As I have previously written, the Bernie Madoff scandal ten years ago was the worst financial scandal in American history. It involved more money than the OptionSellers/INT FCStone scandal of 2018. Several of books have been written about it. One is ”Madoff, the Wizard of Lies ”.

Poor Bernie Madoff is serving a 145 year sentence in jail. His crimes fell under the jurisdiction of the SEC, which is much tougher than the CFTC. It doesn't appear that the CFTC plans to do anything at all about the INT FCStone scandal.

The Madoff scandal dwarfs the OptionSellers/INT FCStone scandal in terms of the amount of money. The Madoff scandal involved billions of dollars while the OptionSellers/INT IF stone scandal involved only a few hundred million dollars. Unfortunately, it is impossible to determine exactly how much because the CFTC will not disclose it. I have filed some FOIA requests but the only thing I have gotten back is an acknowledgement of my requests. Perhaps they do not know or don't want to admit it.

I told one Commissioner that I was writing a book on this scandal. As a young Senate General Counsel and Staff Director I drafted the Commodity Futures Trading Commission Act of 1974. When I went into the private practice my first client was the Chicago Board of Trade. I represented them until they were merged into the CME, and then represented other clients, ending with the Futures Industry Association until John Damgard retired. Along the way I did pro bono work as a member of the Coalition for Futures Reform.

The most surprising thing I have read recently is this story that most of the Madoff money has been clawed back. Click on the Bloomberg article below to read it.

Michael R. McLeod