When I was the young general counsel of the Senate Agriculture Committee I drafted the Commodity Futures Trading Commission Act of 1974. I did so with the help of Doctor Richard Sandor, the young economist of the Chicago Board of Trade. I certainly would not have had sufficient expertise without him.
When I left the Senate in 1978 to go into private practice, my first client was the Chicago Board of Trade. It remained my client until It was
acquired by the Chicago Mercantile Exchange in 2007.
I did pro bono work after the Great Recession of 2008 as a member of The Coalition for Futures Reform. This effort was to seek remedies for the economic meltdown rather than seek to find fraudulent activity of any individual trader. It resulted in the enactment of the legislation known as Dodd-Frank.
Over the years, a complete body of law and regulation has developed. There were some little incidents when traders tried to get around the law and paid the price. However, there were never any major scandals until now. A few months ago a major scandal erupted involving OptionSellers.com, a solely owned hedge fund of James Cordier.
There is a tearful mea culpa by Cordier recorded on YouTube as well as commentary by other hedge fund operators saying what he did was wrong. There was a bigger scandal when Bernie Madoff used a Ponzi scheme to cheat investors out of even more money. However, this was under the jurisdiction of the SEC. Madoff is serving his sentence of 145 years in jail.
There is no indication of such venality in the case of James Cordier. However, he used unbelievably bad judgment investing his 170 clients money. There will be Congressional hearings, and steps will be taken to insure that this never happens again.