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Commodity Futures Trading Commission 

CEA CASES 

NAME: ARTHUR GERBER, AND GERBER INVESTMENT CO., INC. 

DOCKET NUMBER: 150 

DATE: JANUARY 4, 1968 

DOCUMENT TYPE: AMENDED COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Arthur Gerber, and Gerber Investment Co., Inc., Respondents 

CEA Docket No. 150 

Amended Complaint and Notice of Hearing Under Section 6(b) of the Commodity 

Exchange Act 

There is reason to believe that the respondents named herein have violated 

the Commodity Exchange Act (7 U.S.C. 1 et seq.), hereinafter called the act, and 

the regulations made pursuant thereto (17 CFR, Part 15, and in accordance with 

the provisions of section 6(b) of the act (7 U.S.C. 9) and section 0.5(c) of the 

rules of practice under the act (17 CFR 0.5(c)), this amended complaint and 

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

I 

Respondent Arthur Gerber is an individual whose business address is 230 North 

Michigan Avenue, Chicago, Illinois. 

II 

Respondent Gerber Investment Co., Inc., an Illinois corporation with its 

office and place of business at 230 North Michigan Avenue, Chicago, Illinois, is 

registered as a futures commission merchant under the act and has been so 

registered since November 29, 1967. 

At all times material herein, respondent Arthur Gerber was in complete control 

of the respondent corporation, initiated and carried out the acts, dealings, and 

transactions of the corporation, and used the corporation as an instrument to 

conduct his own business. 

III 

At all times during the period from October 26 through December 8, 1967, 

inclusive, the respondents, acting in the capacity of futures commission 

merchant under the act, carried accounts for customers who traded in commodity 

futures subject to the provisions of the act and regulations thereunder, and had 

received funds belonging to such customers, representing deposits of margin by 

and trading profits accruing to such customers. During the same period, the 

respondents failed and refused to segregate and to account separately for the 

funds belonging to their customers, deposited such funds in the respondents' 

general bank account, used customers' funds for the respondents' own benefit, 

and failed and refused to prepare and maintain a daily record setting forth the 

amount of customers' money and equities required to be kept in segregation in 

accordance with the provisions of section 4d of the act (7 U.S.C. 6d). 

IV 
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On December 19, 1967, representatives of the Commodity Exchange Authority, 

namely, Robert P. Piccirillo and Ronald S. Szatko, visited 

the respondents' office and requested the respondents to produce for inspection 

their records regarding the commodity futures transactions of their customers, 

in order that a determination might be made with respect to whether the funds of 

such customers were being properly handled in accordance with the provisions of 

section 4d of the act (7 U.S.C. 6d) and the regulations supplementary thereto, 

but the respondents refused and are now refusing to produce such records. 

V 

By reason of the facts described in this amended complaint, the respondents 

wilfully violated sections 4d and 4g of the act (7 U.S.C. 6d and 6g) and 

sections 1.20, 1.21, 1.31, 1.32 and 1.35 of the regulations issued under the act 

(17 CFR 1.20, 1.21, 1.31, 1.32 and 1.35). 

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

hearing be served upon the said respondents. The respondents will have twenty 

(20) days after the receipt of this amended complaint in which to file with the 

Hearing Clerk, United States Department of Agriculture, Washington, D. C. 20250, 

an answer with an original and five copies, fully and completely stating the 

nature of the defense and admitting or denying, specifically and in detail, each 

allegation of this amended 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 amended 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 February 7, 1968, in Chicago, 

Illinois, 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 

suspending or revoking the registration of respondent Gerber Investment Co., 

Inc., as futures commission merchant, and directing that all contract markets 

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

be determined. 

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

each of the said respondents at least twenty (20) days prior to the date set for 

hearing. 

Done at Washington, D. C. 

January 4, 1968 

George L. Mehren 

Assistant Secretary 

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