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Commodity Futures Trading Commission 

CEA CASES 

NAME: HARRY STURM 

CITATION: 30 Agric. Dec. 1629 

DOCKET NUMBER: 182 

DATE: NOVEMBER 1, 1971 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 14,265) 

In re HARRY STURM. CEA Docket No. 182. Decided November 1, 1971. 

Trading in excess of limits -- Denial of trading privileges for 90 days -- 

Consent order

Respondent consented to the issuance of a cease and desist order and a denial 

of trading privileges on all the contract markets for a period of 90 days for 

violations of the act and regulations in exceeding the speculative position 

limits of May 1968 potato futures and failing to report his transactions and 

positions as required. 

Harold J. Reuben and Earl A. Saunders for Commodity Exchange Authority. 

Frank, Strelkow & Marx, Miami Beach, Fla., for respondent. 

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.), in which the respondent is charged with exceeding the maximum 

speculative position limits in potato futures in violation of section 4a of the 

Act (7 U.S.C. 6a) and the order of the Commodity Exchange Commission (17 CFR 

150.10), and with violating the reporting requirements of section 4i of the Act 

(7 U.S.C. 6i) and sections 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03 of the 

regulations issued under the Act (17 CFR 10.01, 15.02, 15.03, 18.00, 18.01, 

18.03). A hearing was had in Miami, Florida, before Jack W. Bain, Office of 

Hearing Examiners. On October 22, 1971, after the complainant had presented 

evidence and while the hearing was in recess, the respondent submitted a 

stipulation in which he admits, for the purposes of this proceeding and for such 

purposes only, the facts hereinafter set forth under "Findings of Fact," waives 

the report of the Hearing Examiner, and consents to the entry of the order 

contained herein, without further proceedings. The respondent states in such 

stipulation that the admissions made therein "shall not be construed as an 

admission for the purposes of any other proceeding, criminal or civil, and are 

made solely for the purpose of terminating this proceeding." 

FINDINGS OF FACT

1. The respondent is an individual whose address is 730 First Street, Miami 

Beach, Florida. 

2. The New York Mercantile Exchange is now, and was at all times material 

herein, a duly designated contract market under the Commodity Exchange Act. 

3. On the dates listed below, the respondent held or controlled speculative 

positions in the May 1968 potato future on the New York Mercantile Exchange 

which were in excess of the maximum permissible limits established by the order 

of the Commodity Exchange Commission (17 CFR 150.10) as follows: 
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Position 

No. of 

Carlots 

Date Long Short 

April 18, 1968 165 

April 19, 1968 174 

May 1, 1968 170 

4. During the periods from February 14, 1968, through March 15, 1968, and 

March 25, 1968, through May 15, 1968, the respondent 

made trades in potato futures on the New York Mercantile Exchange in accounts 

carried in the names of Harry Sturm and Anne Sturm. All transactions in such 

accounts during such period belonged to or were controlled by the respondent. 

5. On each day during the periods February 14, 1968, through March 15, 1968, 

and March 25, 1968, through May 15, 1968, the respondent held or controlled a 

long position or a short position, or both, in the May 1968 potato future on the 

New York Mercantile Exchange each of which positions exceeded 25 carlots. The 

respondent was, therefore, in reporting status during such periods and was 

required to report to the Commodity Exchange Authority with respect to all 

transactions executed and all open contract positions held or controlled by him, 

in all potato futures on all contract markets during the said periods, and with 

respect to all transactions by reason of which the respondent's position was 

reduced below reporting levels, as provided in section 4i of the Commodity 

Exchange Act (7 U.S.C. 6i) and sections 15.01, 15.02, 15.03, 18.00, 18.01, and 

18.03 of the rules and regulations thereunder (17 CFR 15.01, 15.02, 15.03, 

18.00, 18.01, 18.03). 

6. The respondent filed reports with the Commodity Exchange Authority which 

showed transactions and positions in potato futures in accounts carried in his 

name, on various dates during the periods February 14, 1968, through March 15, 

1968, and March 25, 1968, through May 16, 1968, but the respondent failed to 

include in such reports the transactions and positions in the account carried in 

the name of Anne Sturm which belonged to or were controlled by the respondent. 

Nor did the respondent report ot the Commodity Exchange Authority with respect 

to the transactions that were executed in potato futures for the accounts owned 

or controlled by him on six other days during the periods specified above, 

namely February 27; April 18, 22 and 26; and May 1 and 6, 1968. 

7. On numerous occasions dating as far back as 1953 and continuing up to 

April, 1967, officials of the Commodity Exchange Authority not only informed the 

respondent of his responsibilities under the Commodity Exchange Act and 

regulations with respect to speculative trading and position limits and 

reporting requirements, but also found it necessary to communicate with the 

respondent in writing directing attention to his failure to observe such limits 

and file the required reports. 

CONCLUSIONS

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

that, as charged in the complaint, the respondent wilfully violated sections 4a 

and 4i of the Commodity Exchange Act (7 U.S.C. 6a, 6i), the order of the 

Commodity Exchange Commission establishing limits on positions in potatoes for 

future delivery (17 CFR 150.10), and sections .15.01, 15.02, 15.03, 18.00, 18.01 

and 18.03 of the regulations issued under the Commodity Exchange Act (17 CFR 

15.01, 15.02, 15.03, 18.00, 18.01, 18.03). 

The complainant states that 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 

Commodity Exchange Act. The complainant recommends, therefore, that the 
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stipulation be accepted and the proposed order be issued. It is concluded that 

the complainant's recommendation should be adopted. 

ORDER

(a) Respondent, Harry Sturm, shall cease and desist (1) from failing to file, 

in accordance with the Commodity Exchange Act and the regulations thereunder, 

such reports as he is required to file under such act and regulations, and (2) 

from trading or holding positions in amounts in excess of the maximum limits 

established by the orders of the Commodity Exchange Commission. 

(b) Respondent, Harry Sturm, is prohibited from trading on or subject to the 

rules of any contract market for a period of 90 days and all contract markets 

shall refuse all trading privileges to the respondent during this period. Such 

prohibition and refusal shall apply to all trading done and all positions held 

directly by the respondent, either for his own account or as the agent or 

representative of any other person or firm, and also to all trading done and 

positions held indirectly through persons or firms owned by the respondent or in 

any way subject to his direction or control, including but not limited to 

American Fruit Purveyors, Inc., and Ronden Food Systems, Inc. 

The cease and desist provisions of this order set forth in paragraph (a) 

above shall become effective upon the date of service of this order upon the 

respondent. 

The period of the denial of trading privileges to the respondent specified in 

paragraph (b) above shall become effective on the thirtieth day after the date 

of entry of this order. 

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

on each contract market. 

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