A federal appeals court in New York refused Wednesday to stand in the way of a fraud case that the U.S. Securities and Exchange Commission brought against former distressed-company financier Lynn Tilton, the Wall Street Journal reported yesterday. Tilton sought to raise a constitutional challenge to the SEC administrative securities fraud action, which focuses on the $2.5 billion collection of distressed company loans she controlled until recently. The U.S. Court of Appeals for the Second Circuit, in a split decision, said Tilton and her Patriarch Partners private-equity firm cannot seek the aid of a federal court until the SEC proceeding, an administrative action, is concluded.
