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Commodity Futures Trading Commission 

CEA CASES 

NAME: EUGENE T. MUELLER, ROBERT J. MURPHY AND JAMES W. KOZINSKI 

DOCKET NUMBER: 183 

DATE: SEPTEMBER 2, 1971 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Eugene T. Mueller, Robert J. Murphy and James W. Kozinski, Respondents 

CEA Docket No. 183 

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 stating the charges in that 

respect as follows: 

I 

The respondents, Eugene T. Mueller, Robert J. Murphy and James W. Kozinski, 

are now, and were at all times material herein, registered floor brokers under 

the Commodity Exchange Act and members of the Chicago Mercantile Exchange, 

hereinafter referred to as the exchange. 

II 

The exchange is now, and was at all times material herein, a duly designated 

contract market under the Commodity Exchange Act. 

III 

The transactions referred to in this complaint relate to the purchase and 

sale of pork belly futures contracts on the exchange. 

Such contracts could have been used for hedging transactions in interstate 

commerce in pork bellies or the products or by-products thereof, or for 

determining the price basis of transactions in interstate commerce in pork 

bellies, or for delivering pork bellies sold, shipped, or received in interstate 

commerce. 

IV 

Respondents Mueller and Kozinski, on December 30, 1968, entered into the 

transactions specified in the tabulation below, which transactions were wash 

sales or were of the character of wash sales. In entering into the said 

transactions the said respondents acted pursuant to, and in accordance with, an 

understanding or arrangement that reciprocal and offsetting purchases and sales 

would be made at little or no price advantage or disadvantage to the said 

respondents, 

(1969) Respondent Quantity Price Respondent 

Future Buying (No. of contracts) (Cents per pound) Selling 

February Mueller 50 32.00 Kozinski 

March Kozinski 50 31.92 1/2 Mueller 

February Kozinski 50 32.62 1/2 Mueller 

March Mueller 50 32.55 Kozinski 
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V 

Respondents Mueller and Murphy, on December 30, 1968, December 31, 1968 and 

January 2, 1969, entered into the transactions specified in the tabulation 

below, which transactions were wash sales or were of the character of wash 

sales. In entering into the said transactions the said respondents acted 

pursuant to, and in accordance with, an understanding or arrangement that 

reciprocal and offsetting purchases 

and sales would be made at little or no price advantage or disadvantage to the 

said respondents. 

Quantity Price 

(1969) Respondent (No. of (Cents per Respondent 

Date Future Buying contracts) pound) Selling 

12/30/68 February Mueller 50 32.02 1/2 Murphy 

12/30/68 March Murphy 50 31.92 1/2 Mueller 

1/2/69 February Murphy 50 32.00 Mueller 

1/2/69 March Mueller 50 31.92 1/2 Murphy 12/31/68 March Murphy 100 32.52 1/2 Mueller 

12/31/68 August Mueller 100 32.05 Murphy 

12/31/68 March Mueller 100 32.52 1/2 Murphy 

12/31/68 August Murphy 100 32.05 Mueller 

VI 

By reason of the facts alleged in this complaint, the respondents: (1) 

entered into transactions which were, or were of the character of, wash sales or 

fictitious sales, in wilful violation of section 4c of the Commodity Exchange 

Act (7 U.S.C. 6c); and (2) executed purchases and sales of commodities for 

future delivery in a manner which was not open and competitive, in wilful 

violation of section 1.38 of the regulations (17 CFR 1.38). 

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 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 

October 13, 1971, 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 appropriate order should not be issued in accordance with the Commodity 

Exchange Act, (1) suspending or revoking the registrations of the respondents as 

floor brokers, (2) 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 
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for such period of time as may be determined and (3) directing that the 

respondents shall cease and desist from violating the Act and regulations in the 

manner alleged 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. 

September 2, 1971 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

LOAD-DATE: June 16, 2008 
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