Hedge Fund Chatham Demands $100M From Compliance Team After SEC Probe – Bloomberg

Wall Street firms usually grumble in private after getting punished by regulators. Anthony Melchiorre’s Chatham Asset Management is dragging its advisers into a public legal battle for $100 million.

The $6 billion hedge fund is demanding that Adviser Compliance Associates not only cover Chatham’s costs for settling a US probe last year, but also damage to its business. In an unusual lawsuit, Chatham claims the outside consultant, founded by former regulators, failed to prevent trading practices that ran afoul of authorities.

Source: Hedge Fund Chatham Demands $100M From Compliance Team After SEC Probe – Bloomberg