A bid by Patriarch Partners and CEO Lynn Tilton to have the U.S. Supreme Court stay an SEC enforcement against them was rejected Tuesday without comment.
Ms. Tilton and Patriarch Partners have been rebuffed in lower courts in their challenge of SEC authority to bring such cases under administrative law judges.
Randy Mastro, a partner at Gibson, Dunn & Crutcher representing Ms. Tilton, said in a statement that they are disappointed, “but we will work tirelessly to see to it that justice is ultimately done here and Lynn Tilton is exonerated of these baseless SEC charges.”
On June 1, the 2nd U.S. Circuit Court of Appeals in New York upheld a lower court's dismissal of the case until the government completes its internal process. The SEC hearing is Oct. 24 and several firms subpoenaed to testify in the proceeding have requested that some documents not be publicly released.
After a five-year investigation that began in late 2009, SEC officials charged the firm in April 2015 with improper asset valuation and performance disclosure with three collateralized loan obligation funds. Patriarch Partners and Ms. Tilton, who called the charges meritless, immediately filed the legal challenges.