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Commodity Futures Trading Commission 

CEA CASES 

NAME: JOHN T. LYONS, JOSEPH H. OWENS, AND EDWARD A. ARNOLD 

DOCKET NUMBER: 143 

DATE: DECEMBER 20, 1966 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: John T. Lyons, Joseph H. Owens, and Edward A. Arnold, Respondents 

CEA Docket No.143 

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

Act 

There is reason to believe that the respondents named herein 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 Act (7 U.S.C. 9), this complaint and notice of hearing is 

issued stating the charges in that respect as follows: 

I 

Respondent John T. Lyons, an individual whose address is 12820 South Monitor 

Avenue, Palos Heights, Illinois, is now and was at all times material herein a 

registered floor broker under the Act and a member of the Chicago Board of 

Trade. 

II 

Respondent Joseph H. Owens, an individual whose address is 1169 Board of 

Trade Building, Chicago, Illinois, is now and was at all times material herein a 

member of the Chicago Board of Trade. 

III 

Respondent Edward A. Arnold, an individual whose address is 12531 South 68th 

Court, Palos Heights, Illinois, is now and was at all times material herein a 

registered floor broker under the Act and a member of the Chicago Board of 

Trade. 

IV 

The Chicago Board of Trade is now and was at all times material herein a duly 

designated contract market under the Commodity Exchange Act. The transactions 

in wheat and soybean futures referred to in this complaint were entered into on 

or subject to the rules of the Chicago Board of Trade. In each such 

transaction, each respondent who participated therein acted as floor trader for 

his own account. At all times material herein wheat and soybean futures on the 

Chicago Board of Trade were traded in job lot units of 1,000 bushels and in 

round lot units of 5,000 bushels. 

V 

The respondents, during the period from November 24, 1965, through March 9, 

1966, 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 respondents acted pursuant to, and in 

accordance with, an understanding or arrangement that they would purchase from, 
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and sell to, each other the same quantity of the same future at or about the 

same price. 

See original document-page 2 

Quantity Price 

Commodity Respondent (In Thousands (Cents per Respondent

Date and Future Buying Unit of Bushels) Bushel) Selling 

11-24-65 March Wheat Owens Job 150 165-5/8 Lyons 

11-24-65 March Wheat Lyons Round 150 165-5/8 Owens 

 

2-14-66 March Wheat Lyons Job 150 167 Owens 

2-14-66 March Wheat Owens Round 150 167 Lyons 

 

9-7-65 July Soybeans Owens Job 150 259 Lyons 

9-7-65 July Soybeans Lyons Round 150 259 Owens 

11-15-65 July Soybeans Lyons Job 150 264 Arnold 

11-15-65 July Soybeans Arnold Job 150 263-7/8 Lyons 

11-15-65 July Soybeans Owens Round 150 264 Arnold 

11-15-65 July Soybeans Arnold Round 150 264 Owens 

 

12-2-65 July Soybeans Owens Round 150 270 Arnold 

12-2-65 July Soybeans Arnold Round 150 270 Owens 12-3-65 July Soybeans Lyons Job 150 269-1/2 Arnold 

12-3-65 July Soybeans Arnold Job 150 269-1/2 Lyons 

 3-9-66 July Soybeans Lyons Job 150 286 Owens 

3-9-66 July Soybeans Owens Round 150 286 Lyons 

 

VI 

The transactions in wheat and soybean futures referred to in paragraph V 

hereof, were capable of being used for (1) hedging a transaction in interstate 

commerce in wheat or soybeans, respectively, or the products or by-products 

thereof, or (2) determining the price basis of a transaction in interstate 

commerce in wheat or soybeans, respectively, or (3) delivering wheat or 

soybeans, respectively, sold, shipped, or received in interstate commerce. 

VII 

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, as required by 

section 1.38 of the regulations (17 CFR 1.38), and in wilful violation thereof. 

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 six 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 
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respondents are hereby notified that unless hearing is waived, a hearing will be 

held at 10:00 a.m., local time, on February 21, 1967, 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 order should not be made suspending or 

revoking the registrations of respondents John T. Lyons and Edward A. Arnold as 

floor brokers, 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 each of 

the said respondents at least twenty (20) days prior to the date set for 

hearing. 

Done at Washington, D. C. 

December 20, 1966 

[SEE SIGNATURE IN ORIGINAL] 

Assistant Secretary 

LOAD-DATE: June 12, 2008 
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