NFA board of directors member James Koutoulas has made some troubling accusations about the nomination of public directors by the NFA Board’s Executive Committee. He needs to come forth with some convincing smoking gun, proving the conspiracy and cover up he is accusing NFA staff and fellow Executive Committee members of, or resign from the board.
Word of Koutoulas’ accusations filtered out of a Commodity Customer Coalition Town Hall webcast and were reported by Lynne Marek of Crain’s Chicago Business.
Koutoulas claims the NFA Executive Committee did not properly nominate the public directors to the NFA Board. The chairman of the Executive Committee, and of the the NFA Board, Chris Hehmeyer of HTG Capital and Non-Executive Vice Chairman of Wedbush Futures, wrote a letter to NFA members yesterday denying all of Mr. Koutoulas’ charges. Hehmeyer even went to the extent of getting outside counsel to investigate the charges and found “outside counsel’s report concluded that all of the incumbent public directors had been nominated in accordance with NFA’s Articles.”
Koutoulas is in the midst of an election campaign to return to the board, to which he was elected to as a rogue candidate two years ago. Two years ago, I endorsed Koutoulas and fellow rogue candidate John Roe for the board representing CTAs and CPOs following their success in helping MF Global customers recover their funds from the bankrupt futures commission merchant and following the collapse of PFG Best..
This year, I am not making any endorsements, at least in the CTA/CPO category. I know better than to stick my head into the middle of a dogfight.
The most troubling aspect of this whole controversy is the good people who Koutoulas is claiming are in on the conspiracy. I know most of them personally/professionally and they are not the kind of people who would so carelessly throw away their good reputations and those of their company’s for something so little.
Crain’s reported Koutoulas has filed a complaint with the CFTC. Based on his accusation against NFA General Counsel Tom Sexton, which Koutoulas called “heinous,” Koutoulas should be bringing a complaint to the American Bar Association. He has not, according to Crain’s.
I like Koutoulas and Roe and cheerfully endorsed them the last time around. Koutoulas’ accusations are troubling, as I commented at the time. If Koutoulas can’t offer some kind of substantial proof, such as fellow Executive Committee members willing to make a statement of support for his version of events, then he should resign from the board and withdraw from the election. As it is, the Executive Committee has made a statement which says “The Executive Committee considers each of the allegations made by Mr. Koutoulas to be wholly without merit.”
Mr. Koutoulas, put up or step aside.
(Editor’s Note: John Lothian News is supported by the NFA in the form of sponsorship and paid newsletter subscriptions. In 2014, John Lothian Productions signed a contract to produce videos for the NFA. In 2014, the NFA substantially reduced the number of paid subscriptions to the John Lothian Newsletter. I was assured by NFA President Dan Roth that this had nothing to do with my endorsement of rogue NFA Board candidates Douglas Bry and Ernest Jaffarian last year. James Koutoulas wanted me to share this information with my readers.)