financier lynn tilton and her firm petriak partners are suing the s.e.c. tilton claims the s.e.c.'ministrative proceedings violates the constitution. nobody has ever won a case like this, though, against the s.e.c. lynn tilton, ceo, here on power lunch for an exclusive interview. lynn, thank you so much for joining us, and we will get to today's news and the suit concerning the s.e.c. in just a moment's time. >> it's a dangerous population. they're withholding values, and we have you know valued those carrying values as we're disclosed to investors. this is not market valuations. they are defined by the indentures as holding values or carrying values and we were consistent over the course of over a decade in the exact same manner as we are today. >> but you directed the devaluations not be done in accordance with the official valuation methodology as set out in the documents for the funds? >> that's incorrect. what i said is we have valued the carrying and holding values exactly as are set out in the funds, which is either at par, a rating agency recovery rate or at purchase price.

breaking news on lynn tilton and the s.e.c.lynn tilton and partners filing suit against the s.e.c. this morning, claiming it violates their right to the constitution. now, basically lynn is saying that by having this move to the administrative court s.e.c. trying in its own court that violates her right to a fair trial. administrative court doesn't have the same appropriate forum it doesn't allow due process rights available to litigants in federal court. again the s.e.c. remember on monday charging lynn tilton and pay prearc with fraud, misrepresenting value of loans to investors, lynn tilton fighting back saying holding this in administrative court she doesn't have the right protects in a federal court where she would want this to be heard. >> thank you very much. we heard mark cuban on "squawk box" saying there were red flags in this case. >> we should add, lynn is live on "power lunch" today in the 1:00 hour. tune in there. >> all right. more about that case. her new charges, she said she was fighting back. >>> coming up in

investigation of lynn tilton this week. >> i did?. >> you hold your tongue you jump in you rush to the fray. what happened here because this is different than what the s.e.c. went after you for inside trading? >> maybe not. maybe not. look. i don't know all the details. but just from what i read apparently she had three funds which she brought into debt and distressed companies from 2003 2004 and 2004 these aren't transactions that took place in 2013, 2014 and 2015. it's not like it took 12 years. it took five years to where they were going to press charges. to me it's a red flag. >> the s.e.c. is looking into the saying saying that some of the investments that she was holding, valuations changed, she didn't tell her investors. as a result she was still able to take fees in from those investors. she was fighting this vigorously. >> not knowing the details but it's not the type of investment that changes day to day. because it was from more than ten years ago, you know did she all of a sudden change how she valued things. >> it has to

both parties, both hillary clinton and john mccain's political action committee, got checks from lynn tiltonshe stopped dead. i can't find a single contribution from her after that point. she lost interest in washington and moved on with her life to the rest of her business. not somebody who made a big impression in washington. she came in quickly and came out. >> what's interesting about the timing here, 2010 is about when this investigation started, and it's also the year that lynn wrote an op-ed critical of the obama administration. it's also the same period where she had a public disagreement with valerie in a public panel. if you're a political conspiracy theorist you say the same year this investigation started is the year she was critical of the obama administration. that's what some say. >> yeah, look, i mean, there's a lot of business people who are critical of her. she's the obama administration's point person in dealing with business folk, and i talked to a number of folks who do not get along with her or think she's the appropriate person to be in the role but what's interesting

lynn tilton sued that agency to stop it from pursuing a case charging her with defrauding her investorslained why earlier on "power lunch." >> after 5 1/2 years of investigation, you know, unleashed subpoena power and one-sided testimony, not to give me a chance to have the means and the time to defend myself seems unfair. >> senator robert menendez democrat from new jersey has been indicted on federal corruption charges, including bribery and wire fraud. he's been charged with using his office to improperly benefit a florida eye doctor and a political donor. >>> mcdonald's plans to raise salaries by more than 10% and add benefits like paid vacation for workers at u.s. restaurants it operates. starting july 1st, the company will pay at least a dollar more per hour above the local legal minimum page at the 1500 restaurants it owns. that comes to 90,000 workers. and the world's oldest person has died. she passed away only weeks after celebrating her 117th birthday. she died peacefully at heart failure at a nursing home where she had been living. that is the cnbc news update at this hour.