Lynn Tilton, who’s already defending SEC claims of overcharging customers by almost $200 million in fees, now faces fraud allegations by her clients, Bloomberg News reported yesterday. Two investors in funds managed by Tilton’s Patriarch Partners LLC said in a lawsuit filed on Friday that it’s “obvious” that the “vast majority of the information” they received from the firm was “false and misleading.” Hannover Funding LLC and Norddeutsche Landesbank Girozentrale are seeking at least $44 million in their lawsuit in state Supreme Court in Manhattan. The suit against the self-professed billionaire follows the Securities and Exchange Commission’s March 30 complaint against Tilton, claiming that she overcharged investors on fees collected on $2.5 billion of collateralized loan obligations.
