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The Ledger / Peter Kellogg

Peter Kellogg

$4.7BFinancialsForbes #767US

◼ Origin

Son of James Crane Kellogg III, a senior partner and NYSE chairman who joined Spear, Leeds & Kellogg in 1941. Peter joined the family firm in 1967 and built it into the dominant NYSE specialist operation before selling to Goldman Sachs in 2000 for $6.5 billion; he then deployed proceeds into IAT Insurance Group and other private holdings.

◼ Self-Made Verdict — PARTIAL

Kellogg joined his father's firm where his father James Kellogg III was a senior partner and NYSE chairman, and substantially expanded it. The founding advantage is his father's; the scale achieved is largely his own.

◼ Documented marks

01

Former controlling partner, Spear Leeds & Kellogg — sold to Goldman Sachs in 2000 for approximately $6.5 billion; now controls IAT Reinsurance Co. Ltd. (Bermuda-based reinsurer)

02

SLK Specialists LLC, which Kellogg controlled, systematically front-ran public customer orders from 1999–2003, routing fills through the firm's proprietary account at the expense of customers — causing approximately $28.7 million in harm

03

SEC settled with SLK Specialists and five other NYSE specialist firms in March 2004 in an industry-wide action; SLK paid $28.7 million in disgorgement as part of a $240 million combined settlement

04

Maintains a very low public profile post-SLK; no public corporate board seats or regular media appearances

05

Holds a large passive stake portfolio reported as top-10 holder in multiple S&P 500 companies

06

Sold Spear, Leeds & Kellogg to Goldman Sachs for $6.5 billion in September 2000; Kellogg received the largest individual share of proceeds as controlling partner

07

Controlling shareholder and former CEO of IAT Insurance Group, which grew from $11.5 million in equity in 1991 to one of the largest privately held U.S. insurers by assets

08

IAT Insurance Group structured through entities that utilize a U.S. tax exemption for small insurers collecting under $350,000 in annual premiums from federal tax

09

Spear, Leeds & Kellogg was the first NYSE specialist firm to control over 10% of NYSE-listed stocks

10

Former chairman of Scully Royalty Ltd., indicating timber and natural resource investment exposure

No inheritance, or primary accounts documented for this billionaire yet.

◼ List of charges

Total sentence

00 years

That is

0.00.0 life sentences

(using 78 years as one life)

At $1 million per day

Peter Kellogg's fortune would last 13 years

0.2 lifetimes of luxury — before running out.

These are moral charges, not legal ones. The actual legal system has not — and will not — bring them.