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Lynn Tilton concluded nearly four days of testimony on Friday with a firm denunciation of the Securities and Exchange Commission’s allegations against her.
She called the charges “baseless and false.”
The SEC has tried to prove over the past two weeks that Tilton and her firm, Patriarch Partners, wrongly collected $200 million in investor fees by hiding the poor performance of her portfolios of distressed loans, collectively known as the Zohar funds.
The flamboyant financier fielded nearly four hours of questions Friday from SEC lawyer Dugan Bliss, who continued to press the so-called Diva of Distressed Investing on her disclosures.
Bliss presented a transcript of a call with investors in which Tilton explained that she could change the maturity and interest rate on the loans and that other “things could be done” by her to protect the investors.
“That’s your disclosure?” Bliss asked.
“This is one disclosure of many,” Tilton shot back adding that the funds’ legal documents and monthly reports contained more disclosures. “Everyone knew, everyone saw,” she said.
The government then rested its case.
The SEC hearing, which is being held in a Manhattan federal court is expected to last through next week.


