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Commodity Futures Trading Commission 

CEA CASES 

NAME: VERUS C. STECK 

DOCKET NUMBER: STIPULATION 45 

DATE: NOVEMBER 16, 1959 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Verus C. Steck 

Stipulation of Compliance under the Commodity Exchange Act No 45 

WHEREAS, the Secretary of Agriculture has reason to believe that Verus C. 

Steck has violated the provisions of the Commodity Exchange Act (7 U.S.C., 1952 

ed., Chapter 1) and the rules and regulations of the Secretary of Agriculture 

promulgated thereunder by virtue of certain transactions involving the purchase 

and sale of rye futures, and 

WHEREAS, no complaint with respect to such violations has been issued, and 

WHEREAS, section 0.4(a) of the Rules of Practice under the Commodity Exchange 

Act (17 CFR 0.4(a)) provides that at any time prior to the issuance of a 

complaint in any proceeding, the Secretary of Agriculture may, in his 

discretion, enter into a stipulation with prospective respondents whereby the 

latter admit the material facts and agree to discontinue the acts or practices 

which are intended to be set up as violative of the act, and 

WHEREAS, the said Verus C. Stock is desirous of disposing of this matter by 

entering into such a stipulation, 

NOW, THEREFORE, the said Verus C. Steck hereby stipulates and represents that 

the following facts are true: 

1. Verus C. Steck is a member of the Chicago Board of Trade and is employed 

as a telephone man by D. R. Comenso & Co. 

2. Section 4c of the Commodity Exchange Act (7 U.S.C., 1952 ed., § 6c) 

provides in part as follows: 

It shall be unlawful for any person to offer to enter into, enter into, or 

confirm the execution of, any transaction involving any commodity, which is or 

may be used for (1) hedging any transaction in interstate commerce in such 

commodity or the products or byproducts thereof, or (2) determining the price 

basis of any such transaction in interstate commerce in such commodity, or (3) 

delivering any such commodity sold, shipped, or received in interstate commerce 

for the fulfillment thereof -- 

(A) if such transaction is, is of the character of, or is commonly known to 

the trade as, a "wash sale", "cross trade", or "accomodation trade", or is a 

fictitious sale; 

3. Section 1.38 of the rules and regulations under the Commodity Exchange Act 

(17 CFR, 1954 Supp., 1.38) provides as follows: 

All purchases and sales of any commodity for future delivery on or subject to 

the rules of a contract market shall be executed openly and competitively as to 

price by open outcry or posting of bids and offers or by other equally open and 

competitive methods, in the trading pit or ring or similar place provided by the 

contrast market, during the regular hours prescribed by the contract market for 
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trading in such commodity: Provided, however, That this requirement shall not 

apply to such transactions as are executed in accordance with written rules of 

the contract market which have been submitted to and not disapproved by the 

Secretary of Agriculture, specifically providing for the noncompetitive 

execution of such transactions. 

4. On five dates Verus C. Steck, acting for his own account, made the 

following transactions in rye futures traded on the Chicago Board of Trade. 

Bought Sold 

Quantity Future Price Date Quantity Future Price 

10 Dec. 131 Nov. 7, 1958 10 Dec. 131 

10 March 131 3/4 Nov. 7, 1958 10 March 131 3/4 

 10 Dec. 131 3/4 Dec. 5, 1958 10 Dec. 131 3/4 

10 March 131 3/8 Dec. 5, 1958 10 March 131 3/8 5 March 132 1/2 Jan. 2, 1959 5 March 132 1/2 

5 March 135 1/8 Jan. 30, 1959 5 March 135 1/8 5 May 134 Feb. 13, 1959 5 May 134 

The above transactions were "wash sales" made in violation of section 4c(A) 

of the Commodity Exchange Act (7 U.S.C., 1952 ed., § 6c(A)) and were not made 

openly and competitively in the trading pit but by prearrangement, and were in 

violation of section 1.38 of the rules and regulations under the Commodity 

Exchange Act (17 CFR, 1954 Supp., 1.38). 

In addition to admitting the foregoing facts, the said Verus C. Steck hereby 

agrees to discontinue all such acts and practices and to refrain from all other 

acts and practices which are in violation of the Commodity Exchange Act or the 

rules and regulations thereunder, and further understands that the stipulation 

shall be admissible as evidence of acts and practices in violation of the rules 

and regulations 

under the Commodity Exchange Act in any proceeding based upon transactions in 

addition to those referred to in paragraph 4 hereof which may hereafter be 

brought by the Secretary of Agriculture against the said Verus C. Steck under 

the provisions of the said act. 

Date: Nov 16th 1959 

[SEE SIGNATURE IN ORIGINAL] 

Verus C. Steck 

Witnessed by: 

[SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

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