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Commodity Futures Trading Commission 

CEA CASES 

NAME: NEVIN F. HENCH 

DOCKET NUMBER: 230 

DATE: JUNE 24, 1974 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Nevin F. Hench, Respondent 

CEA Docket No. 230 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent, Nevin F. Hench, has violated 

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

pursuant thereto. In accordance with the provisions of sections 6(b) and 6(c) 

of the Act (7 U.S.C. §§ 9 and 13b), this Complaint and Notice of Hearing is 

issued stating the charges in that respect as follows: 

I 

The respondent, Nevin F. Hench, an individual, resides at 4201-66th Avenue 

North, Brooklyn Center, Minnesota. 

II 

From on or about June, 1972 through on or about July, 1973 respondent 

solicited and accepted orders for the purchase or sale of commodities for future 

delivery on or subject to the rules of one or more contract markets. In 

connection with such solicitation and acceptance of orders respondent accepted 

monies to margin, guarantee, or secure trades, without having registered as a 

futures commission merchant under the Commodity Exchange Act, as follows: 

See original document-page 1 

Amount of 

Customer Funds Accepted

Michael James Bakke $ 1,600.00

Harold M. Christenson 1,000.00

Rand D. Leeman 1,000.00

Ronald G. Oswald 6,000.00

Frank J. Jeffers 8,000.00

Inari Paaskynen 1,000.00

Dorothy E. Meany 1,000.00

Bernice Grotenhuis 2,000.00

Gerald S. Jones 1,400.00

Bruce B. Reimer 600.00

Dennis M. Morin 800.00

Michael E. Migatz 2,500.00

Martin C. Christiansen 3,000.00

Calixte L. Robideaux 2,000.00

Harold M. Juutilainen 8,000.00

 Total $ 39,900.00

III 

During the period from on or about June, 1972 through on or about July, 1973 

while engaged as a futures commission merchant, respondent converted to his own 

use and failed to hold in separate accounts, the money received by him to margin 
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or secure the trades or contracts of his customers as detailed in paragraph 2 

above. 

IV 

During this period, respondent knowingly made false and deceptive statements 

to the customers listed in paragraph II above concerning (a) activity in 

customers' accounts, although no accounts were opened in such customers' names, 

and (b) profits realized from activity in such customers' accounts. 

V 

The transactions in commodities for future delivery referred to herein, if 

executed, could have been used for (a) hedging transactions in interstate 

commerce in such commodities or the products or by-products thereof or (b) 

determining the price basis of transactions in interstate commerce in such 

commodities, or (c) delivering any such commodities sold, shipped, or received 

in interstate transactions for the fulfillment of such futures contracts. 

VI 

By reason of the facts alleged in this complaint the respondent wilfully 

violated section 4b, 4d, and 9 of the Commodity Exchange Act (7 U.S.C. §§ 6b, 6d 

and 13), and section 1.20 of the regulations issued thereunder (17 CFR 1.20). 

WHEREFORE, it is hereby ordered that this Complaint and Notice of Hearing be 

served upon the respondent 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 and 0.28). The respondent shall 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, 

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 the 

material allegations of fact contained in this Complaint are admitted likewise 

will constitute a waiver of hearing unless a hearing is requested. The 

respondent is hereby notified that unless a hearing is waived, a hearing will be 

held at a place and date to be specified later, before an Administrative Law 

Judge designated to conduct such hearing. At such hearing the respondent shall 

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) 

prohibiting the respondent from trading on or subject to the rules of any 

contract market, and directing that all contract markets refuse all trading 

privileges to the respondent for such period 

of time as may be determined, and (2) directing that the respondent shall cease 

and desist from violating the Act and regulations in the manner alleged herein. 

Done at Washington, D.C. 

June 24 1974 

[SEE SIGNATURE IN ORIGINAL] 

RICHARD L. FELTNER 

Assistant Secretary 
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