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Commodity Futures Trading Commission 

CEA CASES 

NAME: JOHN T. LYONS, JOSEPH H. OWENS, AND EDWARD A. ARNOLD 

CITATION: 26 Agric. Dec. 221 

DOCKET NUMBER: 143 

DATE: MARCH 2, 1967 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 11,071) 

In re JOHN T. LYONS, JOSEPH H. OWENS, AND EDWARD A. ARNOLD. CEA Docket No. 143. 

Decided March 2, 1967. 

Fictitious transactions -- Noncompetitive trades -- Suspension of 

registrations -- Denial of trading privileges -- Stipulation

Respondents consented to the issuance of an order suspending the 

registrations of the two floor brokers for a period of 10 days and directing all 

contract markets to deny trading privileges to all three respondents for a like 

period for their activities involving fictitious or wash sales and 

noncompetitive trades. 

Mr. Earl L. Saunders for Commodity Exchange Authority. 

Mr. Arthur A. Reiser, Jr., of Hamper & Reiser, Chicago, Ill., for 

respondents. 

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.), initiated by a complaint issued on December 20, 1966, 

charging that the respondents entered into transactions which were, or were of 

the character of, wash sales or fictitious sales, in wilful violation of section 

4c of the Commodity Exchange Act (7 U.S.C. 6c), and that they executed purchases 

and sales of commodities for future delivery in a manner 

which was not open and competitive, in wilful violation of section 1.38 of the 

regulations under the Act (17 CFR 1.38). 

No hearing has been held with respect to this proceeding. On February 28, 

1967, the respondents submitted a stipulation under section 0.4(b) of the rules 

of practice (17 CFR 0.4(b)), in which they withdrew their answer previously 

filed, admit the facts hereinafter set forth, waive hearing on the charges, and 

consent to the entry of the order contained herein. 

FINDINGS OF FACT

1. Respondent John T. Lyons, an individual whose address is 12820 South 

Monitor Avenue, Palos Heights, Illinois, is now and was at all times material 

herein a registered floor broker under the Act and a member of the Chicago Board 

of Trade. 

2. Respondent Joseph H. Owens, an individual whose address is 1169 Board of 

Trade Building, Chicago, Illinois, is now and was at all times material herein a 

member of the Chicago Board of Trade. 
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3. Respondent Edward A. Arnold, an individual whose address is 12531 South 

68th Court, Palos Heights, Illinois, is now and was at all times material herein 

a registered floor broker under the Act and a member of the Chicago Board of 

Trade. 

4. The Chicago Board of Trade is now and was at all times material herein a 

duly designated contract market under the Commodity Exchange Act. The 

transactions in wheat and soybean futures referred to herein were entered into 

on or subject to the rules of the Chicago Board of Trade. In each such 

transaction, each respondent who participated therein acted as floor trader for 

his own account. At all times material herein wheat and soybean futures on the 

Chicago Board of Trade were traded in job lot units of 1,000 bushels and in 

round lot units of 5,000 bushels. 

5. The respondents, during the period from November 24, 1965, through March 

9, 1966, entered into the transactions specified in the tabulation below, which 

transactions were wash sales or were of the character of wash sales. In 

entering into the said transactions, the respondents acted pursuant to, and in 

accordance with, an understanding or arrangement that they would purchase from, 

and sell to, each other the same quantity of the same future at or about the 

same price. 

See original document-page 2 

Quantity Price Commodity Respondent (In Thousands (Cents per Respondent

Date and Future Buying Unit of Bushels) Bushel) Selling 

11-24-65 March Wheat Owens Job 150 165 5/8 Lyons 

11-24-65 March Wheat Lyons Round 150 165 5/8 Owens 

2-14-66 March Wheat Lyons Job 150 167 Owens 

2-14-66 March Wheat Owens Round 150 167 Lyons 

9-7-65 July Soybeans Owens Job 150 259 Lyons 

9-7-65 July Soybeans Lyons Round 150 259 Owens 

11-15-65 July Soybeans Lyons Job 150 264 Arnold 

11-15-65 July Soybeans Arnold Job 150 263 7/8 Lyons 

11-15-65 July Soybeans Owens Round 150 264 Arnold 

11-15-65 July Soybeans Arnold Round 150 264 Owens 

12-2-65 July Soybeans Owens Round 150 270 Arnold 

12-2-65 July Soybeans Arnold Round 150 270 Owens 

12-3-65 July Soybeans Lyons Job 150 269 1/2 Arnold 

12-3-65 July Soybeans Arnold Job 150 269 1/2 Lyons 3-9-66 July Soybeans Lyons Job 150 286 Owens 

3-9-66 July Soybeans Owens Round 150 286 Lyons 

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