The SEC order found that these trades were executed at prices Chatham and Mr. Melchiorre proposed and had the effect of increasing the price of the AMI bonds at a significantly higher rate than the prices of similar securities. Sanjay Wadhwa, deputy director of the SEC's enforcement division, said in a statement that Chatham's trading in AMI bonds had the effect of "increasing the prices of those generally illiquid securities in a way that was disconnected from economic reality. Serving as the lead backstop investor in Vericasts multibillion dollar refinancing transactions in 2020 and 2021. Under Republican governors, the two states committed at least $625 million of pension cash into Chatham Asset Management, a high-risk hedge fund that has taken control of theNational Enquirers parent company, American Media Inc., which is at the center of the federal investigation into President Donald Trumps 2016 campaign. Grimstad claimed in filings that Chatham had manipulated iPayment bonds to seize control of the company. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices By Sabela Ojea. Resources. Federal regulators have been asking questions, too. 13 Beds 11 Baths 5920 sqft. After stints at Donaldson, Lufkin & Jenrette, and Goldman Sachs Group, Melchiorre landed at Morgan Stanley in 1998 where he rose to head the junk-bond trading group. The examination that led to the investigation was conducted by members of the Division of Examinations' Private Funds Unit, including Jennifer Duggins, Christopher Marino, and Michael Collins. For the sake of McClatchys approximately 2,800 employees (for comparisons sake, The Star alone had more than 2,000 employees about 20 years ago), Im sorry to say things could get a lot worse before theres any chance of getting better. Currently investing in Vericasts term loan facility due 2026. Frank Casey will take over as head of the New Jersey Resources business, effective July 1. A Chicago-area kid who studied economics at Northwestern and got an MBA from the University of Chicago, his high-toned education didnt reduce the intensity of the former high-school football star. Jay Youngdahl, a former Harvard researcher who has served as a steelworkers pension trustee, said state officials may be able to take action to try to protect retiree investments. Chris Christies administrationmoved$300 millionof pension cash into the Chatham Fund, LP, which hasowneda stake in AMI, according to SEC records. The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. Wall Streets main regulator has been looking into opaque markets since the financial crisis, uncovering a wide swath of bad behavior from lying salespeople to bogus quotes from brokers. With McClatchy, the hedge fund also designed a trade aimed at reaping a windfall through credit-default swaps. Thanks, Tracy. Chicago, IL 60601, Court backs SEC in lawsuit challenging proxy-rule rescission, Labor Department addresses FAQs for multiemployer pension plans receiving SFA, U.S. regulators propose strengthening oversight of non-banks, Sponsored Content: EDHEC Climate and Finance Special, The Institutional Investors Guide to ESG Investing, The Plan Sponsor's Guide to Retirement Income, 2023 Defined Contribution East Conference, SEC's rules moving too fast, industry says, SEC proposes requiring electronic submissions for nearly all forms, SEC seeks $2.4 billion in funding to boost staff numbers. /s/ Anthony Melchiorre Anthony Melchiorre Managing Member Contacts. Chatham Asset Management to Pay $19.3M to Settle SEC Charges. Local journalism has never been more vital, Mr. Forman said, and we remain steadfast in our commitment to delivering on our mission and continuing to serve our communities.. Find more info on AllPeople about Anthony Melchiorre and Chatham Asset Management, as well as people who work for similar businesses nearby, colleagues for other branches, and more people with a similar name. Californias pension fund also has a $235 million stake in a Chatham fund. Its bonds staged an improbable rally last year, charting a steady climb over 50% from 80 to 125 cents on the dollar. The merger took place in November 2017, about a year after Chatham took majority ownership. The hedge fund is run by Anthony Melchiorre, a GOP donor who reportedly met with the president and AMI CEO David Pecker at the White House soon after Trump took office. Then theres American Media. Use of this website is subject to its Terms of Use | Privacy Policy | Your California Privacy Rights/Privacy Policy | Do Not Sell My Info/Cookie Policy. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Improper Fixed Income Securities Trading. Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. By clicking Accept, you consent to the use of ALL the cookies. In 2016, the Financial Industry Regulatory Authority opened a review of the brokerage Seaport Global Securities that, while focusing on that firm, included an examination of its relationship with Chatham, people familiar with the matter said. Thats just not how bond math works, said Michael Terwilliger, a portfolio manager at Resource Credit Income Fund. Its no wonder Chathams side would enlist Cohen, long known for his doggedness on behalf of Trump. Melchiorre and his wife have donated more than $100,000 to Republican candidates and party committees since 2010. Chatham said at the time that the allegations were baseless and without merit. The SECs investigation was conducted by Daphne Downes, Brian Fitzpatrick, and Lindsay S. Moilanen, with assistance from Carina Chambarry and Raymond Wolff of the SECs Division of Economic and Risk Analysis. Within weeks, the notes were back at about par. Just sad. In an April 3 announcement, the Securities and Exchange Commission said that Chatham Asset Management LLC and founder Anthony Melchiorre agreed to pay more than $19.3 million in combined . Alden Global Capital controls roughly 200 outlets through its newspaper chain, MediaNews Group. For the low-profile Chatham, American Media has become a high-profile headache. Chatham and Melchiorre agreed jointly and severally to pay $11 million in disgorgement and around $3.4 million in prejudgment interest. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. Performance numbers calculated through 2022-05-16. That's why all these financial players Chatham Asset Management here, Alden Global Capital, Fortress Investment Group, and Apollo Global Management elsewhere find newspapers such a hospitable environment. Chatham Asset Management, LLC Anthony Melchiorre Managing Member Dear Mr. Melchiorre, We are writing to follow up on our discussions with regards to your non-binding, conditional indication of interest to acquire R. R. Donnelley & Sons Company. They wanted to kill a lawsuit by the former head of another Chatham company. Shortly after, Postmedia announced it would shut down all 24 newsrooms it had acquired, except for one, according to public filings. Federal regulators have been asking questions, too. Yet, over the years questions have swirled around Chatham. Melchiorre, 55, owned roughly 70 percent of the company during the relevant period and is the managing member of the general partner entity for each of the funds. As a subscriber, you have 10 gift articles to give each month. Something other than fundamentals are playing a huge factor in those bonds., In response to questions about the prices, Melchiorre sent a statement through a representative: We have tremendous conviction in our fundamental thesis on late stage media consolidation in North America and competitors are free to express opposing views.. Another McClatchy creditor, the New York hedge fund Brigade Capital Management, was named in a public filing as a partner of Chatham in the April bid. These cookies do not store any personal information. I love your lead sentence, Fitz. Former FEC commissioner Trevor Potter, the head of the nonprofit Campaign Legal Center,last week said the situation presents a serious legal problem for AMI. If those legal troubles end up depressing the market value of AMI, teachers, firefighters, cops and other public employees also could potentially suffer losses at a time when their pension funds are alreadyfacingshortfalls. Finally, they agreed to prohibitions from serving in certain positions in the investment industry, pursuant to the Investment Company Act. If asked to vote, I can assure you I will be voting for us to divest, he said. He is the founder and principal owner of Chatham. At least five other traders whove looked at the bonds say their prices seem too good to be true. An SEC spokesman declined to comment. This is all very bad news for The Kansas City Star and the other McClatchy papers. On Friday he ordered remaining ones back to the office. Grimstad knows what its like to be under a tabloid-like glare. Indications are hes been with Chatham more than 15 years. The hedge fundfinalized its dealto buy an ownership stake in AMI in the summer of 2014. Following the successful launch of its Newport Centre location last fall, the brand recently unveiled its newest restaurant d[], JLL secured a long-term lease for 3,400 square feet for Rubinstein Plastic Surgery Center LLC, a cosmetic surgery practice, m[], The CEO of Toorak Capital Partners offers an analysis of the current residential real estate market, the [], Video Replay: NJBIZ Leaders In Digital Technology 2023, Congratulations to the 2023 NJBIZ Leaders in Law honorees (updated), Introducing NJBIZ Connect Your Guide to New Jersey Businesses, NJBIZ unveils 2023 Leaders in Finance Lifetime Achievement Honoree, Introducing the 2023 NJBIZ Leaders in Finance honorees (updated). As a subscriber, you have 10 gift articles to give each month. Despite the macroeconomic warnings of a recession and job[], A Cherry Hill-based financial institution is back on top of Small Business Administration lenders in New Jerse[]. Chatham has never had any relationship with, spoken to or compensated Michael Cohen, a representative for the firm said in response to queries from Bloomberg. No, I dont think hell be visiting the newsroom and talking about Chathams plans for the paper. Grimstad claimed Chatham artificially drove down the price of the bonds by almost 30% in a single trade, effectively blocking a debt-restructuring effort so it could capture control of the company. After Grimstad filed his suit, the Chatham camp countered, claiming Grimstad had used company money to pay a Las Vegas escort $4,000 for sexual activities and later hired her and her mother. But opting out of some of these cookies may have an effect on your browsing experience. Sue, Chatham lawyers warned, and well drag your family into this, according to court testimony. Chatham is not a newcomer to the news industry. Download 13F Summary Torstar closed all but four of the 17 papers it had received. Many hedge funds look to acquire companies that, while they may be failing, still generate a lot of cash. But many dailies remained sources of reliable cash flow, making them attractive investments for owners focused on maximizing returns. Chatham Asset Management, LLC Anthony Melchiorre Managing Member Dear Mr. Melchiorre, We are writing to follow up on our discussions with regards to your non-binding, conditional indication of interest to acquire R. R. Donnelley & Sons Company. Playing tough is the Chatham way. And your word synedoche drove me to the online dictionary. CHATHAM, NJ Washington D.C., April 3, 2023 The Securities and Exchange Commission today charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in connection with improper trading of certain fixed income securities. The notes dont pay regular interest in cash, a sign of their inherent riskiness. The number of journalists at its Vancouver papers the Vancouver Sun and The Province has been cut in half, according to Mr. Gibson. Activist Investor Grimstad claimed in filings that Chatham had manipulated iPayment bonds to seize control of the company. As part of it, Postmedia traded 17 of its papers to Torstar in exchange for 24 Torstar papers. The company regrets any distress that may have been caused to the Grimstads by the public filing of the litigation against them, Chatham-controlled iPayment said at the time. Best known for its luridEnquirerheadlines (Aliens Are Living in My Toilet), AMI has been beset by a difficult environment for print publications. Advisor Info 13D/G Insider (Form 4) Ownership/Private Fund Data Hedge funds and private equity firms have had a growing presence in the news industry, to the chagrin of press advocates who argue that financial firms do not make civic-minded stewards of a business built largely on holding the powerful to account. From 2016 through 2018, one Chatham-advised client sold certain American Media Inc. bonds while a different Chatham-advised client purchased the same bonds through various broker-dealers, according to the SEC. 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Hedge Fund In the fall, Alden took a 32 percent stake in Tribune Publishing, the owner of The Chicago Tribune and several other major papers. Few people noticed, including some of the chains employees. The new, supersize version of Gannett resulted from a merger last year between Gannett and the parent of GateHouse Media. Named after the leafy suburb where its based, Chatham has posted average annual returns of about 10 percent, trouncing many of its competitors. Contact. AMI represents a large portion of Chathams portfolio. Chatham, an investor in the company since 2009, is its largest creditor. Chatham Asset Management . Behind the salacious headlines was an issue thats drawing scrutiny from regulators: bond prices. What it does, apparently, is make its clients lots of money. Last year, barely three months before Christie left office, his administrationsteeredanother $200 million to another Chatham vehicle. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. In that same period, the editorial ranks at The National Post, its flagship paper, have been reduced by about a third, according to three of the people. They are scrappy, and they arent afraid of litigation to defend their investments, said Leon Cooperman, a recently retired hedge fund mogul who is a Chatham investor and part owner of American Media, the Enquirers publisher. Chatham owns the majority of Postmedia shares and the debt, but because of a Canadian law that limits non-Canadian control of media properties, it cannot exercise full control over the business. The Securities and Exchange Commission said the trades were executed at prices that lifted the value of American Media Inc. bonds at a significantly higher rate than . That made it one of the best performing bonds in the world at the time. Importantly, the trading occurred more than four years ago in funds that have since been closed. His behavior infuriated some senior executives, according to former colleagues. This will schedule a job to export all requested 13f holdings data for this filer. The deal was partly financed by one private equity fund, Apollo Global Management, and Gannett is now controlled by another private equity fund, Fortress Investment Group, which is owned by the Japanese conglomerate SoftBank. Your California Privacy Rights/Privacy Policy. of the acquiring company to visit the newsrooms of the papers being bought and to speak about the companys plans for the future and answer employees questions. That offer included the debt assumed by the hedge fund and its partners. New York, NY 10017-4036, Chicago Office You are limited to the prior 8 quarters of 13F filings. I cannot talk on behalf of the entire SIC, but I will be doing everything in my power to convince a majority to vote the same way.. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. Chathams track record as an owner of a major newspaper chain is grim, according to 10 current and former Postmedia employees who spoke with The New York Times on the condition of anonymity because they feared retaliation. The ugly litigation with the tech executive was resolved with a less-than-remorseful apology and a multimillion-dollar payday for Grimstad. A bankruptcy court hearing on the matter is scheduled for July 24. The Securities and Exchange Commission has stepped up examinations of various bond funds lately, inquiring about their relationships with brokers and how they value debt. The fund, Chatham Asset Management, acquired two-thirds of Postmedia, the publisher of The National Post, The Vancouver Sun and several other major Canadian papers, by trading a portion of the money it was owed for the majority ownership stake. Tenth Floor How fitting. In recent months, Postmedia closed approximately 15 community publications and laid off 120 employees in response to the Covid-19 pandemic, The Toronto Star reported. With roots going back to 1857, McClatchy, a consistent winner of top journalism awards, was one of the last major family-run news publishers. In 2016, the Financial Industry Regulatory Authority opened a review of the brokerage Seaport Global Securities that, while focusing on that firm, included an examination of its relationship with Chatham, people familiar with the matter said. The regulator declined to comment. Enjoy your pension, which is fleeting. Thats something we wrestle with, he said. Altogether, the company has cut over 1,600 employees since 2016, or 38 percent of its staff, based on company filings. This story was co-published with MapLight and Capital & Main. Chatham took on more American Media debt in recent months, getting Seaport to arrange a deal after Credit Suisse Group AG got cold feet amid public furor over the publishers antics in the 2016 presidential election. Grimstad claimed Chatham artificially drove down the price of the bonds by almost 30 percent in a single trade, effectively blocking a debt-restructuring effort so it could capture control of the company. SEC form, multiple filers or classes of filers, and much more.***. Any statement or implication otherwise is false. Chatham hasnt denied Cohens participation in the meeting. What is the average price for a luxury home in Grasse, France? This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. It needs to be bolstered and rebuilt, not milked for whatever profit it can still produce., Chatham Hedge Fund Has the Winning Bid for McClatchy Newspapers, https://www.nytimes.com/2020/07/12/business/media/hedge-fund-mcclatchy-newspapers.html. Chatham Asset Management and its founder, Anthony Melchiorre, have agreed to settle charges they violated U.S. laws designed to protect investors when they bought and sold bonds in. And as it happened, the hedge fund owned the tabloid, the National Enquirer, that he had just used to try and catch and kill stories about the future president. The company did not immediately return NJBIZs request for comment about Chathams letter of interest. Solutions. Melchiorre also served as the. I wouldnt even begin to consider owning it at that level. Sports coverage has been trimmed. Tony Ridder came to the newsroom and spoke, although he was such a stone of a personality I dont specifically remember it. Fast Company & Inc 2023 Mansueto Ventures, LLC, State pension funds invested millions in hedge fund that controls National Enquirer parent. A Chicago-area kid who studied economics at Northwestern and got an MBA from the University of Chicago, his high-toned education didn't reduce the intensity of the former high-school football star. What asset class is best for corporate plans' growth investments when using LDI? As far as leadership goes, I feel like the way they talk about it, were almost operating like a sales agency, not a news service, Mr. Gibson, the union leader, said. Finra, the brokerage industrys main watchdog, subsequently concluded its review, and its unclear what if anything resulted from it. These cookies will be stored in your browser only with your consent. 6LinkedIn 8 Email Updates. CHATHAM ASSET HIGH YIELD OFFSHORE FUND, LTD. CHATHAM ASSET PARTNERS HIGH YIELD FUND, L.P. Michael Eisner came to the newsroom. NJBIZ, New Jerseys leading business journal, provides 24/7 business news coverage and events honoring top business professionals. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. But just on the outside chance he does come around, would somebody please take his picture and send it to me? A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. Washington, D.C.--(Newsfile Corp. - April 3, 2023) - The Securities and Exchange Commission today charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in . It was a lucrative move. The headquarters of Chatham Asset Management in Chatham, N.J. . Yet its junior bonds offer yields comparable to more senior securities. Necessary cookies are absolutely essential for the website to function properly. But in recent years it has increased bonuses for its top executives and added more debt, angering the news staff. Powered and implemented by Interactive Data Managed Solutions. You also have the option to opt-out of these cookies. Managers Inv. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. In 2013, former New Jersey Gov. Thats exactly what happened. In its year-end financial results released March 3, Vericast reported 2021 consolidated net revenues decreased 2% and total adjusted EBITDA increased 6.2% compared with 2020. But Melchiorre? Hedge fund manager Chatham Asset Management and founder Anthony Melchiorre agreed to pay $19.4 million to settle Securities and Exchange Commission charges that the firm improperly traded. I would bet, in fact, that not one Star employee not even president-publisher-secretary and head of security Mike Fannin will ever see him. Even before the pandemic, Postmedia saw a falloff in advertising, once the lifeblood of newspapers. If they dont do a good job serving their community, the profits wont follow.. House in Cabris, Provence-Alpes-Cte d'Azur, France. Postmedia is under investigation by Canadian regulators over a deal with a rival publisher, Torstar, the owner of The Toronto Star, that resulted in the closing of 36 newspapers and the loss of nearly 300 jobs. We have less boots on the ground, Mr. Gibson said. Pressure has been building. New Jersey, which has generated a more-than 12% annualized return on its investment, is entitled to withdraw $355 million from one of Chathams funds at the end of this year. Cohens assignment: Get Carl Grimstad, the recently fired CEO of payments processor iPayment Holdings, to the table. John Kasichs appointeescommitted$125 million to Chatham. Thats just not how bond math works, said Michael Terwilliger, a portfolio manager at Resource Credit Income Fund. It doesnt produce a product or render a significant service to society. Clearly, the writing is on the digital wall. "As our order finds, Chathams trading in AMI bonds had the effect of increasing the prices of those generally illiquid securities in a way that was disconnected from economic reality," said Sanjay Wadhwa, Deputy Director of the SECs Division of Enforcement. Marian Needham, the executive vice president of the NewsGuild, the union that represents employees at some McClatchy newspapers, said in a statement that McClatchy needed to adopt existing collective bargaining agreements. Its bonds staged an improbable rally last year, charting a steady climb over 50 percent from 80 to 125 cents on the dollar. That made it one of the best performing bonds in the world at the time. The regulator declined to comment. The companys C.E.O., Anthony Melchiorre, doesnt give interviews, and no photo of him is available online. Chatham and Melchiorre agreed to pay . The next year, Seaport received internal complaints that brokers there agreed to buy bonds from Chatham with the promise the hedge fund would repurchase them at higher prices, according to people with knowledge of the situation. apartments for long term rent in kiev ukraine, loud house fanfiction no such luck carol,
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