Chicago Options Associates, What’s the story? Options

[Peter Damian]

In 1994 Wales left the university of Alabama and took a job at Chicago Options Associates, as Research Director. He left in 1996. I am still puzzled how he made enough money so as not to work again, having worked there less than two years, in a research capacity (rather than a trader).

What happened to Chicago Options Associates? The CEO was Michael Davis, who in that period was the subject of a lawsuit referenced here

http://www.state.il.us/court/opinions/appe...tml/1041110.htm
http://www.state.il.us/court/opinions/supr.../may/102578.pdf

I haven’t time to follow the details of the case yet, but it seems Davis was successfully sued for a large sum of money (then), nearly $1m, and tried by various means to avoid payment. Does anyone know the full story? I see Greg has followed this one in the past.

[Peter Damian]

I have Dowling’s address (still lives in Chicago) so he is potential candidate for interview. But there are many puzzles

The $1,580,506.86 that Davis transferred to his account in Florida was not his own money, but a loan from North Shore Bank using assets held by “4637 Manor LLC� to purchase his residence in Florida. I am speculating that this is probably 4637 N Manor ave, chicago, IL 60625, i.e. Davis made his own house in Chicago into a company. However, that amount of money for a house in Chicago in 2003 seems implausible. What actually was Davis’ personal balance sheet in 2003?

What exactly was the agreement between Dowling and COA in 1994? Why did it take so long to get a judgment?

How much money did Wales make from his contract with COA?

When and how did COA wind up?

What was the exact nature of COA business? On the assumption that they were speculating, rather than running a balanced book, whose money were they speculating?

[Kelly Martin]

I am speculating that this is probably 4637 N Manor ave, chicago, IL 60625, i.e. Davis made his own house in Chicago into a company. However, that amount of money for a house in Chicago in 2003 seems implausible.

Not the least bit implausible, and in fact 4637 N Manor Ave. is a 5 bedroom 5 bathroom 7000 foot spread in Ravenswood that has recently been listed at $1,650,000. See here.