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Commodity Futures Trading Commission 

CEA CASES 

NAME: INTERNATIONAL COMMODITIES CORPORATION, AND RICHARD B. OTTENS 

DOCKET NUMBER: 227 

DATE: MAY 9, 1974 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: International Commodities Corporation, and Richard B. Ottens, Respondents 

CEA Docket No. 227 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondents have violated the Commodity 

Exchange Act (7 U.S.C. 1 et seq.), and the regulations made pursuant thereto, 

and this Complaint and Notice of Hearing is issued alleging the following: 

I 

Respondent International Commodities Corporation, an Illinois corporation 

with its principal place of business at 343 South Dearborn, Chicago, Illinois 

60604, 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. At all such times, respondent International 

Commodities Corporation held membership privileges on the MidAmerica Commodity 

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

II 

Respondent Richard B. Ottens, an individual whose business address is the 

same as that of respondent International Commodities Corporation, is now, and 

was at all times material herein, president and majority 

stockholder of International Commodities Corporation and registered as a floor 

broker under the Commodity Exchange Act. At all such times respondent Ottens 

had responsibility for the operation and management of the corporate respondent. 

III 

As of October 31, 1973, respondent corporation was engaged in business as a 

registered futures commission merchant under the Commodity Exchange Act, 

notwithstanding, that on that date it failed to 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 issued thereunder (17 CFR 1.17). As of October 

31, 1973, respondent corporation lacked approximately $ 173,300 of having 

sufficient capital to meet such financial requirements under the Act. 

IV 

At all times material herein, the respondents International Commodities 

Corporation and Richard B. Ottens were required to separately account for and 

segregate all money, securities, and property received to margin, guarantee, or 

secure the trades or contracts of commodity customers in accordance with the 

requirements of section 4d(2) of the Commodity Exchange Act (7 U.S.C. 6d) and 

sections 1.20 of the regulations issued thereunder (17 CFR 1.20). 
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V 

The segregation records of the respondent International Commodities 

Corporation disclose that the corporate respondent failed to keep funds in 

segregated accounts sufficient to pay the equities due all regulated commodity 

customers as follows: 

Amount of 

Date Undersegregation

January 23, 1974 $ 29,666.32

January 24, 1974 16,333.87

January 25, 1974 46,416.42

January 28, 1974 63,079.51

January 29, 1974 66,707.17

January 30, 1974 40,269.49

January 31, 1974 38,827.42

March 5, 1974 831.66

March 6, 1974 51,222.38

March 7, 1974 26,546.33

March 8, 1974 20,289.78

March 21, 1974 7,284.48

VI 

An audit of respondent corporations records further disclose that on February 

28, 1974, respondent International Commodities Corporation 

failed, by $ 5,146.54 to keep funds in segregated accounts sufficient to pay the 

equities due all regulated commodity customers. 

VII 

Under the regulations issued pursuant to the Commodity Exchange Act (17 CFR 

1.10) the respondent corporation was obligated at all times material herein to 

prepare a written computation of its net worth at least once a month. 

Examination of records of the corporate respondent indicate that the 

International Commodities Corporation failed to prepare such computations for 

the months of July, August, and September, 1973. 

VIII 

Section 1.35 of the regulations issued pursuant to the Commodity Exchange Act 

(17 CFR 1.35) obligated respondent corporation to keep "Full, complete, and 

systematic records . . . relating to the business of dealing in commodity 

futures . . . . Included among such records shall be all . . . ledgers." An 

examination of the general ledger of International Commodities Corporation as of 

October 31, 1973, indicated a failure to systematically maintain such records 

resulting in numerous errors causing the general ledger to be out of balance in 

excess of $ 60,000 as of October 31, 1973. 

IX 

By reason of the facts alleged in this Complaint, the respondents have 

willfully violated sections 4d, 4f, and 4g, of the Commodity Exchange Act (7 

U.S.C. 6d, 6f, and 6g) and sections 1.17, 1.20, and 1.35 of the regulations 

issued thereunder (17 CFR 1.17, 1.20, and 1.35). 

WHEREFORE, it is hereby ordered that this Complaint and Notice of Hearing be 

served upon the respondents 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, and 0.28). 

The respondents 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 four 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 
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answered will be deemed admitted for the purpose of this proceeding. Failure to 

file an answer will constitute an admission of all the allegations of this 

Complaint and a waiver of hearing. A 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 

respondents are hereby notified that unless such hearing is waived, a hearing 

will be held in Chicago, Illinois, at a place therein and date to be specified 

later, before an Administrative Law Judge designated to conduct such hearing. 

At such hearing, the respondents 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) suspending or revoking the registration of 

the respondent International Commodities Corporation as 

futures commission merchant, (2) suspending or revoking the registration of 

respondent Ottens as floor broker, (3) prohibiting the respondents from trading 

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

contract markets refuse all trading privileges to the respondents for such 

period of time as may be determined, and (4) directing that the respondents 

shall cease and desist from violating the Act and regulations in the manner 

alleged herein. 

Done at Washington, D.C. 

May 9 1974 

[SEE SIGNATURE IN ORIGINAL] 

Assistant Secretary 

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