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Commodity Futures Trading Commission 

CEA CASES 

NAME: AMERICAN COMMODITY BROKERS, INC. AND PHYLLIS C. DEMPSTER 

CITATION: 28 Agric. Dec. 813 

DOCKET NUMBER: 160 

DATE: JULY 9, 1969 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 12,582) 

In re AMERICAN COMMODITY BROKERS, INC. and PHYLLIS C. DEMPSTER. CEA Docket No. 

160. Decided July 9, 1969. 

Violation of financial requirements -- Cease and desist -- Consent

The respondent corporation is ordered to cease and desist from engaging in 

business as a futures commission merchant without meeting the minimum financial 

requirements prescribed by the regulations issued under the Commodity Exchange 

Act, and the individual respondent, president of the corporate respondent, is 

ordered to cease and desist from aiding, etc., any futures commission merchant 

to engage in business without meeting the minimum financial requirements as 

prescribed. 

Earl L. Saunders for Commodity Exchange Authority. 

John K. Cannon, Dykema, Wheat, Spencer, Goodnow and Trigg, Detroit, Mich., 

for respondents. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

The respondents are charged with violating section 4f of the Commodity 

Exchange Act (7 U.S.C. 6f, Supp. IV, 1969) and section 1.17 of the regulations 

issued thereunder (34 F.R. 599). No hearing has been held. The respondents have 

submitted a stipulation under § 0.4(b) of the rules of practice (17 CFR 0.4(b)), 

in which they admit the facts hereinafter set forth, waive hearing on the 

charges, and consent to the entry of the order contained herein. 

FINDINGS OF FACT

1. Respondent American Commodity Brokers, Inc., is now, and was at all times 

material herein, a corporation organized and 

existing under the laws of the State of Michigan, with its principal office at 

14500 West Eight Mile Road, Oak Park, Michigan. The said corporation is now, 

and was at all such times, a registered futures commission merchant under the 

Commodity Exchange Act, engaged in trading in commodities for future delivery 

for the accounts of customers and holding for such customers sums of money, 

representing deposits of margin by and trading profits accruing to such 

customers. 

2. Respondent Phyllis C. Dempster, an individual whose business address is 

14500 West Eight Mile Road, Oak Park, Michigan, is now, and was at all times 

material herein, president of the respondent corporation. At all such times, 

the operations of the respondent corporation were under the direction and 

control of respondent Phyllis C. Dempster. 
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3. As of March 31, 1969, the respondent corporation failed to meet the 

minimum financial requirements prescribed by section 1.17 of the regulations (34 

F.R. 599) issued by the Secretary of Agriculture under the Commodity Exchange 

Act. According to the report of the respondent corporation's financial 

condition (Form 1-FR) which it filed with the Commodity Exchange Authority on 

April 30, 1969, the respondent corporation, as of March 31, 1969, had current 

liabilities of $ 34,790.91 and current assets of $ 21,008.80. 

CONCLUSIONS

By reason of the facts set forth in the Findings of Fact, it is concluded 

that, as charged in the complaint, the respondents violated section 4f of the 

Commodity Exchange Act and section 1.17 of the regulations thereunder. 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the stipulation and waiver 

submitted by the respondents. 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 

Commodity Exchange Act. The complainant recommends, therefore, that the 

stipulation and waiver be accepted and that the proposed order be issued. 

It is concluded that the complainant's recommendation should be adopted. 

ORDER

Effective on the date of service of this order upon respondent American 

Commodity Brokers, Inc., it shall cease and desist from engaging as futures 

commission merchant without meeting the minimum financial requirements 

prescribed by section 1.17 of the regulations (34 F.R. 599) issued under the 

Commodity Exchange Act. 

Effective on the date of service of this order upon respondent Phyllis C. 

Dempster, she shall cease and desist from wilfully causing, aiding, abetting, 

counseling, commanding or inducing American Commodity Brokers, Inc., or any 

other futures commission merchant, to engage as futures commission merchant 

without meeting the minimum financial requirements prescribed by section 1.17 of 

the regulations (34 F.R. 599) issued under the Commodity Exchange Act. 

A copy of this Decision and Order shall be served on each of the parties. 

 

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