Hedge Fund Chatham, Founder Pay $19 Million in SEC Case Over Bond Trading
- Regulator alleged Chatham trading amped up price in AMI bonds
- Firm, Founder Melchiorre didn’t admit or deny allegations
The Securities and Exchange Commission headquarters building in Washington, DC.
Photographer: Joshua Roberts/Bloomberg
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Hedge fund Chatham Asset Management and its founder, Anthony Melchiorre, agreed to pay more than $19 million to settle US allegations that the firm improperly traded bonds in a media company that owned the National Enquirer.
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 those of similar securities. Neither Chatham nor Melchiorre admitted to or denied the SEC’s allegations.