The curious case of Larry Fondren and DelphX
After a decade with DelphX Capital Markets, the company’s founder and executive chairman was unceremoniously fired “for cause” earlier this month. He still isn’t sure why.
On February 11, DelphX Capital Markets issued an announcement that its founder, Larry Fondren, had resigned from the company’s board of directors and had been terminated for cause from all of DelphX’s subsidiaries, including DelphX Services Corp. The news may have come as a shock to those who knew Fondren, a 50-year veteran of the insurance and fixed-income industries, but perhaps no one was more befuddled than Fondren, himself.
“It has recently been discovered by the Board that, contrary to fiduciary duties to the Company, Mr. Fondren has been using the Company’s property to advance his own personal interests,” the announcement read.
When I read that [announcement], I thought, ‘What the expletive is this?’
Larry Fondren
In an interview with WatersTechnology, Fondren denies that claim. “When I read that [announcement], I thought, ‘What the expletive is this?’ That is not what the [original resignation] documentation shows. This is certainly not what my understanding was. And this suggests that somehow I’m doing things that are untoward. That’s wrong,” he says.
He offers a timeline spanning almost two months that partially explains, in his view, how he may have ended up in this position. Fondren originally became the company’s executive chairman in April 2019, following the board’s decision to replace him as CEO with two co-CEOs. At a DelphX board meeting on December 31, Fondren says he offered his resignation, unprompted, to avoid the suggestion there was any conflict of interest with his other venture, Entre Global Services, the aim of which is to help institutional investors—primarily life insurance companies and pension funds—maximize their yields.
For contrast, DelphX Capital Markets is a platform focused on risk mitigation and providing an alternative securities-based solution for credit default swaps, through its “Delph” instrument. DelphX Services Corp., founded in 2006, is a Securities and Exchange Commission (SEC)-registered special-purpose broker-dealer and Finra member firm dedicated to operating the DelphX Alternative Trading System (ATS). Entre Global Services, founded in 2000 by Fondren, is also the founding corporate parent of DelphX, LLC, the original DelphX entity, he says. DelphX is listed on the TSX Venture Exchange in Canada under the ticker DELX.
When Fondren informed the board of his resignation, he says current DelphX CEO, Patrick Wood, who was appointed to the role in June 2020, asked Fondren if he would make his resignation effective on March 1. Fondren says he agreed. (Wood has not returned multiple requests for comment.)
Fondren says all seemed well until he received a letter from the board on February 11, confirming the board’s acceptance of his resignation, effective immediately, and termination of his position on the board and his position as the sole registered principal of the broker-dealer. He says the letter made no mention of wrongdoing by Fondren, but he was unable to share it with WatersTechnology, as it’s marked confidential.
“This is nuts. My reputation has been defamed,” Fondren says. “I mean, if there was documentation somehow that gave rise to this public announcement, that’d be one thing, but there’ isn’t—certainly not to my knowledge. I’ve never been presented with anything that supports what they said.”
It’s unclear whether the accusations levied at Fondren are financial in nature or related to intellectual property, but Fondren has retained counsel specializing in IP matters. No formal lawsuits have been filed by Fondren or the company against each other as of yet, he says.
“As far as I’m concerned, I continue to invent. That’s what I do,” Fondren says.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
This Week: ION/LuxSE, BNY Mellon, Nasdaq, and more
A summary of the latest financial technology news.
Nasdaq to market new options strike listing tech to other exchanges
The exchange operator is experimenting with emerging technologies to determine which options strike prices belong in a crowded market, with hopes to sell the tech to its peers.
Former Goldman analyst aims to blend GenAI and synthetic data with start-up
Synthera.ai is taking a novel approach to calculating risk. While promising, industry observers are skeptical.
Waters Wavelength Podcast: Bloomberg’s Tony McManus
Tony McManus, global head of enterprise data division at Bloomberg, joins the podcast to talk about the importance of data in the context of AI and GenAI.
Devil’s Bargain: Closed architecture systems will derail AI ambitions
Rob Flatley explains why closed-off systems will fall flat when it comes to AI adoption.
This Week: First Trust/Bloomberg/New Constructs, Cboe/Metaurus, LTX/MultiLynq, and more
A summary of the latest financial technology news.
Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
Frank Tarsillo, CTO at S&P Global Market Intelligence, joins the podcast to discuss the firm’s approach to AI, the importance of data, and what might be in store for datacenters in the coming years.
BMO’s cloud migration strategy eases AI adoption
The Canadian bank is embracing a more digital future as its cloud strategy makes gains and it looks to both traditional machine learning and generative AI for further augmentation.
Most read
- Waters Wavelength Podcast: Bloomberg’s Tony McManus
- IMD & IRD Awards 2024: All the winners
- Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters