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Commodity Futures Trading Commission 

CEA CASES 

NAME: MYLES J. KERRIGAN, THOMPSON B. SANDERS, AND O'CONNOR GRAIN CO. 

CITATION: 28 Agric. Dec. 1239 

DOCKET NUMBER: 162 

DATE: OCTOBER 23, 1969 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 12,755) 

In re MYLES J. KERRIGAN, THOMPSON B. SANDERS, and O'CONNOR GRAIN CO. CEA Docket 

No. 162. Decided October 23, 1969. 

Trading in excess of limits -- Denial of trading privileges -- Suspension of 

registration -- Stipulation

The activities of respondent Kerrigan in trading in corn futures in excess of 

the trading limits, resulting in false entries being made on the trading card of 

respondent Sanders and in the records of the partnership respondent for the 

purpose of concealing such excess trading, are violations of the act for which 

suspension of registration and denial of trading privileges on all the contract 

markets are ordered against respondent Kerrigan for 30 days and against 

respondent Sanders for 10 days. Suspension of registration and denial of 

trading privileges are also ordered against the partnership respondent for a 

period of five days, but these sanctions against the partnership shall be held 

in abeyance. 

Earl L. Saunders for Commodity Exchange Authority. 

John J. Enright, of Arvey, Hodes & Mantynband, Chicago, Ill., and Mitchell 

Edelson, Sr., of Chicago, Ill., for respondents. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is an administrative proceeding under the Commodity Exchange Act (7 

U.S.C. 1 et seq.), instituted by a complaint and notice of hearing on June 19, 

1969, by the Assistant Secretary of Agriculture. Respondent Myles J. Kerrigan 

is charged with violating sections 4a and 4i of the act (7 U.S.C. 6a, 6i), 

sections 15.01, 15.02, 15.03, 18.00, and 18.05 of the regulations issued 

thereunder (17 CFR 15.01, 15.02, 15.03, 18.00, 18.05), and the order of the 

Commodity Exchange Commission establishing limits on positions and trading in 

corn futures (17 CFR 150.1), 

and all of the respondents are charged with violating sections 4, 4b, 4c, and 4g 

of the act (7 U.S.C. 6, 6b, 6c, 6g), and section 1.35 of the regulations (17 CFR 

1.35). 

An oral hearing was held in Chicago, Illinois, on October 15 and 16, 1969, 

before Jack W. Bain, Hearing Examiner, Office of Hearing Examiners, United 

States Department of Agriculture. On October 17, 1969, the respondents filed a 

stipulation in which they admit the jurisdictional facts alleged in paragraphs I 

through V of the complaint, admit, for the purposes of this proceeding, most of 

the remaining factual allegations, waive the report of the Hearing Examiner, and 

consent to the entry of the order contained herein. 
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FINDINGS OF FACT

1. Respondent Myles J. Kerrigan, an individual whose address is Room 1437, 

141 West Jackson Boulevard, Chicago, Illinois 60604, is now, and was at all 

times material herein, a member of the Board of Trade of the City of Chicago 

(hereinafter called the Chicago Board of Trade) and a general partner in 

respondent O'Connor Grain Co. Respondent Kerrigan is now a registered floor 

broker under the Commodity Exchange Act (hereinafter called the act). 

2. Respondent Thompson B. Sanders, an individual whose address is Room 1437, 

141 West Jackson Boulevard, Chicago, Illinois 60604, is now, and was at all 

times material herein, a registered floor broker under the act, a member of the 

Chicago Board of Trade, and an employee of respondent O'Connor Grain Co. 

3. Respondent O'Connor Grain Co. is a partnership whose address is Room 1437, 

141 West Jackson Boulevard, Chicago, Illinois 60604. The said partnership is 

now, and was at all times material herein, a registered futures commission 

merchant under the act and a clearing member of the Chicago Board of Trade. 

4. The Chicago Board of Trade is now, and was at all times material herein, a 

duly designated contract market under the act. 

5. The transactions referred to herein were in corn futures on or subject to 

the rules of the Chicago Board of Trade and were capable of being used for 

hedging transactions in interstate commerce in corn or the products or byproducts thereof, or determining the price basis of transactions in interstate 

commerce 

in corn, or delivering corn sold, shipped, or received in interstate commerce. 

All such transactions made for the account of respondent Myles J. Kerrigan were 

speculative and were carried by respondent O'Connor Grain Co. 

6. (a) On June 29, 1966, respondent Myles J. Kerrigan, acting for his own 

account, purchased 1,920,000 bushels and sold 1,970,000 bushels of corn futures, 

and reported such purchases and sales to the Commodity Exchange Authority. In 

addition, respondent Kerrigan, on the same date, purchased 1,000,000 bushels of 

March 1967 corn futures from another floor trader, John L. Georgas, not a 

respondent herein, at $ 1.40 per bushel, and sold 1,000,000 bushels of May 1967 

corn futures to the said John L. Georgas at $ 1.42 per bushel. Respondent 

Kerrigan did not enter such purchase or sale on his trading card, or report them 

to the Commodity Exchange Authority. Respondent Kerrigan requested respondent 

Thompson B. Sanders to record such purchase and sale on his trading card as 

though they had been made by respondent Sanders. In compliance with such 

request, respondent Sanders entered on one of his trading cards a purchase of 

1,000,000 bushels of March 1967 corn futures at $ 1.40 per bushel and a sale of 

the same quantity of May 1967 corn futures at $ 1.42 per bushel, and turned in 

such card to respondent O'Connor Grain Co. as a result of which the records of 

respondent O'Connor Grain Co. showed that such purchase and sale were made for 

the account of, and that the resulting positions were held by, respondent 

Sanders. In truth and in fact and as the respondents knew, the entire purchase 

of the 1,000,000 bushels of March 1967 corn futures and the entire sale of the 

1,000,000 bushels of May 1967 corn futures were made by respondent Kerrigan for 

his own use and benefit and were owned and controlled by him. The false entries 

on the trading card of respondent Sanders and in the records of respondent 

O'Connor Grain Co. were intended and made for the purpose of concealing from the 

Commodity Exchange Authority the fact that on June 29, 1966, respondent Kerrigan 

had made sales and had made purchases in corn futures, in amounts in excess of 

the maximum limit of 2,000,000 bushels established by the Commodity Exchange 

Commission (17 CFR 150.1). 

(b) On June 30, July 6 and July 8, 1966, respondent Kerrigan entered on his 

trading cards sales of 500,000 bushels and 200,000 bushels and 300,000 bushels, 

respectively, of May 1967 corn futures to respondent Sanders, and purchase of 

the same 
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quantities of March 1967 corn futures from respondent Sanders. Respondent 

Sanders entered the opposite sides of these transactions on his trading cards 

and entries were made by respondent O'Connor Grain Co. in its records showing 

such transactions. In truth and in fact and as the respondents knew, the above 

transactions were not bona fide sales and purchases but merely transfers from 

respondent Sanders' account to respondent Kerrigan's account of the sale of 

1,000,000 bushels of May 1967 corn futures and the purchase of 1,000,000 bushels 

of March 1967 corn futures that had been made by respondent Kerrigan for his own 

use and benefit but placed in respondent Sanders' account, as described above. 

7. On June 30, 1966, respondent Myles J. Kerrigan, acting for his own 

account, made transactions in corn futures in an amount in excess of the maximum 

limit of 2,000,000 bushels established by the Commodity Exchange Commission (17 

CFR 150.1). In an effort to conceal such fact from the Commodity Exchange 

Authority, respondent Kerrigan: 

(a) Included in his report to the Commodity Exchange Authority for June 30, 

1966, purchases of only 1,940,000 bushels and sales of only 1,980,000 bushels, 

but did not include therein additional purchases of 50,000 bushels and 

additional sales of 50,000 bushels made by respondent Kerrigan in the December 

1966 corn future at $ 1.38 3/4 on June 30, 1966; and 

(b) Deleted the entries relating to such purchases and sales in the December 

1966 corn future from the fraction sheet maintained by respondent O'Connor Grain 

Co., for respondent Kerrigan's account. 

8. On July 7, 1966, respondent Myles J. Kerrigan, acting for his own account, 

made transactions in corn futures in an amount in excess of the maximum limit of 

2,000,000 bushels established by the Commodity Exchange Commission (17 CFR 

150.1). In an effort to conceal such fact from the Commodity Exchange 

Authority, respondent Kerrigan: 

(a) Included in his report to the Commodity Exchange Authority for July 7, 

1966, purchases of only 1,925,000 bushels and sales of only 1,945,000 bushels, 

but did not include therein additional purchases of 50,000 bushels and 

additional sales of 50,000 bushels made by respondent Kerrigan in the September 

1966 corn future on July 7, 1966. Nor did respondent Kerrigan include 

in such report additional purchases of 100,000 bushels and additional sales of 

100,000 bushels made by him in the December 1966 corn future at $ 1.37 3/4 per 

bushel on July 7, 1966: 

(b) Changed the fraction sheet maintained by respondent O'Connor Grain Co. 

for respondent Kerrigan's account for July 7, 1966, by decreasing the entry 

showing the total purchases in the September 1966 corn future by 50,000 bushels 

and decreasing the entry showing the total sales in such future by a like 

amount; and 

(c) Deleted the entry relating to 100,000 bushels purchased at $ 1.37 3/4, in 

the December 1966 corn future and the entry relating to sales of the same 

quantity of the same future at the same price from the fraction sheet maintained 

by respondent O'Connor Grain Company for respondent Kerrigan's account for July 

7, 1966. 

9. On July 14, 1966, respondent Myles J. Kerrigan, acting for his own 

account, made transactions in corn futures in an amount in excess of the maximum 

limit of 2,000,000 bushels established by the Commodity Exchange Commission (17 

CFR 150.1). In an effort to conceal such fact from the Commodity Exchange 

Authority, respondent Kerrigan: 

(a) Included in his report to the Commodity Exchange Authority for July 14, 

1966, purchases of only 1,880,000 bushels and sales of only 1,770,000 bushels, 
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but did not include therein additional purchases of 100,000 bushels and 

additional sales of the same quantity made by respondent Kerrigan in the 

December 1966 corn future on July 14, 1966, at $ 1.41 per bushel. Nor did 

respondent Kerrigan include in such report additional purchases of 100,000 

bushels and additional sales of the same quantity made by him in the December 

1966 corn future at $ 1.41 1/2 per bushel on July 14, 1966; and 

(b) Caused the fraction sheet maintained by respondent O'Connor Grain Company 

for respondent Kerrigan's account for July 14, 1966, to fail to show any entries 

relating to such transactions in the December 1966 corn future. 

10. On July 18, 1966, respondent Myles J. Kerrigan, acting for his own 

account, made transactions in corn futures in an amount in excess of the maximum 

limit of 2,000,000 bushels established by the Commodity Exchange Commission (17 

CFR 150.1). In an 

effort to conceal such fact from the Commodity Exchange Authority, respondent 

Kerrigan: 

(a) Included in his report to the Commodity Exchange Authority for July 18, 

1966, purchases of only 1,570,000 bushels and sales of only 1,970,000 bushels, 

but did not include therein additional purchases of 625,000 bushels and 

additional sales of 625,000 bushels made by respondent Kerrigan in the December 

1966 corn future on July 18, 1966; 

(b) Prepared trading cards purporting to show that such purchases and sales 

made in the December 1966 corn future were for the account of another partner in 

respondent O'Connor Grain Co., James R. Powers, not a respondent herein, and 

turned in such cards to respondent O'Connor Grain Co.; and 

(c) Caused the fraction sheet maintained by respondent O'Connor Grain Co. for 

the account of James R. Powers for July 18, 1966 to purport to show that such 

transactions in the December 1966 corn future had been made for the account of 

James R. Powers, and caused the fraction sheet maintained by respondent O'Connor 

Grain Co. for respondent Kerrigan's account for July 18, 1966, to fail to show 

any entries relating to such transactions. 

CONCLUSIONS

By reason of the facts set forth in the Findings of Fact, it is concluded 

that, as charged in the complaint: (1) respondent Myles J. Kerrigan violated 

sections 4a and 4i of the Commodity Exchange Act, sections 15.01, 15.02, 15.03, 

18.00, and 18.05 of the regulations issued thereunder, and the order of the 

Commodity Exchange Commission establishing limits on positions and trading in 

corn futures (17 CFR 150.1), and (2) all of the respondents violated sections 4, 

4b, 4c, and 4g of the act and section 1.35 of the regulations. 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the stipulation and waiver 

submitted by the respondents. The administrative officials believe that the 

proposed order would be adequate and that the prompt entry of such an order 

would constitute a satisfactory disposition of the case. The administrative 

officials point out that, except for respondent Kerrigan, it appears that none 

of the individual members of respondent partnership 

O'Connor Grain Co., had knowledge of the violations in question and, under the 

circumstances, the administrative officials do not believe that the imposition 

of an effective sanction against the respondent partnership is needed to 

effectuate the purposes of the act. The complainant recommends that the 

stipulation and waiver be accepted and the proposed order be issued. It is 

concluded that the complainant's recommendation should be adopted. 

ORDER
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Effective on the thirtieth day after the date of issuance of this order, (1) 

the registration of respondent Myles J. Kerrigan as a floor broker is suspended 

for a period of thirty (30) days, and all contract markets shall refuse all 

trading privileges to respondent Myles J. Kerrigan during this period, such 

refusal to apply to all trading done and positions held by him directly or 

indirectly; (2) the registration of respondent Thompson B. Sanders as a floor 

broker is suspended for a period of ten (10) days, and all contract markets 

shall refuse all trading privileges to respondent Thompson B. Sanders during 

this period, such refusal to apply to all trading done and positions held by him 

directly or indirectly; (3) the registration of respondent O'Connor Grain Co. as 

a futures commission merchant is suspended for a period of five (5) days, and 

all contract markets shall refuse all trading privileges to respondent O'Connor 

Grain Co. during this period, Provided, However, that the aforesaid suspension 

of the registration of respondent O'Connor Grain Co. and refusal of trading 

privileges to it shall not become effective unless, after complaint and hearing 

in accordance with established procedure, respondent O'Connor Grain Co., should 

be found to have violated the Commodity Exchange Act within one year from the 

date of entry of this order, in which event the Secretary of Agriculture may, 

without further notice to respondent O'Connor Grain Co., issue a supplemental 

order making effective forthwith the aforesaid suspension of its registration 

and refusal of trading privileges to it. 

A copy of this Decision and Order shall be served on each of the parties and 

on each contract market. 

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