2000 okay); banning the distribution of Christmas cards.
But apparently, Tilton has no intention of letting this get that far. Today she filed suit against the SEC, wherein she accused the regulator of violating the Constitution.
The 55-year-old financier claims in her suit filed in Manhattan federal court on Wednesday that the regulator is depriving her of her day in court. Instead, the SEC is making use of in-house judges to bring an enforcement action against her “without the same due process rights available to litigants in the federal courts,” according to Tilton’s statement.
Nobody puts Lynn Tilton in a corner.