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Commodity Futures Trading Commission 

CEA CASES 

NAME: J. MORONI STOOF AND M-S COMMODITIES, INC. 

DOCKET NUMBER: 187 

DATE: NOVEMBER 17, 1971 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: J. Moroni Stoof and M-S Commodities, Inc., Respondents 

CEA Docket No. 187 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondents have violated the Commodity 

Exchange Act (7 U.S.C. 1 et seq.) and the regulations made pursuant thereto, and 

this complaint and notice of hearing is issued stating the charges in that 

respect as follows: 

I 

(a) Respondent J. Moroni Stoof, whose last known address is 1180 South 4th 

East, Bountiful, Utah, was at all times material herein co-manager of the Salt 

Lake City, Utah, branch office of respondent M-S Commodities, Inc. 

(b) Respondent M-S Commodities, Inc., a corporation with its principal 

offices at 110 North Franklin Street, Chicago, Illinois, is now, and was at all 

times material herein, a registered futures commission merchant under the 

Commodity Exchange Act. 

II 

During the period March 15 through March 18, 1971, respondent J. Moroni Stoof 

converted to his own use funds totalling $ 51,691.44 

which had been received by respondent M-S Commodities, Inc., from its customers 

to margin their transactions in commodities for future delivery, or accrued to 

such customers as the result of such transactions. Such transactions in 

commodities for future delivery could have been used for hedging transactions in 

interstate commerce in such commodities or the products or by-products thereof, 

or for determining the price basis of transactions in interstate commerce in 

such commodities, or for delivering such commodities sold, shipped or received 

in interstate commerce. 

III 

(a) At the times hereinafter stated, respondent M-S Commodities, Inc., in 

connection with its business as a futures commission merchant, had to its credit 

with a bank or other depository sums of money in varying amounts, held in 

segregated account and identified as customers' funds, representing deposits of 

margin by and trading profits accruing to such customers. 

(b) As a result of the conversion of customers' funds by respondent J. Moroni 

Stoof as described in paragraph II above, and the commingling by the respondent 

corporation of the trades, and the funds pertaining thereto, of respondent Stoof 

with those of the ordinary customers of the firm, the respondent corporation was 
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under-segregated in the amounts of $ 1,204.54, $ 51,691.44 and $ 50,403.88 on 

March 15, 17 and 18, 1971, respectively, that is, the 

total amount of customers, funds held in segregation was insufficient, by the 

aforesaid sums, to pay all credits and equities due to such customers. 

IV 

By reason of the facts described in this complaint, respondent J. Moroni 

Stoof wilfully violated sections 4b and 9 of the Commodity Exchange Act (7 

U.S.C. 6b and 13), and respondents Stoof and M-S Commodities, Inc., wilfully 

violated section 4d of the said act and sections 1.20, 1.21 and 1.22 of the 

regulations thereunder (17 CFR 1.20, 1.21 and 1.22). 

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 five 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 at 10:00 a.m., local time, on January 26, 1972, in Salt Lake City, Utah, at 

a place therein 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) prohibiting the respondent J. 

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

directing that all contract markets refuse all trading privileges to him for 

such period of time as may be determined and (2) directing that J. Moroni Stoof 

and M-S Commodities, Inc. shall cease and desist from violating the Act and 

regulations in the manner alleged herein. 

It is ordered that this complaint and notice of hearing be served on the 

respondents at least twenty (20) days prior to the date set for hearing. 

Done at Washington, D. C. 

November 17, 1971 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

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