Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: LEE B. STERN 

DOCKET NUMBER: STIPULATION 62 

DATE: AUGUST 20, 1962 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Lee B. Stern 

Stipulation of Compliance under the Commodity Exchange Act No 62 

The Secretary of Agriculture has reason to believe that Lee B. Stern has 

violated the provisions of the Commodity Exchange Act (7 U.S.C., Chapter 1) and 

the orders of the Commodity Exchange Commission establishing limits on positions 

and daily trading in rye and soybeans for future delivery. (17 CFR 150.3-150.4) 

No complaint with respect to such violations has been issued and the said Lee 

B. Stern is desirous of disposing of the matter by entering into a stipulation 

of compliance as authorized by section O.4(a) of the rules of practice under the 

Commodity Exchange Act (17 CFR 0.0-0.28). Therefore, the said Lee B. Stern 

stipulates the following facts are true: 

1. Lee B. Stern, an individual whose address is 141 West Jackson Boulevard, 

Chicago 4, Illinois, is now and was at all times mentioned herein a registered 

floor broker under the Commodity Exchange Act and a member of the Board of Trade 

of the City of Chicago. 

2. The transactions herein described were entered into by Lee B. Stern on the 

Board of Trade of the City of Chicago, a duly designated contract market under 

the Commodity Exchange Act. 

3. On July 20, 1962, Lee B. Stern made the following speculative purchase of 

rye futures: 

Futures Bushels 

July 1962 165,000

September 1962 175,000

December 1962 205,000

March 1963 75,000

May 1963 10,000

Total 630,000

4. On July 23, 1962, Lee B. Stern made speculative purchases and sales of 

90,000 and 765,000 bushels, respectively, in the November 1962 soybean future, 

resulting in his holding a net short speculative position of 2,125,000 bushels 

in the November 1962 soybean future. 

The purchases of rye futures by the said Lee B. Stern on July 20, 1962, were 

in excess of the maximum amount of such purchases permitted by the order of the 

Commodity Exchange Commission establishing limits on positions and daily trading 

in rye for future delivery. The sales of soybean futures on July 23, 1962, 

resulted in the said Lee B. Stern holding a position in excess of the maximum 

net short speculative position permitted by the order of the Commodity Exchange 

Commission establishing limits on positions and daily trading in soybeans for 

future delivery. Therefore, such trading and position were in violation of such 

orders and of section 4a of the Commodity Exchange Act (7 U.S.C. 6a, 17 CFR 

150.3-150.4). Previous transactions made and 
Page 2 

positions held by the said Lee B. Stern in excess of limits set by the Commodity 

Exchange Commission were called to his attention by the Act Administrator in a 

letter dated March 16, 1961. 

The said Lee B. Stern agrees to desist from such acts in the future. He 

further understands and agrees that this stipulation is admissible as evidence 

of such acts in any future proceeding based upon acts or practices in addition 

to those referred to herein which may be brought by the Secretary of Agriculture 

against him under the provisions of the said act. He also understands that it 

is the practice of the Commodity Exchange Authority to make stipulations of 

compliance a matter of public record. 

Done at Chicago, Illinois, this 20th day of August 1962. 

/s/ Lee B. Stern 

Lee B. Stern 

Witnessed by: 

/s/ Robert M. Ollquist 

/s/ Roger E. Harper 

LOAD-DATE: June 16, 2008 
Page 3