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"I don't know why they're coming after me," Tilton told CNBC.
This week, the SEC charged Tilton and her firm Patriarch Partners with fraud for allegedly hiding poor performance in in three collateralized loan obligation (CLO) funds going back to 2003.
The case against Tilton involves CLO funds known as the Zohar Funds, which make loans to distressed companies that become assets. Collectively, the Zohar Funds have $2.5 billion in assets. The SEC claimed that many of the distressed companies in the Zohar Funds have performed poorly, and some also failed to make interest payments. The SEC claimed that Tilton left the valuations unchanged and was able to collect $200 million in management fees.
Tilton told CNBC her firm valued assets as was disclosed to investors. She also said that the SEC mischaracterized the word "valuation." She also emphasized that Patriarch's "practices have been consistent over time."
On Wednesday, Tilton filed a counter-suit against the SEC alleging that the administrative proceeding violates the US Constitution. Basically, Tilton wants to have her case moved to the US Southern District of New York.
CNBC's Mandy Drury pointed out that there is no precedent for anyone winning a case like this against the SEC. Tilton said that she is "hopeful" that her case will be successful.
"One of the things you learn about being a warrior and fighting for truth is that you keep marching forward in the darkness every day until you see the light," Tilton said.
"I've had many 'David and Goliath' battles. This is not my first one. And I've never had an adudication against me. I fight for truth. I follow the law and I follow the rules of integrity. And therefore, I can be bold and strong and fight for what I believe in."
She also said that she is "baffled" that the SEC brought this case after six years. She also doesn't believe any of her fund's investors tipped off the SEC.
"I can categorically say none of my investors raised these issues with me."
Tilton said that the SEC "completely misunderstood" her business.
She said that she had put over $300 million into Zohar I, and that she's deferred fees to make it work.
She also said that's it's "unfair and unequitable" that in the five-and-a-half years the SEC had been investigating her that she was never given chance to defend herself.