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Commodity Futures Trading Commission 

CEA CASES 

NAME: PACIFIC TRADING COMPANY, STEPHEN J. KLEMEN JR., AND RAYMOND S. BUCK 

DOCKET NUMBER: 226; 75-1 

DATE: APRIL 12, 1974 

DOCUMENT TYPE: COMPLAINT 

NOTE: LATER BECAME CFTC DOCKET # 75-1 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Pacific Trading Company, Stephen J. Klemen, Jr., Raymond S. Buck, 

Respondents 

CEA Docket No. 226 

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 alleging the following: 

I 

The respondent Pacific Trading Company, a partnership with its principal 

place of business at 141 West Jackson Boulevard, Chicago, Illinois 60604, is 

now, and was at all times material herein, a registered futures commission 

merchant under the Commodity Exchange Act. At all such times, respondent 

Pacific Trading Company held membership privileges on the Chicago Board of Trade 

and the Chicago Mercantile Exchange. 

II 

The Chicago Board of Trade and the Chicago Mercantile Exchange are now, and 

were at all times material herein, duly designated contract markets under the 

Commodity Exchange Act. 

III 

Stephen J. Klemen, Jr., whose business address is the same as that of Pacific 

Trading Company, is now, and was at all times material herein, a general partner 

in Pacific Trading Company and a registered floor broker under the Commodity 

Exchange Act. 

IV 

Raymond S. Buck, whose business address is the same as that of Pacific 

Trading Company, is now, and was at all times material herein, a general partner 

in Pacific Trading Company and a registered floor broker under the Commodity 

Exchange Act. 

V 

During the period from June 25, 1973, through June 27, 1973, respondent 

Pacific Trading Company was required by section 17.00 of the regulations issued 

pursuant to the Commodity Exchange Act (17 CFR 17.00) to submit to the Commodity 

Exchange Authority series '01 reports with respect to all Special Accounts 

showing each reportable position, separately for each contract market and for 

each future, in such account as of the close of the market on the day covered by 

the report. 
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The respondent company filed such reports; however, such reports were 

incomplete and materially inaccurate with respect to such reportable positions, 

summarized as follows: 

See original document-page 2 

Date 

6/25/73 6/26/73 6/27/73

Number of reportable traders 9 8 8

Number of positions: 

 Correctly reported 1 2 2

 Incorrectly reported 14 14 13

 Not reported 19 19 19

 Total reportable 34 35 34

 Reported, not reportable 13 11 14

 

Range of errors: Grains - '000 bushels 15-835 10-625 15-340

 Others - contracts 1-135 1-131 1-134

VI 

During the period from June 25, 1973, through June 27, 1973, respondent 

Klemen was a trader who held or controlled a reportable position in wheat, oats, 

soybean meal, and soybean oil futures. Respondent was therefore required by 

section 18.00 of the regulations issued pursuant to the Commodity Exchange Act 

(17 CFR 18.00) to submit to the Commodity Exchange Authority series '03 reports 

showing all transactions executed and all open contract positions held for his 

account in all such futures on all contract markets. 

Respondent Klemen filed the required reports; however, such reports were 

incomplete and materially inaccurate with respect to such transactions, 

summarized as follows: 

See original document-page 3 

Date 

6/25/73 6/26/73 6/27/73

Number of positions: Correctly reported 1 1 1

 Incorrectly reported 9 9 9

 Not reported 3 3 3 Total reportable 13 13 13

 Reported, Not reportable 4 4 4 Range of errors: Grains - '000 bushels 255-305 255-305 255-305

 Others - contracts 1-120 1-120 1-120

VII 

During the period from June 25, 1973, through June 27, 1973, respondent Buck 

was a trader who held or controlled a reportable position in wheat, oats, 

soybeans, soybean meal, and soybean oil futures. Respondent was therefore 

required by section 18.00 of the regulations issued pursuant to the Commodity 

Exchange Act (17 CFR 18.00) to submit to the Commodity Exchange Authority series 

'03 reports showing all transactions executed and all open contract positions 

held for his account in such futures on all contract markets. 

Respondent Buck filed the required reports; however, such reports were 

incomplete and materially inaccurate with respect to such transactions, 

summarized as follows: 

See original document-page 4 
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Date 

6/25/73 6/26/73 6/27/73

Number of positions: Correctly reported -0- -0- -0-

 Incorrectly reported 5 5 6

 Not reported 6 6 6 

 Total reportable 11 11 12 

 Reported, not reportable 2 2 1

 Range of errors: Grains - '000 bushels 200-305 200-305 200-305

 Others - contracts 1-135 1-131 1-134

VIII 

By reason of the facts alleged in this Complaint, the respondents willfully 

violated sections 4g, 4i, and 6(b) of the Commodity Exchange Act (7 U.S.C. 6g, 

6i, and 9), and sections 17.00 and 18.00 of the regulations issued thereunder 

(17 CFR 17.00 and 18.00). 

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 purposes of this 

proceeding. Failur 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 the material allegations of fact contained in the Complaint are 

admitted likewise will 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 in Chicago, Illinois, at a place therein and date to be 

specified later, before an Administrative Law Judge 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 appropriate order should not be issued in 

accordance with the Commodity Exchange Act, (1) suspending or revoking the 

registration of respondent Pacific Trading Company as futures commission 

merchant, (2) suspending or revoking the registration of respondents Klemen and 

Buck as floor brokers, (3) prohibiting all 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 (4) directing that all respondents shall cease and 

desist from violating the Act and regulations in the manner alleged herein. 

Done at Washington, D. C. April 12 1974 

[SEE SIGNATURE IN ORIGINAL] 

Acting Secretary 

CLAYTON YEUTTER 

LOAD-DATE: August 6, 2008 
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