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Commodity Futures Trading Commission 

CEA CASES 

NAME: STUART GIMBEL and GROW INVESTMENTS 

CITATION: 34 Agric. Dec. 60 

DOCKET NUMBER: 228 

DATE: JANUARY 8, 1975 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 16,212) 

In re STUART GIMBEL and GROW INVESTMENTS. CEA Docket No. 228. Decided January 

8, 1975. 

Floor broker -- excessive speculative trading in shell egg futures -- 

Reporting requirements -- failure to comply with -- Attempting to conceal 

certain trades -- Reports -- false and incorrect -- Sanctions

The stipulation of respondents has been accepted and the order herein is 

issued against them for wilful violations of the Act and regulations in 

exceeding the speculative daily trading limits, attempting to conceal certain 

trades, filing of false reports and failing to comply with the reporting 

requirements of the Act. Respondents are ordered to cease and desist from such 

violations, and the registration of respondent Stuart Gimbel as a floor broker 

under the Act is revoked. Said respondent is denied trading privileges on all 

contract markets for a period of one year as set forth in the order herein. And 

the registration of respondent Grow Investments as a commission merchant under 

the Act is suspended for a period of six (6) months. This respondent is denied 

trading privileges on all contract markets during the period of such suspension 

as set forth in the order herein. 

Herbert R. Bader, for complainant. 

Harry Fortes, Chicago, Ill., for respondents. 

Decision by John A. Campbell, Administrative Law Judge.

DECISION AND ORDER

This is an administrative proceeding under the Commodity Exchange Act, "the 

Act" (7 U.S.C. § 1 et seq.), instituted by a complaint and notice of hearing, 

alleging that the respondent Stuart Gimbel, a registered floor broker under the 

Act and a member of the Chicago Mercantile Exchange, violated both the 

speculative daily trading limit in shell egg futures and the 

reporting requirement under the Act. Such acts were alleged to have been wilful 

and in violation of sections 4a, 4g, 4i and 6(b) of the Act (7 U.S.C. §§ 6a, 6g, 

6i and 9) and sections 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03 of the 

regulations thereunder (17 CFR §§ 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03). 

Respondent Grow Investments was alleged to have aided and abetted respondent 

Gimbel in such violations by allowing him to attempt to conceal certain trades 

in question in the partnership house account and in the Jeffrey Greengoss 

account, which was carried by Grow Investments and under section 13 of the Act 

(7 U.S.C. § 13c). Grow Investments is responsible for such violations as a 

principal. 

Prior to hearing the respondents agreed to a stipulation under section 0.4(b) 

of the Rules of Practice (17 CFR 0.4(b)) in which they (1) admit the facts 

hereunder as set forth in paragraphs 1 through 10 of the findings of fact, (2) 
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waive oral hearing on the charges in the complaint issued herein and consent to 

the entry, without further proceedings, of a Decision and Order containing (1) 

the facts admitted in such stipulation as the findings of fact, (2) conclusions 

of law based on such findings, and (3) the Order contained herein. 

FINDINGS OF FACT

(1) Respondent Stuart Gimbel, an individual whose business address is 222 S. 

Riverside Plaza, Chicago, Illinois 60606, is now and has been since December 29, 

1969, a registered floor broker under the Commodity Exchange Act ("the Act"), 

and a member of the Chicago Mercantile Exchange; 

(2) Respondent Grow Investments, a partnership whose address is the same as 

that of the individual respondent, is now and has been since July 29, 1970, a 

registered futures commission merchant under the Act and is now and has been 

since January 4, 1970, a clearing member of the Chicago Mercantile Exchange. 

Respondent Gimbel is now and was at all times material herein a partner of 

respondent Grow Investments; 

(3) At all times material herein the Chicago Mercantile Exchange was a duly 

designated contract market for shell egg futures under the Act; 

(4) At all times material herein the speculative daily trading limit in shell 

ege futures as fixed by the Commodity Exchange Commission was one hundred and 

fifty (150) carlots in any one future or all futures combined; 

(5) On December 3, 1969 and December 5, 1969 respondent Gimbel, trading for 

his personal accounts at Woodstock, Inc., and Time Trading Company, made 

speculative purchases of 163 and 161 carlots and speculative sales of 141 and 

144 carlots, respectively, in shell egg futures, in all futures combined, on or 

subject to the rules of the Chicago Mercantile Exchange, as follows: 

Contracts Contracts Total 

placed into placed into contracts 

Stuart Gimbel Stuart Gimbel placed into 

Date account at account at the Gimbel 

Woodstock Inc. Time Trading accounts 

Company Bought Sold Bought Sold Bought Sold

December 3, 1969 18 -- 145 141 163 141

December 5, 1969 2 1 159 143 161 144

(6) During the periods January 13, 1970 through January 30, 1970 and March 

17, 1970 through March 19, 1970, respondent Gimbel, placing his trades into his 

account (account number 00060) and into the account of Jeffrey Greengoss, then a 

partner of respondent Grow Investments, (account number 00080), at Grow 

Investments, exceeded the speculative daily trading limit in shell egg futures 

on or subject to the rules of the Chicago Mercantile Exchange, as follows: 

ALL FUTURES COMBINED 

Contracts Contracts 

placed into placed into the Stuart the Jeffrey Total 

Gimbel Greengoss contracts 

Date (account No. account 0060) (account No. 

00080) Bought Sold Bought Sold Bought Sold

January 13, 1970 151 113 93 92 244 205

January 14, 1970 155 112 99 95 254 207

January 15, 1970 137 140 158 158 295 298

January 16, 1970 87 148 121 121 208 269

January 19, 1970 164 139 93 93 257 232

January 20, 1970 140 142 108 90 248 232

January 21, 1970 127 125 77 72 204 197

January 22, 1970 134 144 141 142 275 286

January 23, 1970 162 140 23 34 185 174
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Contracts Contracts 

placed into placed into 

the Stuart the Jeffrey Total 

 Gimbel Greengoss contracts 

Date (account No. account 

 0060) (account No. 00080) 

 Bought Sold Bought Sold Bought Sold

January 26, 1970 51 140 124 124 175 264

January 28, 1970 138 134 97 90 235 224

January 30, 1970 142 130 37 37 179 167

March 17, 1970 141 165 147 146 288 311

March 18, 1970 112 130 90 132 202 262

March 19, 1970 72 94 75 75 147 169 

See original document-page 3 

Contracts Contracts 

placed into placed into the Stuart the Jeffrey Total 

Gimbel Greengoss contracts 

Date (account No. account 0060) (account No. 00080) 

Bought Sold Bought Sold Bought Sold

FEBRUARY, 1970 FUTURE 

January 15, 1970 116 116 86 86 202 202

January 16, 1970 48 88 111 111 159 199

January 19, 1970 96 93 73 73 169 166

January 20, 1970 96 92 64 64 160 156

January 22, 1970 35 35 125 113 160 148

MARCH, 1970 FUTURE 

March 17, 1970 139 143 146 146 285 289

March 18, 1970 100 101 66 87 166 188

(7) During the period June 6, 1972 through November 17, 1972, respondent 

Gimbel, exceeded the speculative daily trading limits in all futures combined, 

in shell egg futures, on or subject to the rules of the Chicago Mercantile 

Exchange, as follows: 

See original document-page 4 

Contracts Contracts Contracts placed into placed into placed into Total 

Date the Stuart the Stuart the Grow contracts 

Gimbel Gimbel Investments account account at house 

at Grow King and account 

Investments King (account (account (account No. 100) 

No. 00060) No. 40010) 

Bought Sold Bought Sold Bought Sold Bought Sold 

June 6, 1972 152 141 - - - - 152 141

June 8, 1972 144 154 - - - 15 144 169

June 22, 1972 154 140 - - - - 154 140

July 11, 1972 150 120 - - 10 - 160 120

July 14, 1972 150 146 - - 5 2 155 148

July 17, 1972 141 136 13 - - 7 154 143

July 20, 1972 142 145 13 - - - 155 145

July 28, 1972 150 148 - 13 - - 150 161

July 31, 1972 153 144 13 - - - 166 144

August 1, 1972 141 147 - - 10 - 151 147

August 3, 1972 148 150 - - - 10 148 160

August 4, 1972 150 153 - - - - 150 153

August 8, 1972 154 143 - - 10 10 164 153
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Contracts Contracts Contracts 

placed into placed into placed into Total 

Date the Stuart the Stuart the Grow contracts 

Gimbel Gimbel Investments 

account account at house 

at Grow King and account 

Investments King (account 

(account (account No. 100) 

No. 00060) No. 40010) 

Bought Sold Bought Sold Bought Sold Bought Sold 

August 17, 1972 141 146 - 13 - - 141 159

August 24, 1972 150 151 - - - - 150 151

August 28, 1972 145 157 - - 15 20 160 177

August 31, 1972 149 143 - - - 10 149 153

Sept. 7, 1972 136 149 - - - 17 136 166

Sept. 8, 1972 148 142 - 5 12 10 160 157

Sept. 12, 1972 146 152 - - 10 - 156 152

Sept. 15, 1972 166 162 - - - - 166 162

Sept. 19, 1972 152 137 - - - - 152 137

Sept. 20, 1972 127 156 - - - - 127 156

Sept. 21, 1972 151 152 - - - - 151 152

Sept. 22, 1972 153 144 - - - - 153 144

Oct. 19, 1972 153 148 - - - 5 153 153 

See original document-page 5 

Contracts Contracts Contracts 

placed into placed into placed into Total 

Date the Stuart the Stuart the Grow contracts 

Gimbel Gimbel Investments 

account account at house 

at Grow King account Investments and King (account 

(account (account No. 100) 

No. 00060) No. 40010) Bought Sold Bought Sold Bought Sold Bought Sold 

Oct. 23, 1972 139 149 - - 11 10 150 159

Oct. 24, 1972 146 139 - - 10 11 156 150

Oct. 25, 1972 132 138 - - 15 15 147 153

Oct. 27, 1972 139 142 - - 15 15 154 157

Nov. 17, 1972 151 147 - 10 - - 151 157 

(8) On the dates listed below respondent Gimbel owned or controlled 25 

contracts in a single shell egg future and was thereby required to file series 

503 report forms, albeit, during this period Mr. Gimbel failed to file such 

reports. 

Dates That Respondent Gimbel Failed

To File a 503 Report

December 5, 1969 

June 23, 1972 

July 6, 1972 

July 10, 1972 

July 11, 1972 

August 7, 1972 

August 8, 1972 

August 9, 1972 
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August 14, 1972 

August 15, 1972 

August 16, 1972 

September 1, 1972 

November 17, 1972 

(9) On the dates listed below respondent Gimbel owned or controlled 25 

contracts in a single shell egg future and was thereby required to file series 

503 report forms. On these dates respondent Gimbel filed such reports but such 

reports were false and inaccurate. 

Dates That Stuart Gimbel Filed A

False or Inaccurate 503 Report

January 14, 1970 

January 15, 1970 

January 16, 1970 

January 23, 1970 

January 26, 1970 

January 28, 1970 

January 29, 1970 

March 17, 1970 

March 18, 1970 

March 19, 1970 

June 9, 1972 

June 14, 1972 

June 15, 1972 

June 16, 1972 

July 18, 1972 

August 10, 1972 

August 11, 1972 

(10) At all times material herein, respondent Grow Investments, aided and 

abetted respondent Gimbel in such violations, as alleged above, by allowing him 

to attempt to 

conceal certain of the trades in question in the partnership house account and 

in the Jeffrey Greengoss account, which was carried by respondent Grow 

Investments. 

CONCLUSIONS 

By reason of the facts described above respondent Gimbel wilfully violated 

sections 4a, 4g, 4i and 6(b) of the Act (7 U.S.C. §§ 6a, 6g, 6i and 9) and 

sections 15.01, 15.02, 15.08, 18.00, 18.01 and 18.03 of the regulations 

thereunder (17 CFR §§ 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03) and 

respondent Grow Investments by aiding and abetting respondent Gimbel in such 

violations is responsible for such violations as a principal under section 13 of 

the Act (7 U.S.C. § 13c). 

ORDER
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1. Effective upon the date of service of this order the respondents, Stuart 

Gimbel and Grow Investments, shall cease and desist from (1) exceeding the 

speculative trading or position limits fixed by the Orders of the Commodity 

Exchange Commission, (2) wilfully making any false or misleading statements of a 

material fact in any report filed under the Commodity Exchange Act, and (3) 

failing to file any report which is due under the Commodity Exchange Act. 

2. Effective upon the twentieth day after the date of entry of this order: 

(a) The registration of respondent Stuart Gimbel as floor broker is hereby 

revoked, and 

(b) Respondent Stuart Gimbel is prohibited from trading on or subject to the 

rules of any contract market for a period of one year, and all contract markets 

shall refuse all trading privileges to respondent Gimbel during this period. 

Such prohibition and refusal shall apply to all such trading done and positions 

held directly by the respondent, Stuart Gimbel, either for his own account or as 

the agent or representative of any other person or firm, and also to all such 

trading done through, and to all positions held indirectly by persons or firms 

owned wholly or in substantial amount by said respondent, or in any way subject 

to his discretion or control, wholly or substantially. 

3. Effective upon the twentieth day after the date of entry of this order: 

(a) The registration of respondent Grow Investments as 

futures commission merchant is hereby suspended for a period of six (6) months, 

and 

(b) Respondent Grow Investments is prohibited from trading on or subject to 

the rules of any contract market for a period of six (6) months, and all 

contract markets shall refuse all trading privileges to respondent Grow 

Investments during this period. Such prohibition and refusal shall apply to all 

such trading done and positions held directly by the respondent Grow 

Investments, either for its account or as the agent or representative of any 

other person or firm, and also to all such trading done through, and to all 

positions held indirectly by persons or firms owned wholly or in substantial 

amount by said respondent, or in any way subject to its discretion or control, 

wholly or substantially. 

4. The prohibition from trading and suspension of registration set forth in 

paragraph 3 above shall not become effective unless respondent Grow Investments 

shall have violated the Commodity Exchange Act or the regulations issued 

thereunder within one year from the date of issuance of this Order by reason of 

facts other than those constituting the basis for the charges brought in this 

proceeding. In the event such subsequent violation should be found to have 

occurred after complaint and notice of hearing in accordance with the Act and 

the regulations thereunder a supplemental Order may be issued in this 

proceeding, without further notice, making effective the prohibition and 

suspension set forth in paragraph 3 above. Such Order shall be in addition to 

any sanction which may be imposed as a result of such subsequent violation. 

A copy of this Decision and Order shall be served on each of the respondents 

and on each contract market. 

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