‘Diva of Distressed’ Tilton Accused of Defrauding Investors

Lynn Tilton’s three-decade Wall Street career was dealt a blow by U.S. regulators, who accused the self-proclaimed billionaire of fraud for misleading investors about the value of risky pools of corporate loans.

Tilton and her firm Patriarch Partners reported the value of the underlying loans as unchanged even though many of the companies have made partial or no interest payments for years to funds clients invested in, the Securities and Exchange Commission said in a statement Monday. The SEC said Tilton and Patriarch collected $200 million of payments to which they weren’t entitled.