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Commodity Futures Trading Commission 

CEA CASES 

NAME: PROFESSIONAL COMMODITY SERVICE, INC., AND THEODORE W. LORD, SR. 

DOCKET NUMBER: 193 

DATE: JULY 24, 1972 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Professional Commodity Service, Inc., and Theodore W. Lord, Sr., 

Respondents 

CEA Docket No. 193 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that respondent Professional Commodity Service, 

Inc., has not established that it meets the financial requirements of the 

Commodity Exchange Act (7 U.S.C., Chapter I) and the regulations thereunder (17 

CFR, Chapter I), that it does not now meet such requirements, that both 

respondents have wilfully violated the Act, and that under the provisions of 

section 8a of the Act (7 U.S.C. 12a) the respondent firm's application for 

registration as futures commission merchant under the Act should be denied. 

Therefore, this complaint and notice of hearing is issued alleging the 

following: 

I 

Respondent Professional Commodity Service, Inc., a Colorado corporation with 

offices at 1776 South Jackson, Denver, Colorado 80210 has applied for 

registration as futures commission merchant under the Commodity Exchange Act, 

but registration has not been granted. 

II 

Respondent Theodore W. Lord, Sr., whose business address is the same as that 

of the corporate respondent, is now, and was at all times material herein, 

president of the corporation. At all such times, respondent Lord had 

responsibility for the management of the corporate respondent. 

III 

The respondent corporation has not established that it meets the minimum 

financial requirements under section 4f of the Commodity Exchange Act (7 U.S.C. 

6f ) and section 1.17 of the regulations issued pursuant to the Act (17 CFR 

1.17), and, in fact, the respondent corporation does not now meet such minimum 

financial requirements. The respondent corporation's current liabilities 

exceeded its current assets by approximately $ 9,000.00 on November 17, 1971, 

and it lacked approximately $ 5,000.00 on July 23, 1971, $ 19,000.00 on November 

17, 1971, $ 2,800.00 on March 31, 1972, and $ 5,000.00 on April 10, 1972, of 

having enough working capital to meet such minimum financial requirements. 

IV 

The respondents, in connection with the respondent corporation's application 

for registration as futures commission merchant, filed with the Commodity 

Exchange Authority a financial report on Form 1-FR, which purported to show the 

firm's financial condition as of July 23, 1971. 
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The respondents wilfully omitted to state in such report material facts required 

to be stated therein. Such omitted material facts were as follows: 

a. On July 23, 1971, the respondents drew a check to the order of respondent 

Theodore W. Lord, Sr., for $ 15,000.00 on the respondent firm's general funds 

bank account, which check was subsequently negotiated by respondent Lord. 

b. On July 23, 1971, the respondent corporation obtained a loan from the 

Security National Bank, Denver, Colorado, in the amount of $ 5,000.00 which, by 

the terms of the promissory note signed by the respondent corporation, was due 

and payable on October 21, 1971 with interest at the rate of 7% per annum. 

V 

By reason of the facts alleged in this complaint, (1) the respondent 

corporation has not established that it meets 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), (2) the respondent corporation does not now meet 

such minimum financial requirements, (3) the respondents wilfully omitted to 

state in a report filed with the Commodity Exchange Authority a material fact 

required to be stated therein, in violation of section 6(b) of the Act (7 U.S.C. 

9), (4) the respondent corporation is unfit to engage in the business of futures 

commission merchant, and 

(5) the respondent corporation's application for registration as futures 

commission merchant should be denied under the provisions of section 8a of the 

Act (7 U.S.C. 12a). 

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 four 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 August 24, 1972, in Denver, Colorado, 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) refusing to register the respondent corporation as 

futures commission merchant, (2) 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 (3) 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. C. 
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July 24, 1972. 

[SEE SIGNATURE IN ORIGINAL] 

Philip C. Olsson 

Acting Assistant Secretary 

LOAD-DATE: June 16, 2008 
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