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Commodity Futures Trading Commission 

CEA CASES 

NAME: GERSTENBERG AND COMPANY, RAYMOND A. GERSTENBERG, AND LEO J. PRINDIVILLE 

DOCKET NUMBER: STIPULATION 15 

DATE: JUNE 25, 1952 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Gerstenberg and Company, Raymond A. Gerstenberg, and Leo J. Prindiville 

763 Board of Trade Building Chicago 4, Illinois 

Stipulation of Compliance under the Commodity Exchange Act No. 15 

WHEREAS, the Secretary of Agriculture has reason to believe that the abovenamed persons have violated sections 4b(D) and 4c(A) of the Commodity Exchange 

Act, and 

WHEREAS, no complaint has been filed with respect to such violations and the 

above-named persons desire to enter into a stipulation pursuant to the 

provisions of section 0.4(a) of the rules of practice under the Commodity 

Exchange Act. 

NOW, THEREFORE, Gerstenberg and Company, Raymond A. Gerstenberg and Leo J. 

Prindiville admit the following facts are true: 

(1) Gerstenberg and Company is a partnership consisting of Raymond A. 

Gerstenberg, Raymond M. Gerstenberg, and Frank A. Jost, doing business at Room 

763 Board of Trade Building, Chicago 4, Illinois. The partnership is registered 

as a futures commission merchant under the provisions of the Commodity Exchange 

Act and enjoys membership trading privileges on the Board of Trade of the City 

of Chicago. Leo J. Prindiville is a member of the said Board of Trade, is 

registered as a floor broker under the provisions of the Commodity Exchange Act, 

and is employed by the partnership as its office manager. 

(2) The Board of Trade of the City of Chicago, hereinafter referred to as the 

Board of Trade, is duly designated as a contract market under the provisions of 

the Commodity Exchange Act. 

(3) On May 2, 1950, Gerstenberg and Company entered in its records and 

confirmed to its customer, namely, Joseph Saranella, four purchases and four 

offsetting sales on the Board of Trade totaling 65,000 bushels of May soybeans 

in amounts and at prices as follows: 25,000 bushels at $ 3.11 l/2 per bushel; 

15,000 bushels at $ 3.11 l/4 per bushel; 20,000 bushels at $ 3.11 per bushel; 

and 5,000 bushels at $ 3.10 3/4 per bushel. Each of these transactions was of 

the character of a "cross trade" or "accommodation trade" accomplished as 

illustrated in the following manners: An actual transaction in May soybeans 

totaling 20,000 bushels, at a price of $ 3.11 per bushel, had been made between 

two floor brokers on the Board of Trade wherein the buying floor broker 

represented the firm of Thomson and McKinnon and the selling floor broker 

represented the firm of A. J. Riffel and Company. Sometime thereafter Raymond 

A. Gerstenberg arranged for these two floor brokers to alter their records so as 

to make it appear that the Thomson and McKinnon floor broker 
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had bought from Gerstenberg instead of from Riffel as actually had taken place, 

and that the Riffel floor broker had sold to Gerstenberg instead of to Thomson 

and McKinnon as had actually taken place. 

(4) On May 3, 1950, Gerstenberg and Company caused to be entered on its 

records under date of May 1, 1950, the purchase from itself of 75,000 bushels of 

May soybeans at $ 3.10 per bushel, also the sale to itself of 75,000 bushels of 

May soybeans at $ 3.10 per bushel all for account of the one and same customer, 

namely Midwest Manufacturing and Plating Company. The records were made to 

indicate that this transaction was made on the Board of Trade between Leo J. 

Prindiville and Raymond A. Gerstenberg, acting as floor brokers for Gerstenberg 

and Company. Both the purchase and offsetting sale were confirmed to said 

customer whereas they were office trades or more bookkeeping entries and thus 

were fictitious in nature. 

(5) On May 3, 1951, N. P. Olson, a customer of Gerstenberg and Company, 

entered an order to buy on the Board of Trade 5,000 bushels, in job lots, of May 

corn. This order was purportedly executed at a price of $ 1.77 7/8 per bushel 

by a trade between Leo J. Prindiville and Raymond A. Gerstenberg, wherein the 

latter was selling for his own account through another member firm of the Board 

of Trade, namely Schwoer and Company. Thus, in the making of this contract, 

Raymond A. Gerstenberg knowingly and wilfully became the seller in respect to 

the buying order of his customer without having the prior consent of said 

customer. 

(6) On May 15, 1951, W. H. Mueller, a customer of Gerstenberg and Company, 

entered an order to sell on the Board of Trade 5,000 bushels of May oats. This 

order was purportedly executed at a price of 87 1/4 cents per bushel by a trade 

between Leo J. Prindiville and Raymond A. Gerstenberg, wherein the latter was 

buying for his own account through the firm of Schwoer and Company. Thus, in 

the making of this contract, Raymond A. Gerstenberg knowingly and wilfully 

became the buyer in respect to the selling order of his customer without having 

the prior consent of the customer. 

(7) On June 20, 1961, A. L. Book, a customer of Gerstenberg and Company, 

entered an order to buy on the Board of Trade 15,000 bushels of July oats. This 

order was purportedly executed at a price of 78 3/8 cents per bushel by a trade 

between Leo J. Prindiville and Raymond A. Gerstenberg, wherein the latter was 

selling for his own account through the firm of Schwoer and Company. Thus, in 

the making of this contract, Raymond A. Gerstenberg knowingly and wilfully 

became the seller in respect to the buying order of his customer without having 

the prior consent of said customer. 

(8) On July 2, 1951, J. H. Strever, a customer of Gerstenberg and Company, 

entered an order to buy on the Board of Trade 5,000 bushels of July oats. This 

order was purportedly executed at 74 cents per bushel by a trade between Leo J. 

Prindiville and 

Raymond A. Gerstenberg, wherein the latter was selling for his own account 

through the firm of Schwoer and Company. Thus, in the making of this contract, 

Raymond A. Gerstenberg knowingly and wilfully became the seller in respect to 

the buying order of his customer without having the prior consent of said 

customer 

(9) On July 2, 1951, D. Wolf, a customer of Gerstenberg and Company, entered 

an order to sell 5,000 bushels of September oats. This order was purportedly 

executed at 76 3/4 cents per bushel by a trade between Leo J. Prindiville and 

Raymond A. Gerstenberg, wherein the latter was buying for his own account 

through the firm of Schwoer and Company. Thus, in the making of this contract, 

Raymond A. Gerstenberg knowingly and wilfully became the buyer in respect to the 

selling order of his customer without having the prior consent of said customer. 
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(10) On May 21, 1951, the aforementioned customer, A. L. Book, entered with 

Gerstenberg and Company an order to buy on the Board of Trade 20,000 bushels of 

May oats. This order was purportedly executed at a price of 79 7/8 cents per 

bushel for 15,000 bushels, and 80 cents per bushel for 5,000 bushels by trading 

between a floor broker, namely J. P. Lamy, and Raymond A. Gerstenberg, wherein 

the latter was selling for his own account through the firm of Schwoer and 

Company. This order was given to J. F. Lamy by Raymond A. Gerstenberg. Thus, 

in the making of these contracts, Raymond A. Gerstenberg knowingly and wilfully 

became the seller in respect to the buying order of his customer without having 

the prior consent of said customer. 

(11) On June 20, 1951, the aforementioned customer, J. H. Strever, entered 

with Gerstenberg and Company an order to sell on the Board of Trade 10,000 

bushels of July oats. This order was purportedly executed at 78 cents per 

bushel by a trade between the aforementioned J. F. Lamy and Raymond A. 

Gerstenberg, wherein the latter was buying for his own account through the firm 

of Schwoer and Company. This order was given to J. F. Lamy by Raymond A. 

Gerstenberg. Thus, in the making of this contract, Raymond A. Gerstenberg 

knowingly and wilfully became the buyer in respect to the selling order of his 

customer without having the prior consent of said customer. 

In addition to admitting the facts set forth above, Gerstenberg and Company, 

Raymond A. Gerstenberg, and Leo J. Prindiville hereby agree to discontinue all 

acts and practices which are in violation of the Commodity Exchange Act, and 

specifically agree that this stipulation shall be admissible in any subsequent 

proceedings brought against said Gerstenberg and Company, Raymond A. 

Gerstenberg, and Leo J. Prindiville in connection with any violations of the 

Commodity Exchange Act and regulations thereunder. 

Done at Chicago, Illinois, 

this 25 day of June 1962. 

Witnessed by /s/ Arthur W. Mayo 

/s/ A. R. Grosstephan 

/s/ Gerstenberg & Co. 

Gerstenberg and Company 

BY /s/ R. A. Gerstenberg 

/s/ Raymond A. Gerstenberg 

Raymond A. Gerstenberg 

/s/ Leo J. Prindiville 

Leo J. Prindiville 

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