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. Melchiorre and Chatham agreed to pay more than $19 million in April to settle Securities and Exchange Commission accusations that the firm improperly traded bonds of American Media, the longtime owner of the National Enquirer tabloid. Wall Street’s top regulator said Chatham used outside brokerages to move the investments at elevated prices among funds it managed. “Chatham sought, received and followed advice from ACA that certain trading practices did not run afoul of the SEC’s cross-trading rules,” Melchiorre, 56, said in a statement through a spokesman. “ACA gave it improper advice and failed to flag these trades as problematic.” The hedge fund intends to vigorously pursue the matter, holding ACA accountable, he said. https://www.bloomberg.com/news/arti...m-chatham-demands-100-million-after-sec-probe If there is one "department" that I disdain in any financial entity, it´s the bloody Compliance department aka "business destroying department". Chatham should go for $1 Billion to send a message!