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Commodity Futures Trading Commission 

CEA CASES 

NAME: JON F. FREEMAN, D/B/A J. F. FREEMAN & COMPANY 

DOCKET NUMBER: 198 

DATE: SEPTEMBER 1, 1972 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Jon F. Freeman, d/b/a J. F. Freeman & Company, Respondent 

CEA Docket No. 198 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent does not now meet the minimum 

financial requirements of the Commodity Exchange Act (7 U.S.C. 1 et seq.) and 

the regulations made pursuant thereto, and that the respondent has violated the 

said Act and regulations, and, therefore, this complaint and notice of hearing 

is issued alleging the following: 

I 

The respondent, Jon F. Freeman, an individual doing business as J. F. Freeman 

& Company with his principal office at 6 Harrison Street, New York, New York 

10013, is now, and was at all times material herein, a registered futures 

commission merchant under the Commodity Exchange Act, 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 such times the respondent was 

subject to the minimum financial requirements set forth in section 1.17 of the 

regulations under the Commodity Exchange Act (17 CFR 1.17). 

II 

The respondent presently fails to meet the minimum financial requirements 

prescribed by section 1.17 of the regulations (17 CFR 1.17) issued by the 

Secretary of Agriculture under the Commodity Exchange Act and during the period 

from July 31 through August 30, 1972, failed to meet such requirements. 

According to the reports of the respondent's financial condition which he filed 

with the Commodity Exchange Authority on August 22, 1972, the respondent, as of 

July 31, 1972, had adjusted working capital amounting to approximately minus $ 

7,000, and a minimum working capital requirement amounting to approximately $ 

27,000, resulting in a working capital deficiency amounting to approximately $ 

34,000. 

III 

By reason of the facts alleged in this complaint, the respondent does not now 

meet the minimum financial requirements under section 4f of the Commodity 

Exchange Act (7 U.S.C. 6f) and section 1.17 of the regulations (17 CFR 1.17), 

and wilfully violated these sections by operating as a futures commission 

merchant while failing to meet such minimum financial requirements. 

WHEREFORE, it is hereby ordered that this complaint and notice of hearing be 

served upon the respondent and this proceeding shall 
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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 New York, New York, 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) suspending or revoking the registration of the respondent as 

futures commission merchant, (2) 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 (3) directing that the respondent shall cease and 

desist from violating the Act and regulations in the manner alleged herein. 

Done at Washington, D. C. 

September 1, 1972 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

LOAD-DATE: June 16, 2008 
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