For their part, the company also declined to comment as to whether Frigo’s activities might have violated securities law.
“Ms. Frigo is not currently, nor was she ever, a Medallion employee. She is no longer associated in any way with the Company. We are not aware of anything she said publicly that was not accurate or otherwise reflected in already publicly available information, and any comments she is alleged to have posted under a pseudonym she would have posted unbeknownst to Medallion,” a company spokesperson wrote in an official statement.
By November, rumors of a Frigo/Stanley scheme spread among certain investors and traders that follow Medallion, the sources noted, adding that as word traveled, Medallion deleted the HuffPo stories from its website.
By November 28, Frigo had made several changes to her LinkedIn profile, removing “Freelance Contributor to the Huffington Post” from her current position, and changing her position at Medallion from “Investor Relations” to “Consultant,” the sources said, noting that two days later the reference to Medallion was removed altogether.
Medallion’s financial situation is currently on shaky ground. It is facing a lawsuit from one of its lenders, Metropolitan Bank, for having failed to repay a roughly $10 million loan when it came due last October. An arbitrary ruling against the company could trigger a cross-default amongst other facilities in its $350 million debt stack. Recent reports by the Federal Deposit Insurance Corporation also indicate that the company’s subsidiary Medallion Bank is likely in breach of its minimum leverage ratio requirement.
Alexander Gladstone is a Debtwire reporter covering distressed debt. He can be reached at Alexander.Gladstone@debtwire.com and on Twitter at @gladstonea.