Brokers, Bagmen, & Moles
Brokers, Bagmen, & Moles takes a fresh look at the FBI’s most expensive undercover operation in history. Told through archival audio as well as new and exclusive interviews with the people who were there, this financial thriller features host and Entropy founder Anjay Nagpal investigating whether the Feds’ 1987 attempt at exposing widespread corruption at Chicago’s future exchanges was a huge success... or a massive failure. It all depends who you ask.
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When you picture the 1980s’ Wall Street boys’ club, you might not think of Chicago. But in 1987, its Mercantile Exchange dwarfed the New York Stock Exchange in both dollars and international influence. Member-owned and expanding rapidly, how it worked—or who was working it—was more obscured. That’s when the FBI opened up a high-stakes operation in an attempt to expose corruption on the floor. What ensued was an elaborate undercover investigation resulting in dozens of indictments for traders who were accused of conspiring to defraud farmers, banks, pension funds, and other customers from around the world. The government either had itself a huge success that reformed our financial markets, or it was total flop. After more than 30 years, Brokers, Bagmen, & Moles gets to the truth.
EPISODES
EPISODE 01: THE BIGGEST SMALL TOWN IN THE WORLD
In the 1980s, blue collar kids started making millions at Chicago’s commodities exchanges. This century-old boys' club was one of the best-kept secrets in the world until the FBI showed up and tried to end the party. The FBI investigation put the exchanges on front pages everywhere, but when the Feds packed up, business went back to usual—like they’d never been there. Thirty years later, former-trader-turned-Hollywood exec Anjay Nagpal thinks there's something strange about this case. He taps his Chicago connections and after a few calls, he's already poking holes in the government's long-accepted narrative of the investigation.
EPISODE 02: T-BUN and the G men
To understand this case, you need to meet the colorful cast of characters at its core: Chicago commodities traders. Meet part-time bookie, possible mob associate, and full-time trader Tony “T-Bun” Bonjourno. He’s a blue collar guy whose dad’s friend helped him get a job on the floor. Once there, T-Bun and his friends live a life beyond their wildest fantasies. T-Bun gives us our first glimpse of the FBI agents’ actions on the floor and tells an incredible story that might just be the answer to why this investigation ended prematurely.
EPISODE 03: Knock Knock. Who’s There?
The ‘80s were a time of tremendous growth on the floor, creating opportunities for guys like boxer Ray Pace. Ray went from working part-time on movie sets to trading for one of the largest brokerage groups at the Merc, ABS Partners. Little did he know, by 1987, he was standing next to an undercover agent. In the grand scheme of things, Ray was a small fish, so Anjay questions if his role with the controversial ABS is what put him on the Feds' radar. The agents say he committed felonies; Ray says he was just doing business the way he was taught. All this leads Anjay to a new idea: Was Ray just a scapegoat, a way for the FBI to cover up its own failure?
EPISODE 04: Scapegoats and Fat Cats
Pulitzer prize-winning journalist Bill Crawford broke the news of the undercover investigation in January 1989, when an unnamed source in Washington, D.C. tipped off the Chicago Tribune. The Trib’s initial stories billed the case as a tremendous win for the government, but right away, Crawford questioned if the government had missed its mark—could they perhaps have been gunning for the men in charge of the exchanges? Anjay then speaks with a former trader who worked closely with the longtime Merc boss, Leo Melamed, to learn about the underhanded political dealings that enabled the stunning transformation of this sleepy agricultural exchange—and the systemic corruption that followed.
EPISODE 05: The informant?
Within a week of breaking the story, the press learned that the FBI came to Chicago’s exchanges partly in response to a complaint from a powerful agricultural company called Archer Daniels Midland. While that remains the popular narrative, Anjay’s sources convince him that the government has managed for decades to keep something about this case secret—but what, exactly? In this episode, we learn about the government’s attempts to get T-Bun and Ray Pace to cooperate with the investigation, and Anjay gets in touch with the guy who did.
EPISODE 06: TRADERS AND TRAITORS
Someone was bound to talk eventually, and it ended up being one of the white-collar kids at the Chicago Board of Trade. Anjay speaks with trader Dave Skrodzki about his decision to cooperate, what it meant for his livelihood, and why Skrodzki thinks the government found exactly what it was looking for in Chicago. While Skrodzki and a few other cooperators helped the FBI solidify a few cases, the Feds ultimately didn't produce nearly as many indictments as they'd promised. If their plan was to work their way up the ladder, it wasn’t working. So where can they look to next?
EPISODE 07: Big Fish
The man, the myth, the target of this investigation? That’s Lewis Borsellino… at least, according to Lewis Borsellino. The son of a mafia hitman, Borsellino made a name for himself as one of the most successful traders in the S&P 500 futures pit. That got the Feds interested in him, or so the story goes. Borsellino tells Anjay he suspects there's more to it than that, and Anjay decides there is only one way to get answers: speaking with the FBI agents themselves.
EPISODE 08: just be yourself
After nearly eight months of off-the-record conversations, two FBI agents agree to speak with Anjay on the record. Randy Janett and Mike Bassett tell Anjay their side of the story. They're open about why this investigation ended when it did, but when it comes to what inspired the FBI to send agents to the floor in the first place, will they stick with the public narrative, or will they reveal some cracks in it?
EPISODE 09: IT WAS ALL CHAOS
Defense attorneys come out swinging, in an attempt to whip up a furor over the dozens of charges against Merc traders. But they have a tough time getting jurors to understand how the buying and selling of future contracts work—not to mention keeping them awake—and the trials descend into chaos. In the end, how many traders were found guilty? And how do the agents who worked the case view its legacy now? Anjay has the surprising answers, and some new questions.
EPISODE 10: How to Buy An Industry
As the trials wrapped up, Congress held a series of hearings that questioned how these markets should be regulated. In echoes of those trials, Congressmen displayed varying levels of comprehension of how the Merc & CBOT worked, and it turns out that those who did understand might be a little too familiar with the heads of those exchanges. As the inquiry winds down, clear winners and losers emerge. Meanwhile, Anjay has a phone call that sets us up for brand-new conclusions about the origins of the investigation.
EPISODE 11: A Humble Accountant
More stories of mob ties among traders come to the surface, so Anjay decides to call one more agent—the one with a background in organized crime, and who seems most willing to speak with him: Dietrich Volk. Anjay arrives in a remote part of Colorado to interview the former agent, and at long last, we learn the truth of this investigation. By the end of their conversation, Anjay thinks he might be able to prove what the agents never could.
EPISODE 12: THE DURKIN DOCUMENT
Trying to find more concrete evidence that the FBI was actually on the floor to investigate the ties between organized crime and Chicago’s exchanges, Anjay searches through thousands of pages of court transcripts. What he finds isn’t quite what he was looking for—instead, he discovers a legal brief that leads him down a completely unforeseen and even more shocking path. What happened to this smoking gun, and why was nothing ever done about these disturbing allegations?
SHOW TEAM
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Anjay Nagpal
HOST, EXEC. PRODUCER
Anjay is Entropy's founder and CEO. A Chicago native who once himself traded on the floor of the Merc and heard about this investigation, years later he leads us to new answers as host of Brokers, Bagmen, & Moles.
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Danielle Elliot
SHOWRUNNER, SNR. PRODUCER
Danielle is a writer, director, and producer of investigative film & audio documentaries. She most recently story edited the podcasts Admissible: Shreds of Evidence (iHeart Radio) and Death By Unknown Event (Audible).
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Jenn Swann
PRODUCER
Jenn graduated from School of the Art Institute of Chicago and got her start at Chicago Magazine and Time Out Chicago. Now based in Southern California, her reporting has appeared in the L.A. Times, The Cut, VICE, and Rolling Stone, among others.
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