Lee Stern
Encyclopedia
Lee B. Stern is the longest tenured trader at the Chicago 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 the North American Soccer League
's Chicago Sting
, and is currently a director and minority owner of the Chicago White Sox
.
in Chicago, before starting at the Chicago Board of Trade. Lee married Norma Retchin in 1951. They have 4 children and 11 grandchildren.
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.
of the NASL
and MISL in 1974 and led the team until it folded in 1988. In their 14 year history, the Sting won two NASL championships (Soccer Bowl
), in 1981 and 1984.
Stern also served as Chairman of the NASL Executive Committee in 1981 and 1982 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.
Stern has also been long-associated with the Chicago White Sox
, where he is a minority owner and serves on the team's board of directors.
. 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
, BC Canada
and fought extradition
.
member on November 8, 2009.
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."
Chicago Board of Trade
The Chicago Board of Trade , established in 1848, is the world's oldest futures and options exchange. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and eTrading. Volumes at the exchange in 2003 were a record breaking 454 million...
. 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 the North American Soccer League
North American Soccer League
North American Soccer League was a professional soccer league with teams in the United States and Canada that operated from 1968 to 1984.-History:...
's Chicago Sting
Chicago Sting
The Chicago Sting was an American professional soccer team based in Chicago, Illinois. The Sting played in the North American Soccer League from 1975 to 1984 and in the Major Indoor Soccer League from in the 1982-83 season and again from 1984 to 1988...
, and is currently a director and minority owner of the Chicago White Sox
Chicago White Sox
The Chicago White Sox are a Major League Baseball team located in Chicago, Illinois.The White Sox play in the American League's Central Division. Since , the White Sox have played in U.S. Cellular Field, which was originally called New Comiskey Park and nicknamed The Cell by local fans...
.
Early life
Stern attended Senn High School. Upon graduation in 1945, he attended the University of Illinois and enlisted in the Army Air Corps. cadet 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 UniversityRoosevelt University
Roosevelt University is a coeducational, private university with campuses in Chicago, Illinois and Schaumburg, Illinois. Founded in 1945, the university is named in honor of both former President Franklin Delano Roosevelt and First Lady Eleanor Roosevelt. The university's curriculum is based on...
in Chicago, before starting at the Chicago Board of Trade. Lee married Norma Retchin in 1951. They have 4 children and 11 grandchildren.
Professional success
Stern began his career as a clerk for Merrill LynchMerrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
in December 1947.
After a successful run of twenty years in futures and options trading, Stern opened a clearing firm
Clearing (finance)
In banking and finance, clearing denotes all activities from the time a commitment is made for a transaction until it is settled. Clearing is necessary because the speed of trades is much faster than the cycle time for completing the underlying transaction....
, Lee B. Stern & Company in 1967.
Life-long love of Chicago sports
Stern founded the Chicago StingChicago Sting
The Chicago Sting was an American professional soccer team based in Chicago, Illinois. The Sting played in the North American Soccer League from 1975 to 1984 and in the Major Indoor Soccer League from in the 1982-83 season and again from 1984 to 1988...
of the NASL
North American Soccer League
North American Soccer League was a professional soccer league with teams in the United States and Canada that operated from 1968 to 1984.-History:...
and MISL in 1974 and led the team until it folded in 1988. In their 14 year history, the Sting won two NASL championships (Soccer Bowl
Soccer Bowl
The Soccer Bowl was the championship game of the North American Soccer League from 1975 to 1983. The event was created by NASL Commissioner Phil Woosnam who was trying to build a neutral-site championship event in the mold of the NFL's Super Bowl....
), in 1981 and 1984.
Stern also served as Chairman of the NASL Executive Committee in 1981 and 1982 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.
Stern has also been long-associated with the Chicago White Sox
Chicago White Sox
The Chicago White Sox are a Major League Baseball team located in Chicago, Illinois.The White Sox play in the American League's Central Division. Since , the White Sox have played in U.S. Cellular Field, which was originally called New Comiskey Park and nicknamed The Cell by local fans...
, where he is a minority owner and serves on the team's board of directors.
Victim of illegal activities
On October 22, 1992, Darrell Zimmerman of Chicago, Illinois and Anthony Catalfo of Bayside, Queens, New York, attempted to manipulate the US Treasury bond futures and options market of the Chicago Board of Trade (CBOT)Chicago Board of Trade
The Chicago Board of Trade , established in 1848, is the world's oldest futures and options exchange. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and eTrading. Volumes at the exchange in 2003 were a record breaking 454 million...
. 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
Vancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
, BC Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
and fought extradition
Extradition
Extradition is the official process whereby one nation or state surrenders a suspected or convicted criminal to another nation or state. Between nation states, extradition is regulated by treaties...
.
Redemption
Stern, now president of LBS Limited Partnership, celebrated his 60th anniversary as a Chicago Board of TradeChicago Board of Trade
The Chicago Board of Trade , established in 1848, is the world's oldest futures and options exchange. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and eTrading. Volumes at the exchange in 2003 were a record breaking 454 million...
member on November 8, 2009.
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."
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
- Lee Stern profile on (American) National Soccer Hall of Fame Web site
- UNITED STATES OF AMERICA v. ANTHONY CATALFO at FindLaw
- CCX Member, Lee Stern, Looks Back at 55-Years as a Chicago Board of Trade Member (Republished on the Chicago Climate ExchangeChicago Climate ExchangeThe now defunct Chicago Climate Exchange was North America’s only voluntary, legally binding greenhouse gas reduction and trading system for emission sources and offset projects in North America and Brazil....
Web site from the John Lothian Newsletter)