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Commodity Futures Trading Commission 

CEA CASES 

NAME: GOFFE & CARKENER, INC., A. VINCENT BLACKFORD, AND DWIGHT H. WILLIAMS 

DOCKET NUMBER: 188 

DATE: DECEMBER 17, 1971 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Goffe & Carkener, Inc., A. Vincent Blackford, and Dwight H. Williams, 

Respondents 

CEA Docket No. 188 

Complaint and Notice of Hearing 

There is reason to believe that the respondents have violated the Commodity 

Exchange Act (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 

Respondent Goffe & Carkener, Inc., a corporation organized and existing under 

the laws of the State of Missouri, with offices at 4800 Main Street, Kansas 

City, Missouri 64112, is now, and was at all times material herein, a registered 

futures commission merchant under the Commodity Exchange Act. 

II 

Respondents A. Vincent Blackford and Dwight H. Williams, individuals whose 

business address is the same as that of the corporate respondent, are now, and 

were at all times material herein, president and secretary-treasurer, 

respectively, of the corporate respondent and responsible for the management, 

direction and control of the respondent corporation. 

III 

(a) At all times material herein, the respondent corporation, in the regular 

course of its business, carried accounts of customers who were trading in 

commodities for future delivery covered by the Commodity Exchange Act. Such 

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

connection therewith, were subject to the provisions of the Commodity Exchange 

Act and the rules and regulations issued thereunder. At all such times, the 

respondent corporation held in segregated accounts in banks, or other 

depositories, money and securities in varying amounts, which belonged to such 

customers and which the respondent corporation had received from such customers 

to margin and secure their trades and contracts. 

(b) On July 12, 1971, the respondent corporation obligated certain of the 

aforesaid securities to the Mid-Continent National Bank of Kansas City, to 

secure a loan of $ 100,000.00 made to the respondent corporation. At the time 

the respondent corporation so used such securities, the respondent corporation 

had made no loan of its own funds to its customers on such securities, and had 

entered into no specific written agreement with its customers authorizing such 

use. 

IV 
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The respondents submitted to the Commodity Exchange Authority a financial 

report which purported to show the required financial 

information as of the opening of business on July 1, 1971. The respondents 

willfully made material false statements in such report, which purported to 

represent the financial condition of the respondent corporation as of the 

opening of business on July 1, 1971, by stating: 

(a) On line 2 of the statement of liabilities that the respondent corporation 

had money borrowed, secured by commodity customers' collateral, of $ 100,000, 

when, in fact, such assets were not obtained until July 12, 1971. 

(b) On line 17 of the statement of assets that the respondent corporation had 

investments in and advances and loans to business affiliates of $ 148,930.13, 

when, in fact, such assets were not in excess of $ 50,000.00. 

(c) On line 2 of the statement of assets that the respondent corporation had 

general funds cash in banks and on hand of $ 72,736.09, when, in fact, such 

assets were not in excess of $ 48,000.00. 

(d) On line 10 of the statement of assets that the respondent corporation had 

other secured receivables due within 12 months of $ 111,260.00, when, in fact, 

the respondent corporation had no such other secured receivables. 

V 

By reason of the facts alleged in this complaint, the respondents willfully 

violated sections 4d and 6(b) of the Commodity Exchange 

Act (7 U.S.C. 6d and 9) and sections 1.20 and 1.30 of the regulations thereunder 

(17 CFR 1.20 and 1.30). 

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 February 16, 1972, in Kansas City, Missouri, 

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) suspending or revoking the registration of 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. 
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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. 

December 17, 1971. 

[SEE SIGNATURE IN ORIGINAL] 

J. Phil Campbell 

Under Secretary 

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