On December 31, 2014, the John Lothian Newsletter published Mr. Lothian’s own opinion regarding the allegations James Koutoulas has made and publicized about the nominations of public directors by the NFA Board’s Executive Committee. Mr. Lothian was right on point.
In a complaint filed with the CFTC, Mr. Koutoulas claims the NFA violated its own rules when it improperly nominated public directors to its Board of Directors in January, 2014. The NFA has denied the allegations, and went to the extent of hiring outside counsel to investigate the charges. That report, issued in February 2014, “concluded that all of the incumbent public directors had been nominated in accordance with NFA’s Articles.”
During his “Town Hall” webcast on December 19, 2014, Mr. Koutoulas, repeated the accusations, including stating that the behavior of members of the NFA staff was “heinous,” according to Mr. Lothian, and called for resignations and staff retirements. The webcast was then reported upon in an article in Crain’s Chicago Business.
Also on December 31, 2014, Chris Hehmeyer, Chairman of the NFA sent a letter to NFA Members fully explaining the circumstances of the incident and stating that Mr. Koutoulas’ allegations are “wholly without merit.”
For the first time in our 23-year history and in response to our members’ suggestions, the NIBA endorsed candidates for the NFA Board of Directors for the current election. We found that of the five candidates for the CTA/CPO position, only Mr. Koutoulas and John Roe represented the smaller registrant, which mirrored the business model of the vast majority of NIBA members registered in that category.
Now Mr. Koutoulas finds himself in a hotly contested election for his NFA Board position with two candidates put forth by the NFA CTA/CPO Nominating Committee.
All of us on the NIBA Board of Directors know the NFA staff. We know these individuals to be good people, who work hard at their responsibilities. While we don’t agree with the NFA on every action it takes, those differences are responded to by staff promptly, and discussed openly. Why would any NFA staffer compromise this good reputation and relationships with registrants over an occurrence such as Mr. Koutoulas describes?
As Founder and Chairman of the Board of the NIBA, I share John Lothian’s opinion on this subject. Mr. Koutoulas should offer up substantial proof of his version of events. If he cannot, he should withdraw from the election and resign from the NFA Board.
