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Commodity Futures Trading Commission 

CEA CASES 

NAME: EUGENE T. MUELLER, ROBERT J. MURPHY, AND JAMES W. KOZINSKI 

CITATION: 30 Agric. Dec. 1423 

DOCKET NUMBER: 183 

DATE: OCTOBER 14, 1971 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 14,212) 

In re EUGENE T. MUELLER, ROBERT J. MURPHY, and JAMES W. KOZINSKI. CEA Docket 

No. 183. Decided October 14, 1971. 

Wash sales -- 10-day suspension of registrations -- Consent order

Respondents' activities involving "wash sales" and transactions that are not 

open and competitive are violations of the act for which respondents are ordered 

to cease and desist from such violations and are suspended as registrants under 

the act for 10 days and are denied all trading privileges on the contract 

markets for a like period. 

Earl L. Saunders for Commodity Exchange Authority. 

Respondents pro se. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

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

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

September 2, 1971. The respondents are charged with violating section 4c of the 

Act (7 U.S.C. 6c) and section 1.38 of the regulations thereunder (17 CFR 1.38). 

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

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

which they admit the facts hereinafter set forth in paragraphs one through three 

of the Findings of Fact, (2) admit, for the purposes of this proceeding and for 

such purposes only, the facts hereinafter set forth in paragraphs four and five 

of the Finding of Fact, (3) waive the report of the 

Hearing Examiner, and (4) consent to the entry of the order contained herein. 

FINDINGS OF FACT

1. The respondents, Eugene T. Mueller, Robert J. Murphy and James W. 

Kozinski, are now, and were at all times material herein, registered floor 

brokers under the Commodity Exchange Act and members of the Chicago Mercantile 

Exchange, hereinafter referred to as the exchange. 

2. The exchange is now, and was at all times material herein, a duly 

designated contract market under the Commodity Exchange Act. 

3. The transactions referred to herein relate to the purchase and sale of 

pork belly futures contracts on the exchange. Such contracts could have been 

used for hedging transactions in interstate commerce in pork bellies or the 

products or by-products thereof, or for determining the price basis of 

transactions in interstate commerce in pork bellies, or for delivering pork 

bellies sold, shipped, or received in interstate commerce. 
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4. Respondents Mueller and Kozinski, on December 30, 1968, entered into the 

transactions specified in the tabulation below, which transactions were wash 

sales or were of the character of wash sales. In entering into the said 

transactions the said respondents acted pursuant to, and in accordance with, an 

understanding or arrangement that reciprocal and offsetting purchases and sales 

would be made at little or no price advantage or disadvantage to the said 

respondents. 

(1969) Respondent Quantity Price (Cents Respondent 

Future Buying (No. of contracts) per pound) Selling 

February Mueller 50 32.00 Kozinski 

March Kozinski 50 31.92 1/2 Mueller 

February Kozinski 50 32.62 1/2 Mueller 

March Mueller 50 32.55 Kozinski 

5. Respondents Mueller and Murphy, on December 30, 1968, December 31, 1968 

and January 2, 1969, entered into the transactions specified in the tabulation 

below, which transactions were wash sales or were of the character of wash 

sales. In entering into the said transactions the said respondents acted 

pursuant to, and in accordance with, an understanding or arrangement that 

reciprocal and offsetting purchases and sales would be made at little or no 

price advantage or disadvantage to the said respondents. 

See original document-page 2 

Quantity 

(1969) Respondent (No. of Price(Cents Respondent 

Date Future Buying contracts) per pound) Selling 

12/30/68 February Mueller 50 32.02 1/2 Murphy

12/30/68 March Murphy 50 31.92 1/2 Mueller

1/2/68 February Murphy 50 32.00 Mueller

1/2/69 March Mueller 50 31.92 1/2 Murphy

12/31/68 March Murphy 100 32.52 1/2 Mueller

12/31/68 August Mueller 100 32.05 Murphy

12/31/68 March Mueller 100 32.52 1/2 Murphy

12/31/68 August Murphy 100 32.05 Mueller

CONCLUSIONS

By reason of the facts set forth in the Findings of Fact, it is concluded 

that, as charged in the complaint, the respondents: (1) entered into 

transactions which were, or were of the character of, wash sales or fictitious 

sales, in wilful violation of section 4c of the Commodity Exchange Act (7 U.S.C. 

6c); and (2) executed purchases and sales of commodities for future delivery in 

a manner which was not open and competitive, in wilful violation of section 1.38 

of the regulations (17 CFR 1.38). The complainant states that the 

administrative officials of the Commodity Exchange Authority have carefully 

considered the stipulation submitted by the respondents. The administrative 

officials believe that the prompt entry of the proposed order would constitute a 

satisfactory disposition of this case, serve the public interest and effectuate 

the purposes of the Act. The complainant recommends, therefore, that the 

stipulation be accepted and the proposed order be issued. It is concluded that 

the complainant's recommendation should be adopted. 

ORDER

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

shall cease and desist from: (1) entering into, or offering to enter into, any 

futures transaction subject to the Commodity Exchange Act if such transaction 

is, is of the character of, or is commonly known to the trade as, a "wash sale"; 

and (2) executing any futures transaction subject to the Commodity Exchange Act 

if such transaction is not executed openly and competitively in accordance with 

section 1.38 of the regulations issued under the Commodity Exchange Act (17 CFR 

1.38). 

Effective on the twentieth day after the date of issuance of this order, (1) 

the registrations of the respondents as floor 
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brokers under the Commodity Exchange Act are suspended for a period of ten (10) 

days, and (2) the respondents are prohibited from trading on or subject to the 

rules of any contract market for a period of ten (10) days, and all contract 

markets shall refuse all trading privileges to the respondents during this 

period, such prohibition and refusal to apply to all trading done and all 

positions held by the respondents, directly or indirectly. 

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

on each contract market. 

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