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Commodity Futures Trading Commission 

CEA CASES 

NAME: ULTRADE CORPORATION, OMER D. LABRIE, MELVIN A. ROSS, AND PETER A. THATCHER 

DOCKET NUMBER: 180 

DATE: AUGUST 19, 1971 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Ultrade Corporation, Omer D. LaBrie, Melvin A. Ross, and Peter A. 

Thatcher, Respondents 

CEA Docket No. 180 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondents have violated the Commodity 

Exchange Act (7 U.S.C. 1 et seq.) and the regulations made pursuant thereto, and 

this complaint and notice of hearing is issued stating the charges in that 

respect as follows: 

I 

Respondent Ultrade Corporation is now, and was at all times material herein, 

a corporation organized and existing under the laws of the State of 

Massachusetts. At all such times up until January 1, 1971, the said corporation 

was a registered futures commission merchant under the Commodity Exchange Act, 

and at all such times up until on or about December 8, 1970, was engaged in 

trading in commodities for future delivery for the accounts of customers and 

holding for such customers sums of money, representing deposits of margin by and 

trading profits accruing to such customers. At all times while so engaged, the 

said corporation was subject to the minimum financial requirements specified in 

section 1.17 of the regulations under the Commodity Exchange Act (34 F.R. 599). 

The last known address of the respondent corporation is 850 Boylston Street, 

Chestnut Hill, Massachusetts. 

II 

Respondent Omer D. LaBrie was at all times material herein up to July 8, 

1970, the president of the respondent corporation. Respondent Melvin A. Ross 

was at all times material herein after on or about July 10, 1970, the president 

of the respondent corporation and chairman of its board of directors. 

Respondent Peter A. Thatcher was at all times material herein after August 17, 

1970, the vice-president and general manager of the respondent corporation. In 

such capacities, the individual respondents had responsibility for the 

management, direction and control of the activities of the corporate respondent. 

III 

During the period between June 5 and July 15, 1970, both inclusive, and on 

August 31, 1970, respondent Ultrade Corporation engaged as a registered futures 

commission merchant under the Commodity Exchange Act while failing to meet the 

minimum financial requirements prescribed by section 1.17 of the regulations 

issued by the Secretary of Agriculture under the Act. The respondent 

corporation lacked approximately $ 57,000, $ 51,000, $ 31,000 and $ 16,000, on 

June 5, June 15, June 30 and August 31, 1970, respectively, of having enough 

working capital to meet such minimum financial requirements. 

IV 
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By reason of the facts alleged in this complaint, the respondents wilfully 

violated section 4f of the Commodity Exchange Act (7 U.S.C 6f) and section 1.17 

of the regulations thereunder (34 F.R. 599). 

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, 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 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 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 

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

held at 10:00 a.m., local time, on October 21, 1971, in Boston, Massachusetts, 

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 appropriate order should not be issued 

in accordance with the Commodity Exchange Act, 

(1) 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 

(2) directing that the respondents shall cease and desist from violating the Act 

and regulations in the manner alleged herein. 

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. G. 

August 19, 1971 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

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