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Commodity Futures Trading Commission 

CEA CASES 

NAME: DOUGLAS STEEN 

DOCKET NUMBER: 104 

DATE: OCTOBER 26, 1961 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Douglas Steen, Respondent 

CEA Docket No. 104 

Complaint and Notice of Hearing Under Section 6(b) of the Commodity Exchange 

Act 

There is reason to believe that Douglas Steen, herein-after referred to as 

the respondent, has violated the Commodity Exchange Act (7 U.S.C. 1958 ed., 

Chapter 1), hereinafter referred to as the act, and in accordance with the 

provisions of section 6(b) of the act (7 U.S.C. § 9), this complaint and notice 

of hearing is issued stating the charges in that respect as follows: 

I 

The respondent is an individual whose address is 3465 Valley Meadow Road, 

Sherman Oaks, California. At all times material to this complaint, the 

respondent was a member of the Board of Trade of the City of Chicago and the 

Chicago Mercantile Exchange, both duly designated contract markets under the 

act. 

II 

At all times material to this complaint, the respondent engaged in directing 

trading in commodity futures for, and controlled, a commodity futures account of 

one Carl H. Hopkins, which account was carried with Goodbody & Company, a 

registered futures commission merchant. With respect to such account, the 

respondent had an agreement with Carl H. Hopkins whereby the respondent was 

entitled to a share of profits resulting from certain trading conducted by 

respondent for such account. Under an arrangement with Goodbody & Company, 

pursuant to the rules of the Board of Trade of the City of Chicago and the 

Chicago Mercantile Exchange, the respondent was entitled to and received a share 

of the commissions earned by Goodbody & Company on transactions for said 

account. 

III 

Said Carl H. Hopkins died November 10, 1960. Prior to the transactions 

hereinafter referred to, the respondent was notified of the death of Carl H. 

Hopkins by a letter from his widow. Subsequently, on November 21, 1960, the 

respondent, notwithstanding such notification, caused the sale of December 1960 

egg futures on the Chicago Mercantile Exchange and 

January and March 1961 soybean meal futures on the Board of Trade of the City of 

Chicago for said account, establishing new short positions in such futures for 

such account on the said exchanges. These sales subsequently were closed out at 

prices which resulted in a net loss of approximately $ 2,457.00. 
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IV 

The transactions in commodity futures heretofore referred to in paragraph III 

above were capable of being used for hedging transactions in interstate commerce 

in eggs and soybean meal or the products or by-products thereof, or for 

determining the price basis of transactions in interstate commerce in such 

commodities, or for delivering such commodities sold, shipped, or received in 

interstate commerce. 

V 

By reason of the acts described in paragraph III, the respondent, in 

connection with the making of contracts for future delivery on behalf of a 

person, attempted to cheat or defraud and did cheat or defraud such person in 

violation of section 4b of the act (7 U.S.C. § 6b). 

WHEREFORE, it is hereby ordered that this complaint and notice of hearing be 

served upon the respondent. The respondent will have twenty (20) days after the 

receipt of this notice of hearing in which to file with the Hearing Clerk, 

United States Department of Agriculture, Washington 25, D. C., an answer in 

triplicate, wholly and completely stating the nature of the defense and 

admitting or denying, specifically and in detail, each material and relevant 

allegation of this complaint. Allegations not answered will be deemed admitted 

for the purpose of this proceeding. Failure to file an answer will constitute 

an admission of all the material allegations of this complaint and a waiver of 

hearing. The respondent is hereby notified that unless hearing is waived, 

either expressly or by failure to file an answer and request a hearing, a 

hearing will be held at 10:00 a.m., local time, on the 12th day of December 

1961, in New York, New York, at a place therein to be specified later, before a 

referee designated to conduct such hearing. At such hearing, the respondent 

will have the right to appear and show cause, if any there be, why an order 

should not be made directing all contract markets to refuse all trading 

privileges to the respondent for such period of time as may be determined. 

It is ordered that this complaint and notice of hearing be served on the 

respondent at least twenty (20) days prior to the date set for hearing. 

Done at Washington, D. C. 

October 26, 1961 

/s/ John P. Duncan, Jr. 

John P. Duncan, Jr. 

Assistant Secretary 

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