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Commodity Futures Trading Commission 

CEA CASES 

NAME: LOUIS DREYFUS CORPORATION 

DOCKET NUMBER: 215 

DATE: AUGUST 8, 1973 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Louis Dreyfus Corporation, Respondent 

CEA Docket No. 215 

Complaint and Notice of Hearing 

There is reason to believe that the respondent has violated the commodity 

Exchange Act, as amended (7 U.S.C. 1 et seq.), hereinafter [ILLEGIBLE 

TEXT]eferred to as the Act. This complaint and notice of hearing is issued 

[ILLEGIBLE TEXT]tating the charges in that respect as follows. 

I 

Louis Dreyfus Corporation is now and was at all times material herein a 

business firm with its principal office and place of business at One State 

Street Plaza, New York, New York. At all times material herein, Dreyfus was 

engaged in merchandising wheat, held reportable positions in wheat, and was 

required to submit reports to the Commodity Exchange Authority showing the 

details of its cash positions in wheat. 

II 

During the period from about July 7, 1972 to about October 20, 1972, the 

respondent submitted to the Commodity Exchange Authority sixteen reports on 

Report Form 204 C.E.A., "Weekly Statement of Cash Grain 

[ILLEGIBLE TEXT]ositions". With respect to the entries in these reports 

purporting to how respondent's fixed-price cash position in wheat, all of these 

reports [ILLEGIBLE TEXT]ere incorrect, with errors ranging from more than 

900,000 bushels to more than 25,000,000 bushels. 

III 

Respondent was notified by the Commodity Exchange Authority by a Letter dated 

October 30, 1972, that the 204 report for August 25, 1972, appeared to be 

inaccurate. Subsequently, on November 15, 1973, respondent submitted corrected 

reports for each date on which the reports described above had been submitted. 

IV 

The table below shows a comparison of the information relating to wheat as 

shown on the 204 reports originally submitted and the information relating to 

wheat as shown on the corrected reports submitted on November 15, 1972. 

See original document-page 2 

(In bushels 000) 

Date Per original Per corrected Difference 

as of 204 reports 204 report (amount of 

submitted error) 
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November 15, 

1972 Long Short Long Short Long Short 

(1) (2) (3) (4) (5) (6) (7) 

1972 July 7 3,738 1,855 5,646 5,197 - 1,908 - 3,342

14 6,249 29,784 8,717 32,595 - 2,468 - 2,811

21 6,500 29,980 7,429 33,595 - 929 - 3,615

28 11,526 33,270 13,969 36,444 - 2,443 - 3,174

Aug. 4 24,946 88,136 26,712 92,312 - 1,766 - 4,176

11 35,302 89,706 39,745 93,238 - 4,443 - 3,532

18 37,438 91,521 42,475 95,716 - 5,037 - 4,195

25 41,113 92,746 48,750 112,216 - 7,637 - 19,470

Sept. 1 46,090 97,165 66,842 120,326 - 20,752 - 23,161

8 47,073 96,778 67,730 119,556 - 20,657 - 22,778

15 57,618 97,817 83,440 122,246 - 25,822 - 24,429

22 60,097 106,959 84,355 126,380 - 24,258 - 19,421

29 66,807 105,630 92,072 126,156 - 25,265 - 20,526

Oct. 6 69,226 109,726 94,249 130,846 - 25,023 - 21,120

13 70,392 107,494 96,237 125,205 - 25,845 - 17,711

20 72,225 103,634 95,708 126,296 - 23,483 - 22,662

V 

By reason of the facts alleged herein, the respondent willfully violated the 

provisions of section 4i of the Act (7 U.S.C. 6i) and sections 15.01(d), 19.00, 

and 19.01 of the regulations of the Secretary of Agriculture promulgated under 

the Commodity Exchange Act (17 CFR 15.01 (d), 19.00, 19.01). 

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

served upon the respondent and this proceeding shall be governed by sections 

0.1, 0.2, 0.4(b), 0.5 through 0.22 and 0.28 of the 

rules of practice under the Commodity Exchange Act (17 CFR 0.1, 0.2, 0.4 (b), 

0.5 through 0.22, 0.28). The respondent will have twenty (20) days after the 

receipt of this complaint in which to file with the Hearing Clerk, United States 

Department of Agriculture, Washington, D. C. 20250, an answer with an original 

and five copies, fully and completely stating the nature of the defense and 

admitting or denying, specifically and in detail, each allegation of this 

complaint. Allegations not answered will be deemed admitted for purposes of 

this proceeding. Failure to file an answer will constitute an admission of all 

the allegations of this complaint and a waiver of hearing. The filing of an 

answer in which all of the material allegations of fact contained in the 

complaint are admitted likewise shall constitute a waiver of hearing unless a 

hearing is requested. The respondent is hereby notified that unless hearing is 

waived, a hearing will be held in New York, New York, at a place therein and 

date 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 appropriate order should not be issued in accordance with 

the Commodity Exchange Act, (1) prohibiting the respondent from trading on or 

subject to the rules of any contract market, and directing that all contract 

markets refuse all trading privileges to the respondent for such period of time 

as may be determined and (2) directing that the respondent shall cease and 

desist from violating the Act and the regulations thereunder in the manner 

alleged herein. 

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. 

August 8, 1973 
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[SEE SIGNATURE IN ORIGINAL] 

CLAYTON YEUTTER 

Assistant Secretary 

LOAD-DATE: June 12, 2008 
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