Hedge Fund Chatham Settles SEC Case on Improper Bond Trading (1)

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.

Wall Street’s main regulator said Monday that Chatham and Melchiorre traded bonds in American Media, the publisher known for putting out ...