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Commodity Futures Trading Commission 

CEA CASES 

NAME: ANDCO, INC. AND GLEN H. ANDERSEN 

CITATION: 31 Agric. Dec. 1356 

DOCKET NUMBER: 203 

DATE: NOVEMBER 3, 1972 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 14,844) 

In re ANDCO, INC. and GLEN H. ANDERSEN. CEA Docket No. 203. Decided November 

3, 1972. 

Undersegregation of funds -- Stipulation -- Cease and desist

Where respondents violated the Act and regulations as found herein and have 

filed a stipulation herein, respondents are ordered to cease and desist from 

such violations as stated in the Order herein. 

Darrold A. Dandy, for complainant. 

Respondents pro se. 

Decision by Donald A. Campbell, Judicial Officer

DECISION AND ORDER

PRELIMINARY STATEMENT

This is an administrative proceeding under the Commodity Exchange Act (7 

U.S.C. Chapter 1), instituted by a complaint and notice of hearing issued on 

October 5, 1972. The respondents are charged with violating sections 4d and 4g 

of the Commodity Exchange Act (7 U.S.C. 6d, 6g) and sections 1.20, 1.21, 1.23, 

1.32, and 1.35 of the regulations thereunder (17 CFR 1.20, 1.21, 1.23, 1.32, and 

1.35). 

No hearing has been held in this proceeding. The respondents have filed a 

stipulation under section 0.4(b) of the rules practice (17 CFR 0.4(b)) in which 

they: 

(1) admit the facts hereinafter set forth in paragraphs 1 through 3 of the 

Findings of Fact, 

(2) admit, for the purpose of this proceeding and for such purposes only, the 

facts hereinafter set forth in paragraph 4 of the Finding of Fact, 

(3) waive oral hearing on the allegations in the complaint and the report of 

the referee and 

(4) consent to the entry, without further proceedings, of the order contained 

herein. 

FINDINGS OF FACT

1. Respondent Andco, Inc., an Illinois corporation with its place of business 

at 110 North Franklin Street, Chicago, Illinois, was at all times material 

herein a registered futures commission merchant under the Commodity Exchange Act 

and so engaged in business. 

2. Respondent Glenn H. Andersen, whose business address is the same as that 

of the respondent corporation, is now and was at all times material herein, 
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Chairman of the Board of Directors of respondent Andco, Inc. At all such times 

Glenn H. Andersen had responsibility for the management, direction, and control 

of the corporation. 

3. At all times material herein, respondent Andco, Inc., in the regular 

course of its business as futures commission merchant, carried accounts of 

customers who traded in commodity futures on contract markets subject to the 

provisions of the Commodity Exchange Act and the regulations thereunder. Such 

accounts, the trading therein, and the handling and disposition of funds in 

connection therewith, were subject to the provisions of the Act and regulations. 

At all such times, the respondent Andco, Inc., had to its credit with banks or 

other depositories, money and securities in varying amounts, held in segregated 

accounts and identified as customers' funds, representing deposits of margin by 

and trading profits accruing to such customers. 

4. Examination of the records of the respondent corporation by the Commodity 

Exchange Authority disclosed, as shown in the tabulation below, (1) that on 

January 29, 1971, the respondent corporation was undersegregated by over $ 

910,000.00 and (2) that on January 29, 1971, and April 8, 1971, the daily 

computation and record that was prepared and kept by the respondent to meet the 

requirements of section 1.32 of the regulations under the Commodity Exchange Act 

(17 CFR 1.32) contained errors which resulted in gross misstatements of the 

respondents' segregated condition: 

See original document-page 2 

Respondent's 

Segregation Record For CEA Examination

(Undersecregation) (Undersegregation) 

Date Oversegregation Oversegregation 

January 29, 1971 $ 393,500.82 ($ 910,596.82) 

April 8, 1971 $ 682,248.45 $ 154,851.34 

ORDER

Effective upon the date of service of this order upon the respondents, each 

of them shall cease and desist from (1) failing to treat and deal with 

customers' funds as belonging to such customers as required by section 4d of the 

Commodity Exchange Act (7 U.S.C. 6d); (2) failing to prepare and maintain (a) an 

accurate record as of the close of the market on each business day of the amount 

of money, securities and property which must be in segregated account in order 

to comply with the requirements of section 4d of the Commodity Exchange Act (7 

U.S.C. 6d) and the regulations thereunder, and (b) such other books and records 

relating to dealing in commodity futures in such form and manner and for such 

period as may be required by the Secretary of Agriculture; and (3) causing, 

aiding, counseling, commanding or inducing any person to engage in any act or 

practice from which the respondents are directed to cease and desist by this 

order. A copy of this Decision and Order shall be served on each of the parties 

and on each contract market. 

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