Investors continue to reel from the news that OptionSellers.com founder James Cordier, CEO of the beleaguered Tampa based investment firm characterizing itself as a hedge fund, engaged in the high risk practice of trading in “naked” options. Cordier’s company lost hundreds of millions of dollars in a matter of days, as the volatile energy market turned on OptionSellers.com’s positions.
In a video to investors originally posted on YouTube earlier this week, Cordier characterized natural gas market conditions over the past week as a “rogue wave” that he could not navigate. As a result, INTL FCStone Inc., OptionSellers.com clearinghouse, liquidated the company’s accounts. OptionShares called the situation a “catastrophic loss event.” Worse, many of Cordier’s investors now owe more than they lost as the positions were “naked,” meaning there was almost unlimited downside risk when market conditions deteriorated. Trading in “naked” options is a high stakes strategy and it is possible that many of Cordier’s clients were not aware of the scope of the risk.
Our law firm is working with others across the country to investigate OptionSellers.com’s practices and investment strategy to determine whether clients were fully aware of the significant risk to their principal, as well as the very real possibility of owing more than was lost. Of major concern is whether OptionSellers.com, Cordier, or any of the other principals at the firm (Rosemary Veasey, Matthew Donovan, James Cordier, Michael Gross, and Alicia Zedella) are judgement proof (have any funds remaining from which victims may recover).
It may be possible to recover from INTL FCStone, OptionSellers’ clearing broker and the entity that executed Cordier’s trades. One contention is that INTL FCStone knew, or should have known, that Cordier and his former firm Liberty Trading Group were penalized almost $50,000 in 2013 for improper trading by the U.S. Commodity Futures Trading Commission (CFTC). There may have been other red flags that INTL FCStone chose to ignore. As such, our investigation is ongoing.
If you lost money through OptionShares.com, contact us today for a no cost consultation.
As a plaintiff attorney, Tom Young has been at the forefront of some of the Nation's worst disasters. In 2015, he was judicially appointed to represent over 200,000 plaintiffs in an allocation proceeding involving a $1.24 billion settlement with Deepwater Horizon contractor Halliburton and rig owner Transocean. Currently, he's focused on representing numerous communities across the country that have been ravaged by the opioid epidemic and are now seeking damages from drug manufacturers and distributors.