The National Futures Association (NFA) announced Wednesday evening that Ernest Jaffarian and Doug Bry won the one contested election this year for representation of its Commodity Pool Operator/Commodity Trading Advisor category over commodity customer coalition co-founders James Koutoulas and John Roe.
The election was controversial for a number of reasons. Koutoulas and Roe had won re-election last year to what was supposed to be a two-year term but changes in the NFA Board structure forced them back on the ballot vs. fellow board members Jaffarian and Bry.
Koutoulas has been critical of the way the NFA board operates and the salary of senior staff. Last year he accused the board of impropriety by breaking its own rules for nominating public representatives and falsifying documents to cover it up.
This year’s election got testy with both sets of contestants penning letters to the NFA membership stating their cases.
Koutoulas wrote: “In a microcosm of what’s wrong with this country, NFA management has restructured the Board and set up this election to eliminate 50% of the representatives that were actually elected by you. This will result in even less oversight of a management team that has seen four major frauds happen on their watch recently.”
Jaffarian noted, “Mr. Koutoulas and Mr. Roe have proven to be polarizing and divisive figures on the NFA Board, and should have resigned to pursue their reform efforts from the outside when they publicly revealed their whistleblower suit and lost the trust and confidence of the other Board members.”
All four of the current and former board members initially ran for the NFA Board out of frustration over what they saw as an ineffective response to the MF Global debacle.