Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: INTERNATIONAL COMMODITIES CORPORATION AND RICHARD B. OTTENS 

CITATION: 33 Agric. Dec. 1237 

DOCKET NUMBER: 227 

DATE: SEPTEMBER 26, 1974 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 16,018) 

In re INTERNATIONAL COMMODITIES CORPORATION and RICHARD B. OTTENS. CEA Docket 

No. 227. Decided September 26, 1974. 

Floor broker and futures commission merchant -- Financial requirements -- 

failure to meet -- Reports and records -- failure to prepare and to keep in 

accordance with regulations -- Sanctions

Where respondents violated the Act and regulations in failing to meet the 

minimum financial requirements of the Act and in failing to prepare and to keep 

reports and records in accordance with the regulations, respondents are ordered 

to cease and desist from such violations. The individual respondent is 

suspended as a registrant under the Act for a period of 30 days. The corporate 

respondent is suspended as a registrant under the Act for a period of 60 days. 

Michael D. Weiner, for complainant. 

William B. Richards, Chicago, Ill., for respondent. 

Decision by William J. Weber, Administrative Law Judge.

DECISION AND ORDER

PRELIMINARY STATEMENT

This is an administrative proceeding under the Commodity Exchange Act, 

referred to herein as "the Act" (7 U.S.C. § 1 et seq.), instituted by a 

Complaint and Notice of Hearing, alleging that the respondent International 

Commodities Corporation was at all times material a registered futures 

commission merchant 

and that the respondent Richard B. Ottens was at all times material a registered 

floor broker under the Act and president and majority stockholder of respondent 

International Commodities Corporation. The Complaint charges that the 

respondents failed to meet the minimum financial requirements under section 4f 

of the Commodity Exchange Act. The Complaint further charges that the 

respondent failed to keep funds in segregated accounts sufficient to pay the 

equities due all regulated commodity customers. The Complaint further charges 

that respondents failed to prepare a written computation of its net worth and 

failed in its obligations to keep "full, complete, and systematic records." Such 

acts were alleged to have been willful and in violation of sections 4d, 4f, and 

4g of the 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). 

Prior to hearing the respondents agreed to a stipulation under section 0.4(b) 

of the Rules of Practice (17 CFR 0.4(b)) in which they (1) admit the facts 

hereunder as set forth in paragraphs 1 through 8 of the Findings of Fact, (2) 

waive oral hearing on the charges in the Complaint and (3) consent to the entry, 
Page 2 

without further proceedings, of a Decision and Order containing the facts 

admitted in such stipulation as the Findings of Fact for the purposes of this 

proceeding only, conclusions of law based on such findings, and the Order 

contained herein. 

FINDINGS OF FACT

1. 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. 

2. 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. 

3. 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 Commodity 

Exchange Act. 

4. 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 

section 1.20 of the regulations issued thereunder (17 CFR 1.20). 

5. 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

6. An audit of respondent corporation's records further disclosed 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. 
Page 3 

7. 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 International 

Commodities Corporation failed to prepare such computations for the months of 

July, August, and September, 1973. 

8. Section 1.35 of the regulations issued pursuant to the Commodity Exchange 

Act (17 CFR 1.35) obligated the respondent corporation to keep "full, complete, 

and systematic records . . . Included among such records shall be all . . . 

ledgers." An examination of the general ledger of International Commodities 

Corporation as of October 31, 1973, indicates 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. 

CONCLUSIONS

By reason of the facts set forth above, International Commodities Corporation 

and Richard B. Ottens violated 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) 

by failing to meet the minimum financial requirements of the Act. The 

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

sections 1.20 of the regulations issued thereunder (17 CFR 1.20) by failing to 

segregate funds sufficient to pay the equities due all regulated commodity 

customers on thirteen specified dates. Respondents violated section 1.10 of the 

regulations (17 CFR 1.10) by failing to prepare a written computation of its net 

worth for the months of July, August, and September, 1973, and violated section 

1.35 of the regulations (17 CFR 1.35) by failing to keep full, complete, and 

systematic records relating to its commodities futures business. 

The complainant states that Administrative Officials of the Commodity 

Exchange Authority have carefully considered the stipulation submitted by the 

respondent. The Administrative Officials believe that the prompt entry of the 

proposed Order would constitute a satisfactory disposition of this case, serve 

the public interest, and effectuate the purposes of the Act. The complainant 

recommends, therefore, that the stipulation be accepted and the proposed Order 

be issued. 

ORDER

1. Effective on the date of service of this Order upon the respondent 

International Commodities Corporation and the respondent Richard B. Ottens, the 

respondents shall cease and desist from: 

(a) Engaging in business as a futures commission merchant within the meaning 

of the Commodity Exchange Act without meeting the financial requirements 

prescribed by 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), and 

(b) Failing to keep funds in segregated accounts sufficient to pay the 

equities due all regulated commodity customers, and 

(c) Failing to prepare a written computation of its net worth at least once 

each month, and 

(d) Failing to keep full, complete, and systematic records as required by 

section 1.35 of the regulations promulgated under the Commodity. Exchange Act 

(17 CFR 1.35). 

2. Effective upon the date of service of this Order, 

(a) The registration of respondent Ottens as floor broker is hereby suspended 

for a period of 30 days, and 

(b) Respondent Ottens is prohibited from trading on or subject to the rules 

of any contract market for a period of 30 days, and all contract markets shall 

refuse all trading privileges to the respondent during this period, such 
Page 4 

prohibition and refusal to apply to all trading done and all positions held by 

respondent Ottens, directly or indirectly. 

3. Effective upon the date of service of this Order, 

(a) The registration of respondent International Commodities Corporation as 

futures commission merchant under the Commodity Exchange Act is hereby suspended 

for a period of 60 days, and 

(b) Respondent International Commodities Corporation is prohibited from 

trading on or subject to the rules of any contract market for a period of 60 

days, and all contract markets shall refuse all trading privileges to the 

respondent during this period, such prohibition and refusal to apply to all 

trading done and all positions held by respondent International Commodities 

Corporation, directly or indirectly. 

A copy of this Decision and Order shall be served on the respondents and on 

each contract market. 

LOAD-DATE: June 9, 2008 
Page 5