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Commodity Futures Trading Commission 

CEA CASES 

NAME: MILLER-LANE & COMPANY, AND GEORGE C. LANE 

DOCKET NUMBER: 225 

DATE: APRIL 9, 1974 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Miller-Lane & Company, and George C. Lane, Respondents 

CEA Docket No. 225 

Complaint and Notice of Hearing under the Commodity Exchange Act 

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

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

and this Complaint and Notice of Hearing is issued alleging the following: 

I 

Respondent Miller-Lane & Company, an Illinois corporation with its principal 

office and place of business at 343 South Dearborn Street, Chicago, Illinois 

60604, is now, and was at all times material herein, a registered futures 

commission merchant under the Commodity Exchange Act, engaged in trading in 

commodities for future delivery. 

II 

Respondent George C. Lane, an individual whose business address is the same 

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

president and sole stockholder of Miller-Lane & Company and registered as a 

floor broker under the Commodity Exchange Act. At all such times, respondent 

Lane had responsibility for the operation and management of the corporate 

respondent. 

III 

At all times material herein, the respondents Miller-Lane & Company and 

George C. Lane were required to separately account for and segregate all money, 

securities, and property received to margin, guarantee, or secure the trades or 

contracts of commodity customers in accordance with the requirements of section 

4d(2) of the Commodity Exchange Act (7 U.S.C. 6d) and section 1.20 of the 

regulations issued thereunder (17 CFR 1.20). 

IV 

The segregation records of the respondent Miller-Lane & Company disclose that 

the respondent Miller-Lane & Company failed to keep funds in segregated accounts 

sufficient to pay the equities due all regulated commodity customers as of the 

respective dates as follows: 

Date Amount of Undersegregation

August 22, 1973 $ 138,330.25

August 23, 1973 173,801.27

August 24, 1973 200,899.10

August 27, 1973 84,459.88

August 28, 1973 59,939.01

August 29, 1973 67,980.83

V 
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On April 30, 1973, and July 31, 1973, the respondent corporation was engaged 

in business as a registered futures commission merchant under 

the Commodity Exchange Act, notwithstanding that on both dates it failed to meet 

the minimum financial requirements under section 4f of the Commodity Exchange 

Act (7 U.S.C. 6f) and section 1.17 of the regulations issued thereunder (17 CFR 

1.17). As of April 30, 1973, the respondent corporation lacked approximately $ 

86,000 of having sufficient capital to meet such minimum financial requirements 

under the Act, and on July 31, 1973, it lacked approximately $ 77,000 of having 

sufficient capital to meet the minimum financial requirements. 

VI 

On June 21, 1973, the respondent corporation submitted to the Commodity 

Exchange Authority a financial report (Form 1-FR) as of January 31, 1973, 

certified by the respondent George C. Lane to reflect the true financial 

position of the corporation. The said respondents made material false 

statements in such report by overstating the amount of adjusted excess working 

capital by approximately $ 44,000. On October 31, 1973, respondent corporation 

submitted to the Commodity Exchange Authority a financial report (Form 1-FR) as 

of July 31, 1973, certified by the respondent George C. Lane to reflect the true 

financial position of the corporation. The said respondents wilfully made 

material false statements in such report by stating that the corporation had an 

excess of adjusted working capital when in fact it failed to meet minimum 

financial requirements under the Commodity Exchange Act by approximately $ 

77,000. 

VII 

Under the regulations issued pursuant to the Commodity Exchange Act 

(17 CFR 1.10), the respondent corporation was obligated at all times material 

herein to prepare a written computation of its net worth at least once each 

month. Further, whenever such computation showed, or the respondent knew or had 

reason to believe, that its net worth had declined 20 percent or more from its 

net worth as shown in the previous report of its financial condition, the 

respondent corporation was obligated to immediately notify the Commodity 

Exchange Authority. The dates of examination of records of respondent 

corporation and the months the respondent corporation failed to prepare the net 

worth computation are as follows: 

Months Net Worth 

Date of Examination Computation Not Prepared 

May 22, 1973 March and April, 1973 

June 7, 1973 April, 1973 

July 9, 1973 May, 1973 

August 28, 1973 July, 1973 

November 5, 1973 August and September, 1973 

December 11, 1973 August, September, and 

October, 1973 

January 10, 1974 October and November, 1973 

The months respondent corporation failed to notify the Commodity Exchange 

Authority of the reduction in net worth of 20 percent or more from the January 

31, 1973 financial statement and the percentage decreases are as follows: 

Month Approximate Percentage Decrease

February, 1973 23%
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See original document-page 4 

Month Approximate Percentage Decrease

March, 1973 34%

April, 1973 43%

May, 1973 55%

June, 1973 62%

VIII 

Section 1.35 of the regulations promulgated under the Commodity Exchange Act 

(17 CFR 1.35) obligated respondent corporation to keep "Full, complete, and 

systematic records . . . relating to his business of dealing in commodity 

futures . . . . Included among such records shall be all . . . ledgers." As of 

April 17, 1973, the respondent corporation had failed to post its general ledger 

for December 1972 through March 1973. As of August 27, 1973, the general ledger 

had not been posted for July 1973. As of December 11, 1973, the general ledger 

had not been posted for August through November 1973. As of January 10, 1974, 

the general ledger had not been posted for November or December 1973. 

IX 

By reason of the facts alleged in this Complaint, the respondents have 

wilfully violated sections 4d, 4f, 4g, and 6(b) of the Commodity Exchange Act (7 

U.S.C. 6d, 6f, 6g, and 9) and sections 1.10, 1.17, 1.20, and 1.35 of the 

regulations issued thereunder (17 CFR 1.10, 1.17, 1.20, and 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. A 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 such hearing is 

waived, a hearing will be held in Chicago, Illinois, at a place therein and date 

to be specified later, before an Administrative Law Judge 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, (1) suspending or revoking the 

registration of respondent Miller-Lane & Company as futures commission merchant, 

(2) suspending or revoking the registration of respondent Lane as floor broker, 

(3) prohibiting the respondents from trading on or subject to 

the rules of any contract market, and directing that all contract markets refuse 

all trading privileges to the respondents for such period of time as may be 

determined, and (4) directing that the respondents shall cease and desist from 

violating the Act and regulations in the manner alleged herein. 

Done at Washington, D. C. 

APR 9 1974 

[SEE SIGNATURE IN ORIGINAL] 
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Acting Secretary 

LOAD-DATE: June 12, 2008 
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