Saturday, 29 August 2015
Last updated 1 day ago
Aug 30 2013 | 10:52am ET
The U.S. Justice Department has launched an investigation into a private-equity firm's hiring of a former Army officer who led a unit that did business with one of its portfolio companies.
Justice has asked Lynn Tilton's Patriarch Partners for information related to its hiring of retired Col. Norbert Vergez earlier this year. Vergez led a controversial Pentagon program that spent billions buying helicopters for U.S. allies, including from Patriarch's MD Helicopters, until his retirement last year.
The request came last Friday, The New York Times reports. The government plans to look into the circumstance surrounding Vergez's hire.
Tilton said she did not know Vergez until 2011, when his program awarded MD a contract worth as much as $186 million. Vergez approached Patriarch about a job last April—with the approval of a Pentagon ethics officer, a Patriarch spokesman told the Times. He joined the private-equity firm as senior vice-president overseeing aviation and aerospace investments in February.
MD has won no new government business since Vergez's hiring.
"MD and Patriarch are squeaky clean," Tilton said. "Our only fear is any specter that the press might cast and not of any truth than an investigation will find."
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…