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SEC accuses Wall Street exec of $200 million fraud

10/25: MoneyWatch

NEW YORK - A government lawyer said prominent Wall Street executive Lynn Tilton cheated investors in failing companies of over $200 million and should be banned from the industry.

But her lawyer said the Securities and Exchange Commission has created a laughable fraud case built on revisionist history. The dispute is being aired before an administrative law judge in New York federal court.

SEC senior trial counsel Dugan Bliss said the SEC wants Tilton banned from the securities industry and forced to give up over $200 million.

Her lawyer, Randy Mastro, said in opening statements Monday that his client was already worth almost $1 billion when the SEC claims she tried to cheat investors.

He said she followed rules and even put $440 million of her own money into companies and investment funds.

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