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Commodity Futures Trading Commission 

CEA CASES 

NAME: PATRICK C. DONOVAN 

DOCKET NUMBER: 204 

DATE: DECEMBER 1, 1972 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Patrick C. Donovan, Respondent 

CEA Docket No. 204 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent has violated the Commodity 

Exchange Act, as amended (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 

The respondent, Patrick C. Donovan, is an individual who at all times 

material herein did business as United Commodity Traders. Throughout 1969, the 

respondent was a registered futures commission merchant under the Commodity 

Exchange Act, but is no longer a registrant under the Act. The respondent's 

last known address is 175 Glen Garry Avenue, Town of Mt. Royal, Montreal 304, 

Quebec, Canada. 

II 

While engaged as futures commission merchant, the respondent received money 

from his customers to margin their trades in commodities for future delivery, 

and subsequent thereto converted portions of such funds to the respondent's own 

use, as follows: 

See original document-page 1 

Date Amount Amount 

Received Customer Received Converted 

(1969) Robert M. March 12 Lansford $ 1,000.00 $ 359.00 

Fred K. September 23 Werhane $ 10,000.00 $ 6,987.00 

February Merritt and June Wassom $ 15,000.00 $ 1,789.55 

Leonard 

Mueller and February 20 Wayne Mitchell $ 1,500.00 $ 258.30 

III 

The trades in commodities for future delivery referred to above could have 

been used for (a) hedging transactions 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 such commodities 

sold, shipped or received in interstate commerce for the fulfillment thereof. 

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

violated sections 4b, 4d and 9 of the Commodity Exchange Act, as amended (7 

U.S.C. 6b, 6d and 13), and section 1.20 of the regulations thereunder. 

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 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 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 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 a referee 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 

the 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. December 1, 1972. 

[SEE SIGNATURE IN ORIGINAL] 

Philip C. Olsson 

Deputy Assistant 

Secretary 

LOAD-DATE: June 16, 2008 
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