Tilton, Patriarch tell SEC: 'No, we're suing you'

Patriarch Partners and Lynn Tilton filed a counter-suit against the Securities and Exchange Commission on Wednesday, days after regulators accused her advisory firm of breaching its fiduciary duty.

In a statement, Tilton said the SEC's use of administrative court violated her constitutional rights. The regulatory maneuver prevents "due process rights available to litigants in the federal courts."

"Tilton and Patriarch strongly believe that the most fair and appropriate forum for this complex, five-year-old matter is U.S. District Court, and they urged the SEC Staff to bring their case in that forum," Tilton stated.

U.S. regulators are accusing Patriarch of hiding the poor performance of loans underlying three collateralized loan obligations, adding that it was able to collect almost $200 million in fees by failing to properly value the assets in the funds through the methodology described to investors.

The flamboyant Tilton, considered one of the richest women in America, told CNBC earlier this week that her battle with the SEC was one of "good and evil." She has denied the allegations, and vowed to continue running all 70 of the companies she owns.

Read More SEC accuses financier Lynn Tilton of fraud

"I am shocked," she told CNBC. "I am disappointed, saddened and ... I am certain that the allegations are ill-founded."

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