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Commodity Futures Trading Commission 

CEA CASES 

NAME: WILLIAM R. THOMPSON, JR. 

DOCKET NUMBER: 148 

DATE: OCTOBER 3, 1967 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: William R. Thompson, Jr., Respondent 

CEA Docket No. 148 

Complaint and Notice of Hearing Under Section 6(b) of the Commodity Exchange 

Act 

There is reason to believe that the respondent, William R. Thompson, Jr., 

attempted to deceive, cheat and defraud and did deceive, cheat and defraud 

persons in or in connection with the making of trades in commodity futures on or 

subject to the rules of a board of trade in violation of section 4b of the 

Commodity Exchange Act (7 U.S.C. 6b), and in accordance with the provisions of 

section 6(b) of the said act (7 U.S.C. 9), this complaint and notice of hearing 

is issued stating the charges against the respondent as follows: 

I 

The respondent, William R. Thompson, Jr., an individual whose address is 1640 

Carmelle Court, Toledo, Ohio, was at all times material to this complaint an 

agent or employee of a firm (hereinafter referred to as the respondent's 

employer) which was at all times material to this complaint a futures commission 

merchant registered under the Commodity Exchange Act and entitled to membership 

privileges on the Chicago Board of Trade, a duly designated contract market 

under the Commodity Exchange Act. 

II 

At all times material to this complaint, the respondent was authorized to 

solicit or accept commodity futures orders for and in the name of the 

respondent's employer, and was engaged in causing the execution of orders on the 

Chicago Board of Trade on behalf of customers of the respondent's employer. 

III 

Beginning on or about March 22, 1967, and continuing until on or about June 

14, 1967, the respondent caused trades in wheat and corn futures to be executed 

on the Chicago Board of Trade and allocated such trades among the accounts of 

six customers of the respondent's employer as follows: (1) The "day trades" that 

resulted in profits were allocated among three accounts in which deficits had 

accrued as the result of trading by, or on the advice of, the respondent; and 

(2) The "day trades" that resulted in losses and the trades that would have 

resulted in losses if they had been closed on the day on which they were made, 

were allocated among three accounts in which there were surplus margins. The 

allocation of the unprofitable trades to the accounts having surplus margins 

resulted in such accounts sustaining losses in excess of $ 60,000. The three 

customers in whose accounts the unprofitable trades were placed had not 

authorized such trades and had no knowledge of them. In an effort to prevent 

such customers 
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from finding out that the unprofitable trades had been placed in their accounts, 

the respondent withheld from the customers the confirmations, statements of 

purchase and sale, and monthly statements that had been prepared and would have 

been sent to them in the normal course of business. 

IV 

On or about March 6, 1967, the respondent received $ 1, 000 from a customer 

of the respondent's employer to margin, guarantee or secure transactions for the 

account of such customer in commodity futures subject to the provisions of the 

Commodity Exchange Act. However, the respondent used such funds to margin, 

guarantee or secure commodity futures transactions for the account of another 

customer of the respondent's employer and subsequently caused to be delivered to 

the customer who advanced the funds monthly statements purporting to show that 

the funds had been credited to his account. 

V 

The futures transactions referred to in this complaint were capable of being 

used for hedging transactions in interstate commerce, or determining the price 

basis of transactions in interstate commerce, or for delivering commodities 

sold, shipped or received in interstate commerce. 

VI 

By reason of the facts set forth in this complaint, the respondent attempted 

to deceive, cheat and defraud and did deceive, cheat and defraud persons in or 

in connection with the making of contracts of sale of commodities for future 

delivery on or subject to the rules of a board of trade in wilful violation of 

section 4b of the Commodity Exchange Act (7 U.S.C. 6b). 

WHEREFORE, it is hereby ordered that this complaint and notice of hearing be 

served upon the respondent. 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 November 29, 1967, 

in Toledo, Ohio, 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 order should not be made directing that all contract markets 

refuse all trading privileges to the respondent for such period of time as may 

be determined. 

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. 

October 3, [ILLEGIBLE TEXT] 

[SEE SIGNATURE IN ORIGINAL] 

Rodney E. Leonard 

Acting Assistant Secretary 
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