Her case was one of several where defendants objected to the SEC's use of administrative proceedings, which became more common after the 2010 Dodd-Frank law gave the agency the power to bring more cases in-house.
Randy Mastro, a lawyer for Tilton, in an interview said the ruling vindicated his client.
"We have said all along that Lynn Tilton was innocent of these charges, that she was falsely accused and that we would prove it at trial," he said. "Now we've done just that."
This article was provided by Reuters.