- Lee Stern
Lee B. Stern, born in 1927 in
Chicago, Illinois is the longest tenured trader at theChicago Board of Trade . He has been one of the most successful traders in the commodities market throughout his time there, and is well known for his involvement in the Chicago sports scene as well. He was the President of theNorth American Soccer League 'sChicago Sting , and is currently a minority owner of theChicago White Sox .Early life
Stern attended Senn High School. Upon graduation in 1945, he attended the University of Illinois and enlisted in the Army Air Corps. cadette program and reported for active duty in 1945. After serving two years including a stint in the army of occupation in Germany, he attended
Roosevelt University in Chicago, before starting at the Chicago Board of Trade.Professional success
Stern began his career as a clerk for
Merrill Lynch in December 1947.After a successful run of twenty years in futures and options trading, Stern opened a clearing firm, Lee B. Stern & Company in 1967.
Bringing soccer to Chicago
Stern served as the President and/or Chairman of the Board of the
Chicago Sting of the NASL and MISL from 1974 to 1988.The Sting won two NASL championships (
Soccer Bowl ), in 1981 and 1984.Stern also served as Chairman of the NASL Executive Committee in
1981 and1982 as well as Chairman of the MISL Executive Committee from 1986 - 1988.Stern was a member of the U.S. World Cup Founder's Club which and served as one of the major participants in bringing the World Cup Chicago.
In 2003, Stern was honored by being inducted to the National Soccer Hall of Fame. In addition, he has acted as an unpaid consultant of the Chicago Fire since its inception in the late 90's.
Victim of illegal activities
On
October 22 ,1992 ,Darrell Zimmerman of Chicago, Illinois andAnthony Catalfo of Bayside, Queens, New York, attempted to manipulate the US Treasury bond futures and options market of the Chicago Board of Trade (CBOT). The gist of the scam was to depress prices long enough for Zimmerman and Catalfo to turn a sizable profit. Catalfo reportedly profited approximately $1,500,000 but Zimmerman lost nearly $9,000,000, for which his clearing firm, Lee B. Stern & Company, would be held liable.After an initial suspension of trading and clearing privileges, Lee B. Stern & Company, Lee Stern, son Daniel Stern, and Lester Moucher, the three principals of the Lee B. Stern & Company, the Chicago Board of Trade had the suspension expunged on
October 28 ,1992 .A CBOT arbitration panel found Zimmerman and Catalfo guilty of fraud and conspiracy, fining Zimmerman $1,500,000 and Catalfo $750,000 and ordered them jointly liable to Lee B. Stern & Co. for $8.6 million in damages.
On
July 6 ,1994 , Catalfo was found guilty of six counts of wire fraud by a Federal jury and sentenced to 42 months in prison.Zimmerman fled to
Vancouver , BCCanada and foughtextradition .Redemption
Stern, now president of LBS Limited Partnership, celebrated his 55th anniversary as a Chicago Board of Trade member in November 2004.
Stern has been quoted as saying his motto is: "You can't buy integrity and once you lose it no amount of money can buy it back." [http://www.chicagoclimatex.com/news/articles/archive/2004/newsScroller2005021601161338.html]
The family business
Among Stern's children, son's Jeffrey, Daniel and Kenny, as well as daughter January have all been involved in the futures and options markets in Chicago.
External links
* [http://www.soccerhall.org/builders/Lee_Stern.htm Lee Stern profile on (American) National Soccer Hall of Fame Web site]
* [http://caselaw.lp.findlaw.com/cgi-bin/getcase.pl?court=7th&navby=case&no=942562 UNITED STATES OF AMERICA v. ANTHONY CATALFO at FindLaw]
* [http://www.chicagoclimatex.com/news/articles/archive/2004/newsScroller2005021601161338.html CCX Member, Lee Stern, Looks Back at 55-Years as a Chicago Board of Trade Member] ( [http://216.239.51.104/search?q=cache:UaQu-WgD1R0J:www.chicagoclimatex.com/news/articles/archive/2004/newsScroller2005021601161338.html+%22CCX+Member,+Lee+Stern,+Looks+Back+at+55-Years+as+a+Chicago+Board+of+Trade+Member%22&hl=en&ct=clnk&cd=1&gl=us Republished] on theChicago Climate Exchange Web site from the [http://www.pricegroupetd.com/archives.html John Lothian Newsletter] )
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