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Commodity Futures Trading Commission 

CEA CASES 

NAME: M. J. KING, INC., AND MAX J. KING 

DOCKET NUMBER: 136 

DATE: APRIL 12, 1966 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: M. J. King, Inc., and Max J. King, Respondents 

CEA Docket No. 136 

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

Act 

There is reason to believe that the respondents, M. J. King, Inc., and Max J. 

King, have violated the Commodity Exchange Act (7 U.S.C. 1 et seq.), and the 

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

provisions of section 6(b) of the said act (7 U.S.C. 9), this complaint and 

notice of hearing is issued alleging as follows: 

I 

Respondent M. J. King, Inc., a New York corporation with its principal office 

and place of business at 171 Duane Street, New York, New York 10013, is now, and 

was at all times material herein, except during the period between December 31, 

1965, and January 25, 1966, a registered futures commission merchant under the 

Commodity Exchange Act. At all times material herein, the respondent 

corporation had membership privileges on the New York Mercantile Exchange, a 

duly designated contract market under the Commodity Exchange Act. 

II 

Respondent Max J. King, an individual, whose business address is 171 Duane 

Street, New York, New York 10013, is now, and was at 

all times material herein, president, manager and a principal stockholder of the 

respondent corporation and a member of the New York Mercantile Exchange. 

Respondent Max J. King is now registered as a floor broker under the Commodity 

Exchange Act. 

III 

At all times material herein, the operations and transactions of the 

respondent corporation were ordered and directed by, or carried out under the 

supervision and control of, respondent Max J. King. At all such times, the 

respondents were aware of their obligations under the Commodity Exchange Act and 

the regulations with respect to record keeping and registration requirements. 

IV 

During the period between July 28, 1965, and January 25, 1966, the respondent 

corporation, acting in its capacity as a futures commission merchant, carried 

accounts for customers who traded in commodity futures subject to the provisions 

of the Commodity Exchange Act and regulations. During the same period, the 

respondent corporation did not prepare and maintain a daily record of the amount 

of customers' money required to be held in segregated account, nor prepare and 
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maintain a monthly point balance which brought to the official closing price all 

open trades in each customer's account. The records which were prepared and 

maintained by the respondent corporation during the said period were incomplete 

and inaccurate to 

an extent which made it impossible to determine whether the funds held by the 

respondent corporation for customers were, in fact, sufficient to pay all 

credits and equities due to customers. 

V 

During the period between December 31, 1965, and January 25, 1966, the 

respondent corporation acted as a futures commission merchant in soliciting and 

accepting orders for the purchase and for the sale of commodity futures subject 

to the Commodity Exchange Act, without being registered with the Secretary of 

Agriculture as a futures commission merchant under the Commodity Exchange Act. 

VI 

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

and willfully violated sections 4d and 4g of the Commodity Exchange Act (7 

U.S.C. 6d, 6g), and sections 1.7, 1.32, 1.34, and 1.35 of the regulations issued 

thereunder (17 CFR 1.7, 1.32, 1.34, 1.35). 

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

served upon the said respondents. 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 five 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. 

The respondents are hereby notified that unless hearing is waived, either 

expressly or by failure to file an answer, or by filing an answer in which all 

of the material allegations of fact contained in the complaint are admitted and 

a hearing is not requested, a hearing will be held at 10:00 a.m., local time, on 

the 25th day of May 1966, in New York, New York, 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 Max J. King as floor broker, suspending or revoking 

the registration of M. J. King, Inc., as futures commission merchant, and 

directing that all contract markets refuse all trading privileges to each 

respondent for such period of time as may be determined. 

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. 

April 12, 1966 

[SEE SIGNATURE IN ORIGINAL] 

Assistant Secretary 

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