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Commodity Futures Trading Commission 

CEA CASES 

NAME: SECRETARY OF AGRICULTURE V. HUGH S. GAMBLE AND SPTEPHEN A. BURKE 

DOCKET NUMBER: 8 

DATE: AUGUST 5, 1938 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

C. E. A. DOCKET NO. 8 

Secretary of Agriculture, Complainant, vs. Hugh S. Gamble and Sptephen A. Burke, 

Respondents. 

Complaint and Notice of Hearing under Section C(b) of the Commodity Exchange 

Act. 

The Secretary of Agriculture has reason to believe that the respondents 

hereinafter named have violated the Commodity Exchange Act (7 U.S.C. and Supp. 

3, Sees. 1-17a) and the rules and regulations promulgated pursuant thereto, and, 

therefore, issues this complaint alleging the following: 

1. That Hugh S. Gamble and Stephen A. Durke are individuals residing at Sioux 

Falls, South Dakota. 

2. That heretofore and between June 1, 1937, and December 31, 1937, at Sioux 

Falls, South Dakota, the said Hugh S. Gamble and Stephen A. Burke, acting by and 

through the means of Burke & Company, a corporation organized under the laws of 

the State of South Dakota, said Stephen A. Burke being the President and Hugh S. 

Gamble the Vice President of said corporation, did engage as futures commission 

merchants in soliciting and accepting orders 

for the purchase and sale of commodities for future delivery, involving 

contracts of sale of such commodities for future delivery on or subject to the 

rules of the Board of Trade of the City of Chicago, a contract market designated 

by the Secretary of Agriculture pursuant to the provisions of the Commodity 

Exchange Act, and while so engaged did accept orders from various persons for 

the purchase and sale of grain and other commodities as defined in the Commodity 

Exchange Act for future delivery and did receive funds from said persons to 

margin and guarantee the respective trades and contracts of said persons in such 

commodities and, as a result of such trades, received additional funds belonging 

to such persons and, at such times and places and while so engaged, the 

respondents, Hugh S. Gamble and Stephen A. Burke, violated the provisions of 

section 4 d (2) of the Commodity Exchange Act, as follows: 

(a) The respondents failed to account separately for the funds so received in 

that on January 6, 1938, there were due commodity customers funds in excess of $ 

80,000 and funds segregated for the benefit of such customers amounted to only $ 

22,673.51, leaving a shortage of approximately $ 60,000 in the commodity 

customers' accounts and the respondents did in fact commingle those said funds 

with the funds of the said Burke & Company and the funds of security customers 

of said company. 

(b) The respondents used the funds so received to margin and guarantee the 

trades contracts of Hugh S. Gamble and to extend 
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credit to Hugh S. Gamble in a sum in excess of $ 50,000, which said sum was 

taken by said Stephen A. Burke and Hugh S. Gamble, acting as aforesaid, out of 

the funds received by the said Burke & Company from various persons to margin 

and guarantee the respective trades and contracts of said persons in grain and 

other commodities as defined in the Commodity Exchage Act. 

(c) The respondents failed to deal with the money so received as belonging to 

said customers, but did in fact, on the 9th day of June, 1937, draw and cause to 

be drawn a certain check numbered 2999, in the amount of $ 4500, payable to R. 

J. Welland, and thereby extracted the said sum of $ 4500 from a certain account 

of the said Burke & Company in the First National Bank & Trust Company of Sioux 

Falls, South Dakota, designated "Customers' Margin Account Number 1", for the 

purpose of paying the personal obligation of the said Stephen A. Burke. 

3. That heretofore and between January 1, 1938, and January 6, 1938, at Sioux 

Falls, South Dakota, the said Stephen A. Burke and Hugh S. Gamble, acting by and 

through the means of Burke & Company, a corporation organized under the laws of 

the State of South Dakota, did engage as futures commission merchants in 

soliciting and accepting orders for the purchase and sale of commodities for 

future delivery involving contracts of sale of such commodities for future 

delivery, subject to the rules of the Board of Trade of the City of Chicago, a 

contract market designated by the Secretary of Agriculture, pursuant to the 

provisions of the Commodity Exchange 

Act, after the said Burke & Company's registration with the Secretary of 

Agriculture as such futures commission merchants under the Commodity Exchange 

Act had expired and without having re-registered pursuant to the provisions of 

said act, all in violation of Section 4 d (1) of the Commodity Exchange Act. 

Therefore, unless the allegations contained herein are admitted and a hearing 

is waived, each of the said respondents is hereby notified to be and appear at a 

hearing to be held at 10 o'clock a.m., on the 17th day of August, 1938, at Room 

1832 South Building, Department of Agriculture, Washington, D. C., before a 

referee to be designated by the Secretary of Agriculture to conduct such 

hearing, and then and there show cause, if any there be, why an order should not 

be made directing all contract markets, until further notice of the Secretary of 

Agriculture, to refuse all trading privileges to each of such respondents. 

IT IS ORDERED that the Complaint and Notice of Hearing be served on each of 

the named respondents by delivery of a true copy hereof to each of them by an 

employee of the Department of Agriculture, or by registered mail, at least three 

days prior to the date herein set for hearing. 

IN WITNESS WHEREOF, the Secretary 

of Agriculture has hereunto set his 

hand and caused the official seal 

of the Department of Agriculture to 

be affixed hereto, in the City of 

Washington, District of Columbia, 

this 5th day of August, 1938. 

Secretary's File Room 

(Signed) 

[SEE SIGNATURE IN ORIGINAL] 

Secretary of Agriculture 

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