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Commodity Futures Trading Commission 

CEA CASES 

NAME: HARRY STURM 

DOCKET NUMBER: 182 

DATE: SEPTEMBER 2, 1971 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Harry Sturm, Respondent 

CEA Docket No. 182 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent, Harry Sturm, 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 is an individual whose address is 730 First Street, Miami 

Beach, Florida. 

II 

The New York Mercantile Exchange is now, and was at all times material 

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

III 

On the dates listed below, the respondent held or controlled speculative 

positions in the May 1968 potato future on the New York Mercantile Exchange 

which were in excess of the maximum permissible limits established by the order 

of the Commodity Exchange Commission (17 CFR 150.10) as follows: 

See original document-page 1 

Position 

(No. of Carlots) 

Date Long Short 

April 18, 1968 165 

April 19, 1968 174 

May 1, 1968 170 

By reason thereof, the respondent wilfully violated section 4a(2) of the 

Commodity Exchange Act and the order of the Commodity Exchange Commission 

establishing limits on position and daily trading in potatoes for future 

delivery (7 U.S.C. 6a(2); 17 CFR 150.10). 

IV 

During the periods from February 14, 1968, through March 15, 1968, and March 

25, 1968, through May 15, 1968, the respondent made trades in potato futures on 

the New York Mercantile Exchange in accounts carried in the names of Harry Sturm 

and Anne Sturm. All transactions in such accounts during such period belonged 

to or were controlled by the respondent. 

V 

On each day during the periods February 14, 1968, through March 15, 1968, and 

March 25, 1968, through May 15, 1968, the respondent held or controlled a long 
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position or a short position, or both, in the May 1968 potato future on the New 

York Mercantile Exchange each of which positions exceeded 25 carlots. The 

respondent was, therefore, in reporting status during such periods and was 

required to report 

to the Commodity Exchange Authority with respect to all transactions executed 

and all open contract positions held or controlled by him, in all potato futures 

on all contract markets during the said periods, and with respect to all 

transactions by reason of which the respondent's position was reduced below 

reporting levels, as provided in section 4i of the Commodity Exchange Act (7 

U.S.C. 6i) and sections 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03 of the rules 

and regulations thereunder (17 CFR 15.01, 15.02, 15.03, 18.00, 18.01, 18.03). 

VI 

The respondent filed reports with the Commodity Exchange Authority which 

showed transactions and positions in potato futures in accounts carried in his 

name, on various dates during the periods February 14, 1968, through March 15, 

1968, and March 25, 1968, through May 16, 1968, but the respondent failed to 

include in such reports the transactions and positions in the account carried in 

the name of Anne Sturm which belonged to or were controlled by the respondent. 

Nor did the respondent report to the Commodity Exchange Authority with respect 

to the transactions that were executed in potato futures for the accounts owned 

or controlled by him on six other days during the periods specified above, 

namely February 27; April 18, 22 and 26; and May 1 and 6, 1968. By reason 

thereof, the respondent wilfully violated the sections of the Commodity Exchange 

Act and the regulations cited in paragraph V above. 

VII 

On numerous occasions dating as far back as 1953 and continuing up to April, 

1967, officials of the Commodity Exchange Authority not only informed the 

respondent of his responsibilities under the Commodity Exchange Act and 

regulations with respect to speculative trading and position limits and 

reporting requirements, but also found it necessary to communicate with the 

respondent in writing directing attention to his failure to observe such limits 

and file the required reports. 

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 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. 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 October 21, 1971, in Miami, Florida, 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) 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 
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period of time as may be determined and (2) 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. 

Sept 2, 1971 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

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