Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: STUART GIMBEL, AND GROW INVESTMENTS 

DOCKET NUMBER: 228 

DATE: MAY 31, 1974 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Stuart Gimbel, and Grow Investments, Respondents 

CEA Docket No. 228 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondents, Stuart Gimbel and Grow 

Investments, have violated the Commodity Exchange Act as amended, (7 U.S.C. 1 et 

seq.), hereinafter the "Act", 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 

Respondent Stuart Gimbel, an individual whose business address is 222 S. 

Riverside Plaza, Chicago, Illinois 60606, is now and has been since December 29, 

1969, a registered floor broker under the Act, and a member of the Chicago 

Mercantile Exchange. 

II 

Respondent Grow Investments, a partnership whose address is the same as that 

of the individual respondent, is now and has been since July 29, 1970, a 

registered futures commission merchant under the Act and is now and has been 

since January 4, 1970, a clearing member of the 

Chicago Mercantile Exchange. Respondent Gimbel is now and was at all times 

material a partner of Respondent Grow Investments. 

III 

At all times material herein the Chicago Mercantile Exchange was a duly 

designated contract market for shell egg futures under the Act. 

IV 

At all times material herein the speculative daily trading limit in shell egg 

futures as fixed by the Commodity Exchange Commission was one hundred and fifty 

(150) carlots in any one future or in all futures combined. 

V 

On December 3, 1969 and December 5, 1969 respondent Gimbel, trading for his 

personal accounts at Woodstock, Inc., and Time Trading Company, made speculative 

purchases of 163 and 161 carlots and speculative sales of 141 and 144 carlots, 

respectively, in shell egg futures, in all futures combined, on or subject to 

the rules of the Chicago Mercantile Exchange, as follows: 

An error occurred in the processing of a table at this point in the document. 

Please refer to the table in the online document. 

 
Page 2 

VI 

During the periods January 13, 1970 through January 30, 1970 and March 17, 

1970 through March 19, 1970, respondent Gimbel, placing his trades into his 

account (account no. 00060) and into the account of Jeffrey Greengoss, then a 

partner of respondent Grow Investments (account no. 00080), at Grow Investments, 

exceeded the speculative daily trading limit in shell egg futures on or subject 

to the rules of the Chicago Mercantile Exchange as follows: 

ALL FUTURES COMBINED 

An error occurred in the processing of a table at this point in the document. 

Please refer to the table in the online document. 

 

An error occurred in the processing of a table at this point in the document. 

Please refer to the table in the online document. 

FEBRUARY, 1970 FUTURE 

January 15, 1970 116 116 86 86 202 202

January 16, 1970 48 88 111 111 159 199

January 19, 1970 96 93 73 73 169 166

January 20, 1970 96 92 64 64 160 156

January 22, 1970 35 35 125 113 160 148

MARCH, 1970 FUTURE 

March 17, 1970 139 143 146 146 285 289

March 18, 1970 100 101 66 87 166 188

VII 

During the period June 6, 1972 through November 17, 1972, respondent Gimbel, 

exceeded the speculative daily trading limits in all futures combined, in shell 

egg futures, on or subject to the rules of the Chicago Mercantile Exchange as 

follows: 

An error occurred in the processing of a table at this point in the document. 

Please refer to the table in the online document. 

 

An error occurred in the processing of a table at this point in the document. 

Please refer to the table in the online document. 

 

VIII 

On the dates listed below respondent Gimbel owned or controlled 25 contracts 

in a single shell egg future and was thereby required to file series 503 report 

forms, albeit, during this period Mr. Gimbel failed to file such reports. 

Dates that Respondent Gimbel failed to file a 503 report 

December 5, 1969 

June 23, 1972 

July 6, 1972 

July 10, 1972 

July 11, 1972 

August 7, 1972 

August 8, 1972 

August 9, 1972 

August 14, 1972 
Page 3 

August 15, 1972 

August 16, 1972 

September 1, 1972 

November 17, 1972 

IX 

On the dates listed below respondent Gimbel owned or controlled 25 contracts 

in a single shell egg future and was thereby required to file series 503 report 

forms. On these dates, respondent Gimbel filed such reports but such reports 

were false and inaccurate. 

Dates that Stuart Gimbel filed a false or inaccurate 503 report 

January 14, 1970 

January 15, 1970 

January 16, 1970 

January 23, 1970 

January 26, 1970 

January 28, 1970 

January 29, 1970 

March 17, 1970 

March 18, 1970 

March 19, 1970 

June 9, 1972 

June 14, 1972 

June 15, 1972 

June 16, 1972 

July 18, 1972 

August 10, 1972 

August 11, 1972 

X 

By reason of the facts described in this complaint respondent Gimbel 

willfully violated sections 4a, 4g, 4i and 6(b) of the Act (7 U.S.C. §§6a, 6g, 

6i and 9) and sections 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03 of the 

regulations thereunder (17 CFR §§ 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03). 

Respondent Grow Investments aided and abetted respondent Gimbel in such 

violations by allowing him to attempt to conceal certain of the trades in 

question in the partnership house account and in the Jeffrey Greegoss account, 

which was carried by respondent Grow Investments, and under section 13 of the 

Act (7 U.S.C. §13c) Grow Investments is responsible for such violations as a 

principal. 

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 and 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, fully and completely stating the 

nature of the defense and admitting or denying, specifically and in detail, each 
Page 4 

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. 

The filing of an answer in which all of the material allegations of fact 

contained in this 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 in Chicago, Illinois, at a 

place therein and a 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 Stuart Gimbel as a 

registered floor broker and respondent Grow Investments as a registered 

futures commission merchant, (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 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. 

Done at Washington, D.C. 

May 31, 1974 

[SEE SIGNATURE IN ORIGINAL] 

RICHARD L. FELTNER 

Assistant Secretary 

LOAD-DATE: June 16, 2008 
Page 5