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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROBERT E. O'GRADY, CARL D. LEAVEN, LEONARD B. FELDMAN, DONALD T. BARCLAY, 

TIME TRADING CO., AND RITTENHOUSE INVESTMENTS, INC. 

CITATION: 30 Agric. Dec. 1635 

DOCKET NUMBER: 184 

DATE: NOVEMBER 18, 1971 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 14,267) 

In re ROBERT E. O'GRADY, CARL D. LEAVEN, LEONARD B. FELDMAN, DONALD T. BARCLAY, 

TIME TRADING CO., and RITTENHOUSE INVESTMENTS, INC. CEA Docket No. 184. 

Decided November 18, 1971. 

Wash sales -- Order as to 4 respondents -- Cease and desist -- Suspension of 

registrations for 10 days -- Consent 

Respondents O'Grady, Leaven, Feldman and Time Trading Co. are ordered to 

cease and desist from violations of the act involving wash sales and 

transactions that are not open and competitive. Respondents O'Grady, Leaven and 

Feldman are suspended as registrants under the act for a period of 10 days and 

are denied all trading privileges on all the contract markets for a like period. 

John Broadley and Earl L. Saunders for Commodity Exchange Authority. 

Ira Marcus, Chicago, Ill., for respondents O'Grady, Leaven, Feldman, and Time 

Trading Co. 

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 issued on 

September 10, 1971. The respondents are charged with violating section 4c of 

the Act (7 U.S.C. 6c) and section 1.38 of the reguations thereunder (17 CFR 

1.38). 

No hearing has been held with respect to any of the respondents. On November 

10, 1971, respondents Robert E. O'Grady, Carl D. Leaven, Leonard B. Feldman and 

Time Trading Co. submitted for filing in the record, under section 0.4(b) of the 

Rules of Practice (17 CFR 0.4(b)), a stipulation in which they (1) admit the 

facts hereinafter set forth in paragraphs one and two of the Findings of Fact, 

(2) admit, for the purposes of this proceeding and for such purposes only, the 

facts hereinafter set forth in paragraph three of the Findings of Fact, (3) 

waive oral hearing and the report of the Hearing Examiner, and (4) consent to 

the entry of the order contained herein. 

FINDINGS OF FACT

1. (a) Respondent Robert E. O'Grady, an individual whose address is 100 North 

La Salle Street, Fourth Floor, Chicago, Illinois 60602, is now, and was at all 

times material herein, a registered floor broker under the Commodity Exchange 

Act and a member of the Chicago Mercantile Exchange. 

(b) Respondent Carl D. Leaven, an individual whose address is 100 North La 

Salle Street, Fourth Floor, Chicago, Illinois 60602, is now, and was at all 
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times material herein, a registered floor broker under the Commodity Exchange 

Act and a member of the Chicago Mercantile Exchange. 

(c) Respondent Leonard B. Feldman, an individual whose address is 110 North 

Franklin Street, Room 421, Chicago, Illinois 60606, is now, and was at all times 

material herein, a registered floor broker under the Commodity Exchange Act, a 

member of the Chicago Mercantile Exchange, and a general partner in respondent 

Time Trading Co. 

(d) Respondent Donald T. Barclay, an individual whose address is 10615 South 

Seeley Street, Chicago, Illinois 60643, was at all times material herein, a 

registered floor broker under the Commodity Exchange Act, a member of the 

Chicago Mercantile Exchange, and president of respondent Rittenhouse 

Investments, Inc. 

(e) Respondent Time Trading Co., a partnership whose address is 110 North 

Franklin Street, Chicago, Illinois 60606, is now, and was at all times material 

herein, a clearing member of the Chicago Mercantile Exchange and a registered 

futures commission merchant under the Commodity Exchange Act. 

(f) Respondent Rittenhouse Investments, Inc., a corporation whose address is 

10615 South Seeley Street, Chicago, Illinois 60643, was at all times material 

herein, a clearing member of the Chicago Mercantile Exchange, and is now, and 

was at all times material herein, a registered futures commission merchant under 

the Commodity Exchange Act. 

2. The Chicago Mercantile Exchange is now, and was at all times material 

herein, a duly designated contract market under the Commodity Exchange Act. The 

transactions referred to in the complaint relate to the purchase and sale of 

pork belly futures contracts on the exchange. Such contracts could have been 

used for hedging transactions in interstate commerce in pork bellies or the 

products or by-products thereof, or for determining the price basis of 

transactions in interstate commerce in pork bellies, or for delivering pork 

bellies sold, shipped, or received in interstate commerce. 

3. On December 15, 1969, the respondents entered into the transactions in 

pork belly futures specified in the tabulation below, which transactions were 

wash sales or were of the character of wash sales. In entering into the said 

transactions, the respondents acted pursuant to, and in accordance with, an 

understanding or arrangement that reciprocal and offsetting purchases and sales 

would be made at specified prices whereby a 

profit of $ 19,500.00 would be reported to respondent Barclay's account and a 

loss of the same amount would be reported to respondent Feldman's account. 

See original document-page 4 

Quantity Buying (No. of (1970) Selling Spread 

Broker Customer contra- Future Price Broker Customer Time Difference

 cts) Leaven Barclay 50 February $ 43.30 O'Grady Feldman 12:24 60 points 

O'Grady Barclay 50 March 42.70 Leaven Feldman 12:24 60 points 

O'Grady Feldman 50 February 43.95 Leaven Barclay 12:26 60 points 

Leaven Feldman 50 March 43.35 O'Grady Barclay 12:26 60 points 

CONCLUSIONS

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

that, as charged in the complaint, respondents Robert E. O'Grady, Carl D. 

Leaven, Leonard B. Feldman and Time Trading Co. (1) entered into transactions 

which were, or were of the character of, wash sales or fictitious sales, in 

wilful violation of section 4c of the Commodity Exchange Act (7 U.S.C. 6c), and 
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(2) executed purchases and sales of commodities for future delivery in a manner 

that was not open and competitive, in wilful violation of section 1.38 of the 

regulations (17 CFR 1.38). 

The complainant states that the Commodity Exchange Authority has carefully 

considered the proposed order, and that the Authority believes the proposed 

sanctions are adequate and the prompt entry of such an order would constitute a 

satisfactory disposition of this case as to respondents O'Grady, Leaven, Feldman 

and Time Trading Co. The complainant states that the Commodity Exchange 

Authority has informed respondents Feldman and Time Trading Co. of the 

Authority's position that if respondent Time Trading Co. should for its 

partnership account during the period of the denial of trading privileges to 

respondent Feldman and while he remains a partner in respondent Time Trading 

Co., such trading would constitute a violation on the part of respondent Feldman 

of the order denying him trading privileges. The complainant recommends that 

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

that the complainant's recommendation should be adopted. 

ORDER

Effective upon the date of service of this order upon respondents Robert E. 

O'Grady, Carl D. Leaven, Leonard B. Feldman and Time Trading Co., they shall 

cease and desist from: (1) entering into, or offering to enter into, any futures 

transaction subject to the Commodity Exchange Act if such transaction is, is of 

the character of, or is commonly known to the trade as, a "wash sale"; and (2) 

executing any futures transaction subject to the Commodity Exchange Act if such 

transaction is not executed openly and competitively in accordance with section 

1.38 of the regulations issued under the Commodity Exchange Act (17 CFR 1.38). 

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

the registrations of respondents Robert E. 

O'Grady, Carl D. Leaven and Leonard B. Feldman as floor brokers under the 

Commodity Exchange Act are suspended for a period of ten (10) days, and (2) 

these respondents are prohibited from trading on or subject to the rules of any 

contract market for a period of ten (10) days, and all contract markets shall 

refuse all trading privileges to respondents Robert E. O'Grady, Carl D. Leaven 

and Leonard B. Feldman during this period, such prohibition and refusal to apply 

to all trading done and all positions held by them, or any of them, directly or 

indirectly. 

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