Vincent Kosuga

Vincent W. Kosuga (January 17, 1915 – January 19, 2001) was an American onion farmer and commodity trader best known for manipulating the onion futures market. Public outcry over his practices led to the passing of the Onion Futures Act, which banned the trading of futures contracts on onions.

Kosuga carried a .38 caliber pistol and a billy club with him at all times. He drove stock cars in his spare time and was a licensed pilot.

He soon began splitting his time between New York and Chicago, where he traded on the Chicago Mercantile Exchange several days a week. In Chicago, he was a very successful trader. He lavished expensive gifts upon his brokers, buying them each a new Buick one year. One of his brokers eventually rose to the position of Chairman of the exchange.

Cornering the onion market With his partner Sam Siegel, a fellow onion trader and owner of a local produce company, Kosuga embarked upon a scheme to corner the onion futures market. In the fall of 1955, Siegel and Kosuga bought enough onions and onion futures so that they controlled 98 percent of the available onions in Chicago. They soon changed course and convinced onion growers to begin purchasing their inventory by threatening to flood the market with onions if they did not.

As the growers began buying onions, Siegel and Kosuga purchased short positions on a large amount of onion contracts.

Siegel and Kosuga made millions of dollars on the transaction due to their short position on onion futures. Many of the farmers had to pay to dispose of the large amounts of onions that they had purchased and grown. The abrupt change in prices gained the attention of the Commodity Exchange Authority.

Later life After the futures market was reformed, Kosuga returned to New York full-time and focused on his local business interests and philanthropy. Kosuga opened a restaurant next to his farm called The Jolly Onion Inn, where he served as a chef. The Jolly Onion Inn (later known as Ye Jolly Onion Inn) became one of the most popular restaurants in Orange County. The Pine Island Chamber of Commerce did not mention Kosuga's manipulation of the onion market in their announcement of his award, nor the other onion farmers his misadventures put out of business. The Pine Island Chamber of Commerce's mission is to increase profits for businesses in the community, as it is not a charity nor a philanthropic organization. After Kosuga died, his widow, Polly Kosuga (1915–2009), continued his philanthropy.