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Commodity Futures Trading Commission 

CEA CASES 

NAME: AMERICAN COMMODITY BROKERS, INC., AND PHYLLIS C. DEMPSTER 

DOCKET NUMBER: 160 

DATE: MAY 29, 1969 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: American Commodity Brokers, Inc., and Phyllis C. Dempster, Respondents 

CEA Docket No. 160 

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.; Public Law 90-258) and the 

regulations made pursuant thereto. Therefore, this complaint and notice of 

hearing is issued stating the charges in that respect as follows: 

I 

Respondent American Commodity Brokers, Inc., is now, and was at all times 

material herein, a corporation organized and existing under the laws of the 

State of Michigan, with its principal office at 14500 West Eight Mile Road, Oak 

Park, Michigan. The said corporation is now, and was at all such times, a 

registered futures commission merchant under the Commodity Exchange Act, engaged 

in trading in commodities for future delivery for the accounts of customers and 

holding for such customers sums of money, representing deposits of margin by and 

trading profits accruing to such customers. 

II 

Respondent Phyllis C. Dempster, an individual whose business address is 14500 

West Eight Mile Road, Oak Park, Michigan 48200, is now, and was at all times 

material herein, President of the respondent corporation. At all such times, 

the operations of the respondent corporation were under the direction and 

control of respondent Phyllis C. Dempster. 

III 

As of March 31, 1969, the respondent corporation failed to meet the minimum 

financial requirements prescribed by section 1.17 of the regulations (34 F.R. 

599) issued by the Secretary of Agriculture under the Commodity Exchange Act. 

According to the report of the respondent corporation's financial condition 

(Form 1-FR) which it filed with the Commodity Exchange Authority on April 30, 

1969, the respondent corporation, as of March 31, 1969, had current liabilities 

of $ 34,790.91 and current assets of $ 21,008.80. 

IV 

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

section 4f of the Commodity Exchange Act (7 U.S.C. 6f, as amended by Public Law 

90-258) and section 1.17 of the regulations issued thereunder (34 F.R. 599). 

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, 
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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 four 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 purposes 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 at 10:00 a.m., local time, on 

July 10, 1969, in Detroit, Michigan, at a place therein 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 order should not be made directing that the respondents shall cease and 

desist from violating the Commodity Exchange Act and the regulations thereunder 

in the manner described herein. 

It is ordered that this complaint and notice of hearing be served on the 

respondents at least twenty (20) days prior to the date set for hearing. 

Done at Washington, D. C. 

May 29, 1969 

[SEE SIGNATURE IN ORIGINAL] 

Richard Lyng 

Assistant Secretary 

LOAD-DATE: June 16, 2008 
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