Frederic Vincent Malek (born December 22, 1936) is the former President of Marriott Hotels and Northwest Airlines and former assistant to United States Presidents Richard Nixon and George H.W. Bush. Malek served as a National Finance Committee co-chair of John McCain's 2008 presidential campaign and has played a role in every Republican nominee for President over the past four decades. In 2011, he received the Horatio Alger Award.
- 1 Early life
- 2 Political career
- 3 Business career
- 4 Other work
- 5 Personal life
- 6 Published works
- 7 References
- 8 External links
Malek was born in Berwyn, Illinois, of Czech and Croatian descent, the son of a beer truck driver. He was raised in Chicago. He graduated with a Bachelor of Science from West Point in 1959, and served in Vietnam with Army Special Forces as an airborne ranger. He received his M.B.A. degree from Harvard Business School in 1964 and worked as a management consultant for McKinsey & Co.. He and two classmates made a pact to purchase a business together; two would work and support the third while he scouted out opportunities. In 1967, he left McKinsey and, with his partners, purchased Triangle Corp., a struggling hand tool manufacturing company in Orangeburg, South Carolina.
Malek served in the Nixon administration in several different roles, including Deputy Under Secretary of the Department of Health, Education, and Welfare under Secretary Robert Finch, as special assistant from 1970–73 and deputy director of Nixon's re-election campaign. Malek served as deputy chief of the Committee to Re-elect the President in 1972.
As an efficiency expert to Nixon, Malek helped restructure Nixon's staff and officials and streamline the bureaucracy. In his memoirs, Nixon described Malek as a "tough young businessman whose specialty was organization and management."
In the first Nixon administration, Malek designed and directed the "Responsiveness Program", a strategy to replace civil servants with Nixon supporters and to steer government resources to benefit Nixon's 1972 re-election. According to the Senate Watergate report, Malek wrote in a 1972 memo to Haldeman that someone was needed to "take the lead in the program to politicize Departments and Agencies" and to "supervise the patronage operation and closely monitor the grantmanship operation." In advocating the plan, Malek wrote of "substantial risks" to politicizing the Executive Branch and expressed concern that the plan would "undoubtably backfire" if made public; therefore he recommended that "to minimize any links to the President, there should be no directions on this project in writing."
As an advisor to President Nixon, Malek played a significant role in the early days of the Environmental Protection Agency, earning credit from William Ruckelshaus, the agency's first Administrator, and others for helping to ensure that EPA had outstanding top people in its ranks.
Malek was sworn in as Deputy Director of the Office of Management and Budget on February 2, 1973 and served until 1975 when he resigned to re-enter the private sector.
In 1971, Richard Nixon became convinced the Bureau of Labor Statistics (BLS) had come under the control of Democratic rivals and what Nixon termed a "Jewish cabal." He instructed aides Charles Colson and H. R. Haldeman to identify a list of Democrats and "important Jewish officials" at the agency.
Malek provided the data on Democrats after a check of voter registration rolls, but balked at fulfilling the rest of Nixon's query. "I refused four times. The fifth time he came back and gave me a direct order through Haldeman, so I gave him a number. I regret my compliance. It was a mistake." Malek did not have access to BLS employees' religious affiliations, so his list comprised those BLS employees with "Jewish-sounding names", and two months after he sent the list, two of the officials on it were reassigned to "less visible jobs" within the Labor Dept. Slate columnist Timothy Noah, however, asserts that a September 8, 1971 memo from Malek to Haldeman appears to contradict Malek's assertions of limited involvement, in which Malek states he has recommended to the Secretary of Labor "fairly drastic moves" including the "compromise" reassignment of three officials. Documents released by the Nixon library in January 2010 also appear to contradict Malek's statement.
Seymour D. Reich, chairman of Conference of Presidents of Major American Jewish Organizations during the 1990s, said "Malek made a mistake 18 years ago when he agreed to a regrettable request by President Nixon." But he added, Malek "has taken pains to assure the Jewish community that he realizes his error and that he intended no harm. I believe he is sincere." In 2010, Sen. Dianne Feinstein (D-Ca.) called Malek "a man of high principle" who "has proved many times over the years his loyalty to the highest principles of freedom, human rights and international tolerance.". On December 15, 2014 Malek received the Anti Defamation League's Achievement award during a ceremony in Washington, DC.
In September 1989, Malek was appointed by President Bush to coordinate plans for the 1990 economic summit of industrialized nations. The appointment was seen as a test of whether Malek could successfully serve in the administration. Malek had been a deputy chairman of the RNC in charge of the national convention in 1988 and was said to be "on track" for chief of staff in the Bush White House, but resigned to dissasociate the Vice President from negative publicity from the Nixon administration controversy.
Malek served as Director of the 1990 Economic Summit of Industrialized Nations where he was responsible for the preparation and staging of the event.
The appointment proved a success, and in 1992 Bush appointed Fred Malek campaign manager for his re-election. Malek was "responsible for nuts-and-bolts daily management." Malek ran the campaign with fundraiser Robert Mosbacher and pollster Robert Teeter out of a rented office in downtown Washington.
American Action Network
Malek is founder, chairman and one of three primary financial supporters of the American Action Network, a 501(c)(4) center-right think tank established in January 2010 to promote policies based on the principles of freedom, limited government, and strong national security.
Republican Governors Association
Malek also chairs the Executive roundtable meetings of the Republican Governors Association, an organization supporting the election of Republican governors. In 2012 it was announced that Malek agreed to serve as the Republican Governors Association's Finance Chairman. Before gubernatorial elections in 2013 and 2014, the RGA, under Malek's leadership, outpaced the Democratic Governors Association by about $10 million.
In 1975, Fred Malek joined the board of Bethesda-based Marriott Corp., where he oversaw Marriott's hotel business, its design and construction division, and Sun Line Cruises. He was elected executive vice president of Marriott in March 1978, adding to his duties oversight of Marriott's contract food services group. Under Malek's oversight of the hotel and resort division from 1981 to 1988, earnings increased nearly fourfold, or 18 percent a year, during a period that encompassed a recession, industry overbuilding and profit declines by competitors.
In early 1989, Malek joined the Carlyle Group as a senior adviser. On April 19, 1989, he led a group of investors to purchase the Coldwell Banker Commercial Group, the nation's largest commercial real estate services company, from Sears, Roebuck and Company at a price estimated at $300 million.
Malek soon joined Los Angeles investor Al Checchi and Marriott's Gary Wilson in a $3.65 billion, all-cash purchase of Northwest Airlines. The investor group, including representatives of the Bass brothers, and Bankers Trust New York Corp. was joined in the leveraged buyout by KLM Royal Dutch Airlines and Elders IXL, which contributed $480 million in equity. Malek and Checchi joined the airline's 10-member board. Checchi named Malek as president to replace president and CEO John Horn, and the two split the chairman duties held by Steven Rothmeier.
In July 1989, Malek and a group of Carlyle investors bought Marriott's leading airline catering division for an estimated price of $650 million. From January 1, 2002 to December 31, 2005, Malek was a member of the Board of Directors of Fannie Mae.
Thayer Lodging Group
Founded in 1991, Malek and Leland Pillsbury are the two founding partners of Thayer Lodging Group. The US Military Academy at West Point's Thayer Hotel is a 151-room "Historic Hotel of America" property located 50 miles north of New York City on the banks of the Hudson River at 674 Thayer Road in West Point, New York on the campus of the USMA. It is named after Sylvanus Thayer, West Point class of 1808, the "father of the Military Academy." Thayer has a lengthy and successful track record: since forming its first private equity fund in 1991, Thayer has completed 41 hotel investments with a total acquisition cost of approximately $2.4 billion. Thayer's funds currently own a portfolio of 14 hotels and 3,637 guest rooms and, through its investment in Interstate, have ownership interests in 64 hotels with 11,655 guest rooms. On July 1, 2013 Thayer acquired Ritz Carlton-San Francisco to the delight of Malek, who said, "we hope to replicate the success of our Orlando Grand Lakes Ritz Carlton, one of our highest return investments."
On May 21, 2014, Thayer Lodging Group announced its acquisition by Brookfield Asset Management. Thayer continues to own the hotels it acquired during the years prior to its partnership with Brookfield. Malek continues to be actively involved in Thayer's day-to-day operations.
Thayer Capital Partners/Thayer Hidden Creek/HCI Equity Partners
Thayer Capital Partners is a Washington D.C based private equity firm founded by Fred Malek, he is currently listed as the Founder and Chairman of HCI Equity Partners. In 2005 the company acquired automotive components manufacturer Hidden Creek Partners and was renamed to Thayer Hidden Creek. Following the SEC administrative action and a number of other setbacks the company rebranded as HCI Equity Partners, a name it operated under as of 2018.
SEC administrative action
On August 12, 2003, the SEC filed a civil fraud lawsuit against former Connecticut state Senate Democratic Majority Leader William DiBella for participating in a fraudulent scheme to invest $75 million of the state pension funds with Malek's firm, Thayer Capital Partners. The SEC said that Thayer failed to disclose payments to DiBella who performed "no meaningful work" and was hired by Thayer at the request of the state treasurer. Political corruption was widespread in Connecticut at the time but this case captured attention because of its audacity and the scale of corruption. On May 18, 2007, DiBella and North Cove were found liable for aiding and abetting Silvester's intentional violations of the Securities Exchange Act of 1934, and Thayer was found in negligence of Investment Advisers Act of 1940. Thayer paid a civil penalty of $150,000, and Malek personally paid a fine of $100,000.
Former Connecticut State Senator and Representative DiBella testified under oath in federal court that his relationship with Malek went beyond the latters official position at Thayer, he testified that his contract obligated him to assist Malek personally with "ongoing investor relations." and that Malek personally told him "I need you for the new treasurer" (the new treasurer being the incoming Denise Nappier). The scheme moved much of the Connecticut State Retirement and Trust Fund into high-risk, long term, non-liquid private equity funds (such as Thayer's). This unbalanced the investment plan, increasing the risk of a long term failure.
Virginia government reform commission
On May 7, 2010, Virginia Governor Robert McDonnell appointed Malek to chair a 31-member commission to find efficiencies and savings in government. Critics objected to Malek's appointment based on both the BLS and SEC administrative action. In particular his ant-semitic past was singled out for criticism, less attention was paid to the Connecticut racketeering case. McDonnell responded that he did not know of these parts of Malek's past.
American Friends of the Czech Republic
Malek, of Czech descent, is the Chairman of the American Friends of the Czech Republic. Following the April 17th, 2013 explosion that left West, TX devastated, Malek and the Friends of the Czech Republic donated substantial funds to help put the town of primarily Czech descent back on its feet; the group even sponsored an essay contest for two children to travel on an all expenses paid trip to the Czech Republic. Following unprecedented flooding in Prague and nearby villages in early June, 2013, Malek traveled to the city to meet with Ambassador Norm Eisen and local officials to pledge aid and discuss ways to help the region recover.
Major League Baseball
Malek was a co-owner in the Texas Rangers along with former President George W. Bush and other investors. After selling his stake in the team, Malek earned his money back fivefold.
Malek played a major role in recruiting the Montreal Expos franchise to Washington, D.C. Working alongside city leaders, Malek set up the Washington Baseball Club, an investment group with partners that included Jeff Zients, Steve Porter, Paul Wolff, Frank Raines, Jim Kimsey, Colin Powell, Vernon Jordan and David Bradley.
In 2008, Malek was nominated to the Board of Visitors of the United States Military Academy at West Point by the President of the United States at the time, George W. Bush. He was the 2011 Chairman of this board. He has been a philanthropic support of West Point, underwriting the Malek Tennis Center and also lead West Point's largest ever capital campaign to fund the Frederic Malek West Point Visitors Center in 2017. "Harvard was extraordinarily helpful in teaching me to analyze problems on a purely academic front," Malek has said. "It did more than that, actually. But in terms of overall effect, it was not even close to the U.S. Military Academy in making me who I am. West Point builds the entire structure of the man, the values of the man. It develops you in the whole." This appointment was a surprise as Malek had been found liable for fraudulent behavior in a Federal Court in 2007. He was a core member of a racketeering group that defrauded the Connecticut State Retirement and Trust Fund and was ordered by the court to pay $100,000 in addition to penalties imposed on his company Thayer Capital Partners (named after Sylvanus Thayer, an early superintendent known as the father of West Point). This conduct was controversial because it is in direct violation of all parts of the Cadet Honor Code which states that "A Cadet will not lie, cheat, steal or tolerate those who do."
On Tuesday, May 29, 2012, Marymount University celebrated the formal renaming of its School of Health Professions in honor of Fred and Marlene Malek. Mrs. Marlene Malek graduated from the school in 1979 and is a member of the Marymount Board of Trustees. The School of Health Professions was renamed "Malek School of Health Professions" to honor the Maleks' ongoing commitment to Marymount University.
Fred and Marlene Malek were honored with the Outstanding Philanthropist Award by the Association of Fundraising Professionals' Washington, DC, Metro Area Chapter at their National Capital Philanthropy Day in 2012.
In 1959, at age 22, Malek was arrested along with five other men in Vicary's Park near Peoria, Illinois, after police found their car spattered with blood, and a dog that had been skinned, gutted and spitted over a barbecue pit in the park. Malek and the other men were charged with cruelty to animals, but the charges against Malek were dropped after one of the others confessed to killing the dog and said he acted alone. Malek has claimed that he did not participate in the incident.
Malek is a "fitness fanatic" who has kept up physically healthy habits since West Point. A skiing accident in the mid-1980s left Malek with an artificial hip, which forced him to switch from running to lifting weights, swimming and bicycling.
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-  Ray Cromley, Times Daily, September 6, 1972.
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- The Senate Watergate Report, 1974, Chapter III, citing December 23, 1971 memo from Malek to Haldeman.
- EPA Alumni Association: EPA Administrator William Ruckelshaus and his former assistants recall the role of Fred Malik in helping the new agency personnel staff itself with top people, Video, Transcript (see p7).
- "Nixon's Jew count: The whole story!", Timothy Noah, Slate, Sept. 26, 2007.
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- "Marriott will sell catering unit to one of NWA's buyers", Gellene, Los Angeles Times, July 12, 1989.
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- "Thayer Lodging Group, Inc., Announces its Acquisition by Brookfield Asset Management. In response to the merger of the two companies, Fred Malek said "this transaction brings together two companies that share similar investment objectives, management approaches and a common outlook on the global real estate market"". PR Newswire. Thayer Lodging Group. Retrieved 1 October 2014.
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|last1=in Authors list (help)
- "The Honor Program". usma.edu. United States Military Academy. Retrieved 26 June 2018.
- "Governor, University Laud Maleks' Philanthropic Efforts in Health-Care Arena". Arlington Sun Gazette. 4 June 2012. Retrieved 4 June 2012.
- Fred Malek is McCain's new moneyman, Washington Examiner, Jeff Dufour, February 12, 2008.
- Fred Malek Blog
- Fred Malek | Chairman, Thayer Hidden Creek official biography
- Brokering Power in Business and Politics (Washington Post, April 21, 2008)
- Register of the Frederic V. Malek Papers, 1968-1977
- SEC filings - Malek Frederic V
- NameBase - Frederic V Malek (Archive[dead link])
- Nixon Presidential Library Archives - Frederic V Malek