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Commodity Futures Trading Commission 

CEA CASES 

NAME: RODNEY KAMINGA 

CITATION: 29 Agric. Dec. 1126 

DOCKET NUMBER: 172 

DATE: OCTOBER 27, 1970 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 13,442) 

In re RODNEY KAMINGA. CEA Docket No. 172. Decided October 27, 1970. 

Reporting requirements -- Denial of trading privileges -- Default

Respondent is ordered to cease and desist from failing to file required 

reports with the Commodity Exchange Authority and is prohibited from trading on 

any of the contract markets for a period of 30 days. 

Earl L. Saunders for Commodity Exchange Authority. 

John G. Liebert, Hearing Examiner. 

Decision by Thomas J. Flavin, Judicial Officer

DECISION AND ORDER

In this administrative proceeding under the Commodity Exchange Act (7 U.S.C. 

Chapter 1, 1964 ed., as amended, Supp. IV, 1969), respondent failed to file an 

answer to the complaint and did not file exceptions to the referee's (hearing 

examiner's) recommended decision and proposed order. 

The hearing examiner's recommended decision and proposed order are adopted as 

the final decision and order herein. The order shall become effective on the 

thirtieth day after the date of this order and copies hereof shall be served on 

each of the parties and on each contract market. 

HEARING EXAMINER'S RECOMMENDED DECISION AND ORDER

PRELIMINARY STATEMENT

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

U.S.C. Chapter 1, 1964 ed., as amended, Supp. IV, 

1969), hereinafter referred to as the "Act", instituted by a complaint filed on 

May 14, 1970, by the Assistant Secretary of Agriculture. The complaint alleges 

that the respondent, who held open contract positions in live beef cattle 

futures on the Chicago Mercantile Exchange, violated section 4i of the Act by 

reason of the activities set forth therein. 

Copies of the complaint and the Rules of Practice were served on respondent 

by certified mail on May 15, 1970, and a certified mail receipt acknowledged 

delivery to respondent on May 18, 1970. Respondent was notified in writing 

that, in accordance with the applicable Regulations, an answer should be filed 

within 25 days following receipt of the complaint, and that failure to file an 

answer denying the specific allegations in the complaint and requesting an oral 

hearing would constitute admission of such allegations and waiver of an oral 

hearing. 
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Respondent did not file an answer within the 25-day period and on motion made 

by complainant the referee entered an order for continuance on July 29, 1970. 

Complainant filed suggested findings of fact, conclusions and order on September 

3, 1970. In addition, complainant recommended that the referee proceed in 

accordance with Section 0.9(c) of the Rules of Practice (17 CFR 0.9(c)) which 

provides as follows: 

"(c) Procedure upon admission of facts. The admission, in the answer or by 

failure to file an answer, of all the material allegations of fact contained in 

the complaint shall constitute a waiver of hearing. Upon such admission of 

facts, the referee, without further investigation or hearing, shall prepare his 

report, in which he shall adopt as his proposed findings of fact the material 

facts alleged in the complaint." 

Respondent has still failed to file an answer or other responsive pleading in 

this matter. Accordingly, this Recommended Decision is entered pursuant to 

Section 0.9(c) of the Rules of Practice and the Proposed Findings of Fact are 

the material allegations set forth in the complaint. 

PROPOSED FINDINGS OF FACT

1. The respondent, Rodney Kaminga, is an individual whose mailing address is 

P. O. Box 885, Three Forks, Montana 59752. 

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

this complaint, a duly designated contract market under the Commodity Exchange 

Act. 

3. On each day from March 24 through April 9, 1970, the respondent held open 

contract positions in live beef cattle futures on the Chicago Mercantile 

Exchange of 25 or more contracts in a single future. By reason thereof, the 

respondent was in reporting status and was required to report to the Commodity 

Exchange Authority with respect to all transactions executed and all open 

contract positions held by him, in all live beef cattle futures on all boards of 

trade during the said period and with respect to all transactions by reason of 

which the respondent's position was reduced below reporting levels, as provided 

in section 4i of the Commodity Exchange Act (7 U.S.C. 6i, Supp. IV, 1969), and 

sections 15.01, 15.02, 15.03, 18.00, 18.01, and 18.03 of the regulations 

thereunder (17 CFR 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03). 

4. On March 24, 25 and 31, 1970, and April 1, 3, 6, 7, 8 and 9, 1970, while 

the respondent was in reporting status as described in paragraph 3 above, 

transactions in live beef cattle futures on the Chicago Mercantile Exchange were 

executed for his account, but the respondent has failed and refused to report to 

the Commodity Exchange Authority with respect to such transactions, as required 

under the aforesaid provisions of the Commodity Exchange Act and regulations. 

5. On numerous occasions dating as far back as March 18, 1969, and continuing 

up to January 23, 1970, officials of the Commodity Exchange Authority not only 

informed the respondent of the reporting requirements under the Commodity 

Exchange Act and regulations with respect to live beef cattle futures, but also 

found it necessary to communicate with the respondent in writing directing 

attention to the respondent's failure to file required reports. On one occasion 

the respondent wrote a letter to the Administrator of the Commodity Exchange 

Authority with respect to the filing of such reports. In the circumstances, the 

respondent was fully aware of his reporting obligations under the aforesaid 

provisions of the Commodity Exchange Act and regulations and his failure and 

refusal to file required reports, as described in paragraph 4 above, constituted 

a knowing and wilful violation of such provisions of the Act and regulations. 

PROPOSED CONCLUSIONS

The failure of respondent to file an answer in this matter constitutes waiver 

of an oral hearing and an admission of the material allegations of fact in the 

complaint. 
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By reason of the findings of facts set forth above, it is concluded that 

respondent failed and refused to file required reports and that such failure is 

a violation of section 4i of the Commodity Exchange Act and sections 15.01, 

15.02, 15.03, 18.00, 18.01 and 18.03 of the regulations issued thereunder. 

In view of the flagrant and deliberate nature of these violations, it is 

concluded that the respondent should be ordered to cease and desist from 

violations of this nature, and prohibited from trading on all contract markets 

for a period of 30 days, and that all contract markets should be directed to 

refuse all trading privileges to respondent for a period of 30 days from the 

effective date of this order, as recommended by complainant. 

PROPOSED ORDER

(a) The respondent, Rodney Kaminga, shall cease and desist from failing to 

file, in accordance with the Commodity Exchange Act and the regulations 

thereunder, such reports as he is required to file under such Act and 

regulations. 

(b) The respondent, Rodney Kaminga, is prohibited from trading on or subject 

to the rules of any contract market for a period of 30 days, and all contract 

markets shall refuse all trading privileges to the respondent during this 

period, such prohibition and refusal to apply to all trading done and all 

positions held by the respondent, directly or indirectly. 

The cease and desist provisions of this order, set forth in subparagraph (a) 

above, shall become effective upon the date of service of this order upon the 

respondent. The period of the denial of trading privileges to the respondent, 

specified in subparagraph (b) above, shall become effective on the thirtieth day 

after the date of entry of this order. 

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

on each contract market. 

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