Two CBOT traders charged with fraud

Two CBOT traders charged with fraud

There are 26 comments on the Chicago Tribune story from Jan 10, 2008, titled Two CBOT traders charged with fraud. In it, Chicago Tribune reports that:

The Commodity Futures Trading Commission Thursday charged two traders with defrauding investors by as much as $2.1 million in a carefully timed deal at the Chicago Board of Trade.

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Race Cards

United States

#3 Jan 10, 2008
Greedy Bastards wrote:
If they were Black, they'd get 30 years in a maximum security prison. Their pictures would also be on the front page. As it is, sigh, they'll get 6 months supervision, write a book, open another firm in 2 years, and never skip a beat. Man, must be good (on earth) to be white.
Dude - get over it, stop using the race card, it gets you out of everything anyway.

They'd probably get less because Jessie Jack*ss would have a big protest even though they'd be guilty anyway.
HRV

Chicago, IL

#4 Jan 10, 2008
Used to work there.

Happens way more than you think.

They are idiots, because they got caught. Most of the time, this activity slips by (and it probably happened 5 times today)

I am glad I am out of that continuing criminal enterprise. No wonder all those LaSalle Streeters are republican - criminals stick with criminals.

They are all crooks. Trading is gambling, and unless you are VERY rich, you will LOSE - it is rigged against you. It doesn't need to exsist.
Truth

United States

#5 Jan 10, 2008
HRV wrote:
Used to work there.
Happens way more than you think.
They are idiots, because they got caught. Most of the time, this activity slips by (and it probably happened 5 times today)
I am glad I am out of that continuing criminal enterprise. No wonder all those LaSalle Streeters are republican - criminals stick with criminals.
They are all crooks. Trading is gambling, and unless you are VERY rich, you will LOSE - it is rigged against you. It doesn't need to exsist.
Hmmm, either you didn't work there as a trader or you had some low level low skill blue collar job, you only find republican smart enough to make it in finance or anything else that requires brains.

Since: Nov 07

Elkhart, IN

#6 Jan 10, 2008
Truth wrote:
<quoted text>
Hmmm, either you didn't work there as a trader or you had some low level low skill blue collar job, you only find republican smart enough to make it in finance or anything else that requires brains.
Spoken like a TRUE right-winged idiot. If you didn't live in Elk Grove Village, I might be inclined to think you had some real money. Whatever the case, you live in Elk Grove Village, so I can grasp the idiocy of the comments by people of your ilk.
There's plenty of blue collar people who could bend your mind with nothing more but a mere sentence. Now go vote for Huck, orrrrrrrrrrrrroooooooooon.
JesseJackass

United States

#7 Jan 10, 2008
JesseJacksonJr wrote:
<quoted text>
Spoken like a TRUE right-winged idiot. If you didn't live in Elk Grove Village, I might be inclined to think you had some real money. Whatever the case, you live in Elk Grove Village, so I can grasp the idiocy of the comments by people of your ilk.
There's plenty of blue collar people who could bend your mind with nothing more but a mere sentence. Now go vote for Huck, orrrrrrrrrrrrroooooooooon.
Whatever, if Democrats were so smart they'd be Republicans. Money doesn't mean you're smart jerkoff, btw, I don't live in elk grove, the service I'm connected with's server is probably out by the airport, but I'm sure your too busy cleaning toilets to grasp that concept.
xCBOT

Mobile, AL

#8 Jan 10, 2008
A clearing house can't approve or not approve a trade ! who wrote this article...at least know the business if you are going to write about it.
PDQ

Lombard, IL

#9 Jan 10, 2008
This happens all the time. These guys just got caught.
What's next??
Former Chicagoan

Lake Forest, CA

#10 Jan 10, 2008
Every comment on this thread is posted by a less than sensible person- clearly. First the race card pulled out of nowhere, and then the unnecessary and unprovoked political jabs... Sounds like good old Chicagoland to me. I'm glad I moved out West.
Former Chicagoan

Lake Forest, CA

#11 Jan 10, 2008
A clearing firm can't approve or approve a trade, but they're responsible for the orders getting filled and executed. You have to be a fool to think that certain individual traders on the floor don't finagle numbers and trades for their own profit- especially ones who work for less than reputable ones that no one's ever heard of, like the one mentioned in this article.
xCBOT

Mobile, AL

#12 Jan 10, 2008
I am not going to try to explain the process. You seem like you know it so well...But the clearing house has nothing to do with orders, do you think the clearing house stands in the pit and over see's every trader ? The clearing house is about the last to know what happens in a trading pit.
HRV

Chicago, IL

#13 Jan 10, 2008
False wrote:
<quoted text>
Hmmm, either you didn't work there as a trader or you had some low level low skill blue collar job, you only find republican smart enough to make it in finance or anything else that requires brains.
If you bothered to read my post, I said I USED TO WORK THERE.

Apparently you only saws the "..gop is the suxorz..." and justly so, because they are.

PS - I will bet you 50 I am smarter than you. I am betting so low because I don't want to bankrupt someone who works at 7-11, that would be mean.
jeff

Willowbrook, IL

#14 Jan 10, 2008
used to drink at alcocks with these bozos, not a shocker at all...typical skunks, prison time would be a nice punishment...
West Coast Trader

Gilbert, AZ

#15 Jan 10, 2008
Jerks like this should be locked up! He's offically in the Greedy Pig Club!
Former CBOT Employee

Oak Forest, IL

#16 Jan 10, 2008
This actually DOES happen all the time, and all those within the trading community know it. It is also true that a clearing firm does not approve or disapprove trades. However, Lawrence-Bonfitto's in-house reputation is such that it is not surprising they are clearing for someone who was not smart enough to avoid being caught!
Former CBOT Employee

Oak Forest, IL

#17 Jan 10, 2008
To clarify -- Lawrence-Bonfitto received that sum from the fees they charged the trader. Not noted in the article is that the (former) CBOT also received fees for those trades!!! This was a very poorly researched and reported article.
wow mcgee

New Prague, MN

#18 Jan 10, 2008
Does anyone know how long the average floor traders career is? It is 22 months. Unlike what others have said, the traders on the floor are, as a whole, good, honest people. Just as in any business, there are bad apples...and they got caught. Traders take a bad rap, but that is just because only the best survive. There are many more failed traders than successful traders. They are their own breed...a lot of times. Colorful, fun..work hard, play hard. Believe me, they provide a very important service to the economy and help to keep markets orderly. It is not an easy job being a trader, risking your capital, and constantly worry about having the wrong position on, or not having the same information someone else has. Every one should be campaigning for the traders to stay, because as the markets go electronic and the Goldman Sachs and Citadels of the world start to take over the market-making, it will not be good for anyone.
wow mcgee

New Prague, MN

#19 Jan 10, 2008
...and if you think that there are not funds and investment banks out there that are doing much, much worse, then you are fooling yourself. People make livings following suspicious trading patterns. Lets be glad the bad apples got caught and not crucify everyone else in the process.
xCBOT

Mobile, AL

#20 Jan 11, 2008
well I see a few people have chimed in that actually have some knowledge...the Money from the clearing that in question is actully not a fee. If you had 50 bucks to your name and made 2 mil great ! except what if you had lost the 2 mil then who pays ?? answer: clearing firm. so in short any trader that takes a chance ( in the case I guess it wasn't a chance) but if you take a pop shot you shouldn't get any of the money unless you could have covered the loss. The clearing firm would have had to eat the loss. Look up a guy named Lee Stern..see if he approved what happened to his clearing house
xbot

Miami, FL

#21 Jan 11, 2008
Should Bonfitto known that the trade(s) was/were questionable? Was the trader, based on his trading history, permitted to trade that size (2474 contracts)? If in fact the trader was not permitted to trade that size then the clearing firm received a payoff for not investigating or not informing the CBOT and the clearing corp about questionable trading activity.
xCBOT

Mobile, AL

#22 Jan 11, 2008
In fact the clearing firm did inform the CBOT and the CBOT ruled on this matter

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