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Commodity Futures Trading Commission 

CEA CASES 

NAME: ANDCO, INC., AND GLENN H. ANDERSEN 

DOCKET NUMBER: 203 

DATE: OCTOBER 5, 1972 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Andco, Inc., and Glenn H. Andersen, Respondents 

CEA Docket No. 203 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondents have violated the Commodity 

Exchange Act, as amended, (7 U.S.C. 1 et seq.) and the regulations made pursuant 

thereto, and this complaint and notice of hearing is issued stating the charges 

in that respect as follows: 

I 

Respondent Andco, Inc., an Illinois corporation with its place of business at 

110 North Franklin Street, Chicago, Illinois, was at all times material herein a 

registered futures commission merchant under the Commodity Exchange Act and so 

engaged in business. 

II 

Respondent Glenn H. Andersen, whose business address is the same as that of 

the respondent corporation, is now and was at all times material herein, 

Chairman of the Board of Directors of respondent Andco, Inc. At all such times 

Glenn H. Andersen had responsibility for the management, direction and control 

of the corporation. 

III 

(a) At all times material herein, respondent Andco, Inc., in the regular 

course of its business as futures commission merchant, carried accounts of 

customers who traded in commodity futures on contract markets subject to the 

provisions of the Commodity Exchange Act and the regulations thereunder. Such 

accounts, the trading therein, and the handling and disposition of funds in 

connection therewith, were subject to the provisions of the Act and regulations. 

At all such times, the respondent Andco, Inc., had to its credit with banks or 

other depositories, money and securities in varying amounts, held in segregated 

accounts and identified as customers' funds, representing deposits of margin by 

and trading profits accruing to such customers. 

(b) Examination of the records of the respondent corporation by the Commodity 

Exchange Authority disclosed, as shown in the tabulation below, (1) that on 

January 29, 1971, the respondent corporation was undersegregated by over $ 

910,000.00 and (2) that on January 29, 1971, and April 8, 1971, the daily 

computation and record that was prepared and kept by the respondent to meet the 

requirements of section 1.32 of the regulations under the Commodity Exchange Act 

(17 CFR 1.32) contained errors which resulted in gross misstatements of the 

respondents segregated condition: 

See original document-page 2 

Respondent's 
Page 2 

Segregation Record Per CEA Examination

(Undersegregation) (Undersegregation) 

Date Oversegregation Oversegregation 

January 29, 1971 $ 393.500.82 ($ 910,596.82) 

April 8, 1971 $ 682,248.45 $ 154,851.34 

IV 

By reason of the facts alleged in this complaint, the respondents Andco, 

Inc., and Glenn H. Andersen, violated sections 4d and 4g of the Commodity 

Exchange Act (7 U.S.C. 6d, 6g) and sections 1.20, 1.21, 1.23, 1.32 and 1.35 of 

the regulations thereunder (17 CFR 1.20, 1.21, 1.23, 1.32, 1.35). 

WHEREFORE, it is hereby ordered that this complaint and notice of hearing be 

served upon the respondents and this proceeding shall be governed by sections 

0.1, 0.2, 0.4(b), 0.5 through 0.22 and 0.28 of the rules of practice under the 

Commodity Exchange Act (17 CFR 0.1, 0.2, 0.4(b), 0.5 through 0.22, 0.28). The 

respondents will have twenty (20) days after the receipt of this complaint in 

which to file with the Hearing Clerk, United States Department of Agriculture, 

Washington, D. C. 20250, an answer with an original and three copies, fully and 

completely stating the nature of the defense and admitting or denying, 

specifically and in detail, each allegation of this complaint. Allegations not 

answered will be deemed admitted for the purpose of this proceeding. Failure to 

file an answer will constitute an admission of all the allegations of this 

complaint and a waiver 

of hearing. The filing of an answer in which all of the material allegations of 

fact contained in the complaint are admitted likewise shall constitute a waiver 

of hearing unless a hearing is requested. The respondents are hereby notified 

that unless hearing is waived, a hearing will be held in Chicago, Illinois, at a 

place therein and date to be specified later, before a referee designated to 

conduct such hearing. At such hearing, the respondents will have the right to 

appear and show cause, if any there be, why an appropriate order should not be 

issued in accordance with the Commodity Exchange Act, directing that the 

respondents shall cease and desist from violating the Act and regulations in the 

manner alleged herein. 

Done at Washington, D. C. 

October 5, 1972 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Acting Secretary 

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