More than three years after an arm of The Carlyle Group L.P. collapsed, taking nearly $1 billion with it, the Washington-based investment firm continues to fend off allegations that it deliberately misled investors.
Created in 2006, Carlyle Capital Corp. Ltd. put its money on residential mortgage-backed securities. When the mortgage market began to crumble the following year, Carlyle Capital found it increasingly difficult to pay back its lenders and was placed in liquidation in March 2008.
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