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Commodity Futures Trading Commission 

CEA CASES 

NAME: JON F. FREEMAN, D/B/A J. F. FREEMAN & COMPANY 

CITATION: 31 Agric. Dec. 1596 

DOCKET NUMBER: 198 

DATE: DECEMBER 22, 1972 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 14,892) 

In re JON F. FREEMAN, d/b/a J. F. FREEMAN & COMPANY. CEA Docket No. 198. 

Decided December 22, 1972. 

Minimum financial requirements -- Failure to meet -- Stipulation -- Denial of 

trading privileges -- Suspension

The stipulation filed herein by respondent has been accepted, the 

complainant's recommendtaion has been adopted, and the Order herein is issued, 

denying trading privileges to respondent for 60 days and suspending the 

registration of respondent as a futures commission merchant under the Act for 60 

days, as stated in the Order. 

Darrold A. Dandy, for complainant. 

Respondent pro se. 

Decision by Donald A. Campbell, Judicial Officer

DECISION AND ORDER

PRELIMINARY STATEMENT

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

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

September 1, 1972. It is alleged in the complaint that the respondent does not 

now meet the minimum financial requirements under section 4f of the Commodity 

Exchange Act (7 U.S.C. 6f) and section 1.17 of the regulations (17 CFR 1.17), 

and wilfully violated these sections by operating as a futures commission 

merchant while failing to meet such minimum financial requirements. 

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

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

which he (1) admits the facts hereinafter set forth in paragraph 1 of the 

Findings of Fact, (2) admits, for the purpose of this proceeding and for such 

purposes only, the remaining facts set forth in the Findings of Fact, and (3) 

waives oral hearing on the charges in the complaint and the report of the 

Referee and consents to the entry, without further proceedings, of the order 

contained herein. 

FINDINGS OF FACT

1. The respondent, Jon F. Freeman, an individual doing business as J. F. 

Freeman & Company with his principal office at 

6 Harrison Street, New York, New York 10013, is now, and was at all times 

material herein, a registered futures commission merchant under the Commodity 

Exchange Act, engaged in trading in commodities for future delivery for the 

accounts of customers and holding for such customers sums of money, representing 
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deposits of margin by and trading profits accruing to such customers. At all 

such times the respondent was subject to the minimum financial requirements set 

forth in section 1.17 of the regulations under the Commodity Exchange Act (17 

CFR 1.17). 

2. The respondent presently fails to meet the minimum financial requirements 

prescribed by section 1.17 of the regulations (17 CFR 1.17) issued by the 

Secretary of Agriculture under the Commodity Exchange Act and during the period 

from July 31 through August 30, 1972, failed to meet such requirements. 

According to the reports of the respondent's financial condition which he filed 

with the Commodity Exchange Authority on August 22, 1972, the respondent, as of 

July 31, 1972, had adjusted working capital amounting to approximately minus $ 

7,000, and a minimum working capital requirement amounting to approximately $ 

27,000, resulting in a working capital deficiency amounting to approximately $ 

34,000. 

CONCLUSIONS

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

respondent Jon F. Freeman, as charged in the complaint, does not now meet the 

minimum financial requirements under section 4f of the Commodity Exchange Act (7 

U.S.C. 6f) and section 1.17 of the regulations (17 CFR 1.17) and wilfully 

violated these sections by operating as a futures commission merchant while 

failing to meet such minimum financial requirements. 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the stipulation submitted by the 

respondent. The administrative officials believe that the prompt entry of the 

proposed order would constitute a satisfacory disposition of his 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

1. Effective upon the date of service of this Order upon the respondent, Jon 

F. Freeman, he shall cease and desist from, (1) engaging in business as a 

futures commission merchant within the meaning of the Commodity Exchange Act 

without meeting the financial requirements prescribed by section 4f of the 

Commodity Exchange Act (7 U.S.C. 6f) and section 1.17 of the regulations issued 

thereunder (17 CFR 1.17), and (2) wilfully causing, aiding, counseling, 

commanding or inducing any futures commission merchant to engage in any act or 

practice from which the said respondent is directed to cease and desist by this 

Order. 

2. The registration of the respondent as futures commission merchant under 

the Commodity Exchange Act is suspended for a period of 60 days and thereafter 

until such time as the said respondent demonstrates that he meets the financial 

requirements prescribed by section 1.17 of the regulations issued under the 

Commodity Exchange Act (17 CFR 1.17). At the request of the said respondent, 

when he makes such a showing, a supplemental order will be issued in this 

proceeding terminating such suspension after the sixty-day period. 

3. The respondent is prohibited from trading on or subject to the rules of 

any contract market for a period of 60 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 positions held 

directly by the said 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 wholly or in 

substantial amount by the said respondent or in any way subject to his direction 

or control, including but not limited to J. F. Freeman & Company. 

4. The period of suspension of the registration of the respondent set forth 

in paragraph 2, above, and the period of the prohibition or trading and denial 
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of trading privileges to the respondent set forth in paragraph 3, above, shall 

become effective on the thirtieth day after the date of entry of this order. 

LOAD-DATE: June 9, 2008 
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