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Commodity Futures Trading Commission 

CEA CASES 

NAME: DAVID PETER BAKAS 

DOCKET NUMBER: 224; 75-5 

DATE: MARCH 27, 1974 

DOCUMENT TYPE: COMPLAINT 

NOTE: LATER BECAME CFTC DOCKET # 75-5 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: David Peter Bakas, Respondent 

CEA Docket No. 224 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent, David Peter Bakas, has 

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

made pursuant thereto. This complaint and notice of hearing is issued stating 

the charges in that respect as follows: 

I 

The respondent, David Peter Bakas, an individual also doing business as Bakas 

Trading Company, Inc., whose business address is 1316 North Dearborn Parkway, 

Chicago, Illinois 60610, was during the period from June 2, 1972 through 

September 25, 1973, a member of the MidAmerica Commodity Exchange, Chicago, 

Illinois. During the period July 6, 1973 through December 31, 1973, respondent 

was registered as a floor broker under the Commodity Exchange Act. The 

MidAmerica Commodity Exchange is now, and was at all times material herein, a 

duly designated contract market under the Commodity Exchange Act. Prior to 

November 22, 1972, the official name of the exchange was the Chicago Open Board 

of Trade. 

II 

From on or about June 1, 1972 through on or about June 14, 1973, respondent 

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

delivery on or subject to the rules of the MidAmerica 

Commodity Exchange, and in connection with such solicitation and acceptance of 

orders, accepted money to margin, guarantee, or secure trades, without having 

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

The approximate dates such funds were received and the amounts so received are 

as follows: 

Customer Date Amount 

Derrill Bakas 3/26/73 $ 500.00

Henry Blenner 4/72 2,000.00

6/72 2,000.00

Lambros Chrysikos unknown 1,000.00

Ronald Crawford 12/16/72 500.00

Sam Cypert 3/31/73 500.00

Alberto Flores 6/1/73 1,000.00

John Flowers 4/25/73 500.00

Edward Fox 11/5/72 500.00

Thomas Fox 9/5/72 1,000.00
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Customer Date Amount 

David Howard 9/2/72 500.00

Sheldon Irgang 5/4/73 500.00

John Larsen 9/1/72 1,000.00

Richard Olson 2/16/73 1,000.00

Alfred Sorenson 9/16/72 500.00

Ron Stawicki 4/26/73 850.00

Bruce Wackelin 4/29/73 600.00

Donald Wurtz 4/23/73 500.00

Chester and Pat Ziebka 2/23/73 500.00

Gary Zimmer 12/4/72 500.00

III 

During the period from on or about June 15, 1972 through on or about 

September 28, 1973, while engaged as futures commission merchant, respondent 

converted to his own use and failed to hold in separate account, the money 

received by him to margin or secure the trades or contracts of his customers, as 

detailed in paragraph II above. In truth and in fact, such funds were used by 

respondent to trade in his personal commodities account and no transactions were 

made for such customers. 

IV 

During the period from on or about June 1, 1972 through on or about September 

28, 1973, respondent knowingly made false and deceptive statements to the 

customers listed in paragraph III above concerning: 

(a) Activity in customers' accounts although no accounts were opened in such 

customers' names. 

(b) Specific trades purportedly made for customers although no trades were in 

fact made for such customers. 

(c) Profits realized from activity in 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 commerce for the fulfillment of such futures contracts. 

VI 

By reason of the facts alleged in this Complaint, the respondent willfully 

violated sections 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, 0.28). 

The respondent 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 the 

material allegations of fact contained in the Complaint are admitted likewise 
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will constitute a waiver of hearing unless a hearing is requested. The 

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

held in Chicago, Illinois, at a place therein and date to be specified later, 

before an Administrative Law Judge designated to conduct such hearing. At such 

hearing, the respondent will have the right to appear and show cause, if any 

there be, why an appropriate order should not be issued in accordance with 

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. 

March 27 1974 

[SEE SIGNATURE IN ORIGINAL] 

CLAYTON YEUTTER 

Assistant Secretary 

LOAD-DATE: August 6, 2008 
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