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Commodity Futures Trading Commission 

CEA CASES 

NAME: WILLIAM E. HENNER 

DOCKET NUMBER: 181 

DATE: AUGUST 24, 1971 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: William E. Henner, Respondent 

CEA Docket No. 181 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent, William E. Henner, has 

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 

stating the charges in that respect as follows: 

I 

The respondent, William E. Henner, an individual, whose business address is 

141 West Jackson Boulevard, Chicago, Illinois 60604, is now, and was at all 

times material herein a registered floor broker under the Commodity Exchange Act 

and a member of the Chicago Mercantile Exchange, hereinafter referred to as the 

exchange. 

II 

The exchange is now, and was at all times material herein, a duly designated 

contract market under the Commodity Exchange Act. 

III 

The transactions referred to in this complaint relate to the purchase and 

sale of July 1969 pork belly futures contracts on the 

exchange. Such contracts could have been used for hedging transactions in 

interstate commerce in pork bellies or the products or by-products thereof, or 

for determining the price basis of transactions in interstate commerce in pork 

bellies, or for delivering pork bellies sold, shipped, or received in interstate 

commerce. 

IV 

On February 14, 1969, the respondent, acting as floor trader for his own 

account on the exchange, sold two July 1969 pork belly futures contracts to Alan 

L. Freeman, who was acting in the capacity of floor broker for the account of a 

customer. Thereafter, on the same day, in order to aid the said Freeman to fill 

a customer's sell order, the respondent entered into a non-competitive 

arrangement with Freeman whereby the respondent gave to Freeman one of such 

sales which the respondent had previously made for his own account to Freeman, 

and the respondent prepared and turned in to the exchange a trading card 

purporting to show that he had sold only one contract to Freeman. By reason of 

such facts, the respondent made a trade on or subject to the rules of a contract 

market otherwise than by open and competitive methods, in wilful violation of 

section 1.38 of the regulations under the Commodity Exchange Act (17 CFR 1.38); 
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caused false records to be entered, in wilful violation of section 4b(B) of the 

Act (7 U.S.C. 6b(B)); and failed to keep full and complete 

records of futures transactions, as required by section 1.35 of the regulations 

and section 4g of the Act (17 CFR 1.35; 7 U.S.C. 6g), and in wilful violation 

thereof. In addition, the effect of the transaction in which the respondent 

gave to Freeman the one sale was to enable Freeman's buying customer to buy from 

his selling customer and, therefore, the respondent entered into a transaction 

which is, or is of the character of, an "accommodation trade," in wilful 

violation of section 4c(A) of the Act (7 U.S.C. 6c(A)). 

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 three 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 the 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 at 10:00 a.m., local time, on November 3, 1971, in Chicago, Illinois, at 

a place therein 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) suspending or revoking the 

registration of the respondent as floor broker, (2) 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 (3) directing that the respondent 

shall cease and desist from violating the Act and regulations 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 24, 1971 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

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