Investing
Hedge Fund Demands $100 Million From Its Compliance Team After SEC Probe
- Chatham settled SEC investigation into bond-trading practices
- Anthony Melchiorre’s firm blames consultants for its troubles
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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.