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Commodity Futures Trading Commission 

CEA CASES 

NAME: RICE COMMODITIES, INC., AND SAM L. RICE, JR. 

DOCKET NUMBER: 213 

DATE: MAY 4, 1973 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Rice Commodities, Inc., and Sam L. Rice, Jr., Respondents 

CEA Docket No. 213 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondents have violated sections 4f and 

6(b) of the Commodity Exchange Act (7 U.S.C. 6f, 9) and sections 1.17 and 1.35 

of the regulations issued thereunder (17 CFR 1.17, 1.35), and this complaint and 

notice of hearing is issued alleging the following. 

I 

Respondent Rice Commodities, Inc., an Ohio corporation, with its principal 

place of business at 633 North Reynolds Road, Toledo, Ohio, was at all times 

material herein, registered as a futures commission merchant under the Commodity 

Exchange Act and a member of the Chicago Board of Trade. As a futures 

commission merchant, Rice Commodities, Inc., was required to meet the working 

capital rules of the Chicago Board of Trade and if it failed to meet such 

requirements, it was required to meet the working capital requirements provided 

for in section 1.17 of the regulations under the Commodity Exchange Act (17 CFR 

1.17). 

II 

Respondent, Sam L. Rice, Jr., an individual, whose business address is the 

same as that of the respondent corporation, is now, and was at all times 

material herein, president of Rice Commodities, Inc., and responsible for the 

management, direction and control of its activities. 

III 

On March 31, 1972, and on April 21, 1972, the respondent corporation was 

engaged in business as a registered futures commission merchant under the 

Commodity Exchange Act, notwithstanding that on both dates it failed to meet the 

working capital requirements prescribed by the Chicago Board of Trade and the 

minimum financial requirements under section 4f of the Commodity Exchange Act (7 

U.S.C. 6f) and section 1.17 of regulations thereunder (17 CFR 1.17). As of 

March 31, 1972, the respondent corporation lacked approximately $ 11,500 of 

having sufficient capital to meet such minimum financial requirements under the 

Act and on April 21, 1972, it lacked approximately $ 25,500 of having sufficient 

capital to meet the minimum financial requirements. 

IV 

On April 21, 1972, the respondent corporation submitted to the Commodity 

Exchange Authority a financial report (Form 1-FR) as of March 31, 1972, 

certified by the respondent Sam L. Rice. Jr. The said respondents willfully 

made material false statements in such report by stating that the corporation 
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had an excess of adjusted working capital when in fact it failed to meet minimum 

financial requirements under the Commodity Exchange Act. 

V 

By reason of the facts alleged in this complaint, the respondents have 

willfully violated sections 4f and 6(b) of the Commodity Exchange Act (7 U.S.C. 

6f, 9) and sections 1.17 and 1.35 of the regulations issued thereunder (17 CFR 

1.17, 1.35). 

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

served upon the respondents 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 

respondents 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 

respondents are hereby notified that unless hearing is waived, a hearing will be 

held in Toledo, Ohio, at a place therein and date to be specified later, before 

a referee designated to conduct such hearing. At such hearing, 

the respondents 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) suspending or revoking the registration of respondent Rice 

Commodities, Inc., as futures commission merchant, (2) prohibiting the 

respondents from trading on or subject to the rules of any contract market, and 

directing that all contract markets refuse all trading privileges to the 

respondents for such period of time as may be determined and (3) directing that 

the respondents shall cease and desist from violating the Act and regulations in 

the manner alleged herein. 

Done at Washington, D.C. 

May 4, 1973 

[SEE SIGNATURE IN ORIGINAL] 

CLAYTON YEUTTER 

Assistant Secretary 

LOAD-DATE: June 12, 2008 
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