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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROBERT E. WILLEY, EARLE M. COMBS III, RICHARD A. FRYMIRE, AND HOWARD S. 

FISHER 

CITATION: 27 Agric. Dec. 40 

DOCKET NUMBER: 144 

DATE: JANUARY 4, 1968 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 11,579) 

In re ROBERT E. WILLEY, EARLE M. COMBS III, RICHARD A. FRYMIRE, and HOWARD S. 

FISHER. CEA Docket No. 144. Decided January 4, 1968. 

Wash transactions -- Noncompetitive trades -- Suspension of registrations -- 

Denial of trading privileges -- Stipulation

Respondents consented to the issuance of an order suspending the 

registrations of the floor broker respondents and directing all contract markets 

to refuse trading privileges to all respondents for activities involving 

fictitious or wash transactions and noncompetitive trades. 

Earl L. Saunders for Commodity Exchange Authority. 

Robert P. Howington, Jr., of Pope, Ballard, Uriel, Kennedy, Shepard & Fowle, 

Chicago, Ill., for respondents Willey and Frymire. 

Sidney C. Hamper and Arthur A. Reiser, Jr., of Hamper & Reiser, Chicago, 

Ill., for respondents Combs and Fisher. 

Jack W. Bain, Referee. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is an administrative proceeding under the Commodity Exchange Act (7 

U.S.C. 1 et seq.), in which the respondents are charged with making wash trades 

and noncompetitive trades in wheat and soybean futures in violation of the act 

and the regulations thereunder. A hearing was had in Chicago before Jack W. 

Bain, Office of Hearing Examiners. On December 18, 1967, after 

the complainant had presented evidence and while the hearing was in recess, the 

respondents filed separate stipulations in which they admit, for the purposes of 

this proceeding and for such purposes only, the facts hereinafter set forth 

insofar as such facts concern the particular respondent, and agree to the entry 

of the order contained herein, without futher proceedings. 

FINDINGS OF FACT

1. The Chicago Board of Trade is now and was at all times material herein a 

duly designated contract market under the Commodity Exchange Act. 

2. Respondent Robert E. Willey is an individual whose business address is 

Fourth Floor, 141 West Jackson Boulevard, Chicago, Illinois. He is now and was 

at all times material herein a registered floor broker under the Commodity 

Exchange Act and a member of the Chicago Board of Trade. 
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3. Respondent Earle M. Combs III is an individual whose business address is 

Room 1502, 141 West Jackson Boulevard, Chicago, Illinois. He is now and was at 

all times material herein a member of the Chicago Board of Trade. 

4. Respondent Richard A. Frymire is an individual whose business address is 

Room 1388, 141 West Jackson Boulevard, Chicago, Illinois. He is now and was at 

all times material herein a registered floor broker under the Commodity Exchange 

Act and a member of the Chicago Board of Trade. 

5. Respondent Howard S. Fisher is an individual whose business address is 

Room 1632, 141 West Jackson Boulevard, Chicago, Illinois. He is now and was at 

all times material herein a registered floor broker under the Commodity Exchange 

Act and a member of the Chicago Board of Trade. 

6. The transactions specified herein were in wheat and soybean futures and 

were entered into on or subject to the rules of the Chicago Board of Trade. At 

all times material herein wheat and soybean futures on the Chicago Board of 

Trade were traded in job lot units of 1,000 bushels and in round lot units of 

5,000 bushels. 

7. During the period from May 21, 1965, through February 28, 1966, 

respondents Robert E. Willey, Earle M. Combs III and 

Richard A. Frymire, entered into transactions as specified in the tabulation 

below. In entering into the said transactions the said respondents acted 

pursuant to, and in accordance with, an understanding or arrangement that 

reciprocal and offsetting purchases and sales would be made at little or no 

price advantage or disadvantage to the respondents for whose accounts the 

purchases and sales were made. 

100> >101> 

Purchase 

Respondent for Respondent 

Whose Account Acting As Commodity Purchase Floor Broker 

Date and Future was Made or Trader Unit 

5/21/65 March soybeans Willey Willey Round 

5/21/65 March soybeans Combs Combs Job 

 8/27/65 March wheat Combs Combs Job 

8/27/65 March wheat Willey Willey Round 

 

11/23/65 March wheat Willey Willey Round 

11/23/65 March wheat Combs Combs Job 

 11/23/65 March wheat Willey Wiley Job 

11/23/65 March wheat Combs Combs Round 12/8/65 May wheat Combs Combs Job 

12/8/65 September wheat Willey Willey Round 

 12/8/65 May wheat Willey Willey Job 

12/8/65 September wheat Combs Combs Round 

 12/8/65 March soybeans Frymire Willey Job 

12/8/65 March soybeans Combs Combs Job 

12/8/65 May soybeans Frymire Willey Job 

12/8/65 May soybeans Combs Combs Job 

12/14/65 May wheat Willey Willey Round 

12/14/65 May wheat Combs Combs Job 
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 Purchase 

 Respondent for Respondent 

 Whose Account Acting As 

 Commodity Purchase Floor Broker 

Date and Future was Made or Trader Unit 

12/14/65 September wheat Willey Willey Job 

12/14/65 September wheat Combs Combs Round 

 12/15/65 May wheat Willey Willey Job 

12/15/65 May wheat Combs Combs Round 

Sale 

Respondent Acting 

Quantity (In As Floor Respondent for 

Thousands of Broker Whose Account 

Date Bushels) Price or Trader Sale was Made 

5/21/65 195 2.53-1/4 Combs Combs 

5/21/65 195 2.53-1/4 Willey Willey 

8/27/65 195 1.62-1/2 Willey Willey 

8/27/65 195 1.62-1/2 Combs Combs 

11/23/65 175 1.68 Combs Combs 

11/23/65 175 1.68 Willey Willey 

11/23/65 175 1.66-1/2 Combs Combs 

11/23/65 175 1.66-1/2 Willey Willey 

12/8/65 195 1.66-7/8 Willey Willey 

12/8/65 195 1.60 Combs Combs 12/8/65 195 1.67 Combs Combs 

12/8/65 195 1.60 Willey Willey 12/8/65 100 2.69-3/4 Combs Combs 

12/8/65 100 2.69-3/4 Willey Frymire 12/8/65 100 2.72 Combs Combs 

12/8/65 100 2.72 Willey Frymire 

12/14/65 100 1.73 Combs Combs 

12/14/65 100 1.73 Willey Willey 12/14/65 195 1.63-1/2 Combs Combs 

12/14/65 195 1.63-1/2 Willey Willey 12/15/65 100 1.70 Combs Combs 

12/15/65 100 1.70 Willey Willey 

100> >101> 

Purchase 

Respondent for Respondent Whose Account Acting As Commodity Purchase Floor Broker 

Date and Future was Made or Trader Unit 

12/15/65 September wheat Willey Willey Round 

12/15/65 September wheat Willey Willey Round 

 

12/15/65 September wheat Combs Combs Job 

12/15/65 September wheat Combs Combs Job 

1/10/66 March soybeans Combs Combs Round 

1/10/66 March soybeans Willey Willey Job 
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 Purchase 

 Respondent for Respondent 

 Whose Account Acting As 

 Commodity Purchase Floor Broker 

Date and Future was Made or Trader Unit 

2/28/66 March wheat Willey Willey Job 

2/28/66 March wheat Combs _____ n1 Round 

n1. A person not a respondent herein. 

Sale 

Respondent Acting Quantity (In As Floor Respondent for 

Thousands of Broker Whose Account 

Date Bushels) Price or Trader Sale was Made 

12/15/65 100 1.62-3/4 Combs Combs 

12/15/65 95 1.62-7/8 Combs Combs 

 12/15/65 100 1.62-3/4 Willey Willey 

12/15/65 95 1.62-3/4 Willey Willey 

 1/10/66 195 2.78 Willey Willey 

1/10/66 195 2.78 Combs Combs 

 2/28/66 195 1.63-1/4 _____ n1 Combs 

2/28/66 195 1.63-1/4 Willey Willey 

n1. A person not a respondent herein. 

 

8. During the period from November 8, 1965, through May 19, 1966, respondents 

Robert E. Willey and Richard A. Frymire, acting as principals, and respondent 

Howard S. Fisher, acting in his capacity of floor broker, entered into 

transactions as specified in the tabulation below. In entering into the said 

transactions the said respondents acted pursuant to, and in accordance with, an 

understanding or arrangement that reciprocal and offsetting purchases and sales 

would be made at little or no price advantage or disadvantage to the respondents 

for whose accounts the purchases and sales were made. 

100> >101> 

Purchase 

Respondent for Respondent Whose Account Acting As Commodity Purchase Floor Broker Date and Future was Made or Trader Unit 

11/8/65 May wheat Willey Willey Round 

11/8/65 May wheat Frymire Fisher Job 

 

11/8/65 July wheat Willey Willey Round 

11/8/65 September wheat Frymire Fisher Round 

11/8/65 May soybeans Willey Willey Job 

11/8/65 May soybeans Frymire Fisher Round 

 5/9/66 May soybeans Willey Willey Round 

5/9/66 May soybeans Frymire Frymire Job 

5/10/66 May wheat Willey Willey Job 

5/10/66 May wheat Frymire Frymire Round 

 5/19/66 July wheat Frymire Fisher Round 

5/19/66 July wheat Frymire Fisher Round 

5/19/66 September wheat Willey Willey Round 

Sale 
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 Purchase 

 Respondent for Respondent 

 Whose Account Acting As 

 Commodity Purchase Floor Broker 

Date and Future was Made or Trader Unit 

Respondent Acting Quantity (In As Floor Respondent for 

Thousands of Broker Whose Account 

Date Bushels) Price or Trader Sale was Made 

11/8/65 100 1.65-1/2 Fisher Frymire 

11/8/65 100 1.65-1/2 Willey Willey 

11/8/65 195 1.53-1/4 Fisher Frymire 

11/8/65 195 1.55 Willey Willey 

11/8/65 100 2.58-1/2 Fisher Frymire 

11/8/65 100 2.58-1/2 Willey Willey 

5/9/66 100 3.00 Frymire Frymire 

5/9/66 100 3.00 Willey Willey 

5/10/66 100 1.60 Frymire Frymire 

5/10/66 100 1.60 Willey Willey 

5/19/66 125 1.62-1/4 Willey Willey 

5/19/66 70 1.62-3/8 Willey Willey 

5/19/66 195 1.64 Fisher Frymire 

 

9. The transactions in wheat and soybean futures specified in Findings of 

Fact 7 and 8 above, were capable of being used for (1) hedging a transaction in 

interstate commerce in wheat or soybeans, respectively, or the products or byproducts thereof, or (2) determining the price basis of a transaction in 

interstate commerce in wheat or soybeans, respectively, or (3) delivering wheat 

or soybeans, respectively, sold, shipped, or received in interstate commerce. 

CONCLUSIONS

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

that, as charged in the complaint, the respondents: (1) entered into 

transactions which were, or were of the character of, wash sales and fictitious 

sales, in wilful violation of section 4c of the Commodity Exchange Act (7 U.S.C. 

6c), and (2) executed purchases and sales of commodities for future delivery in 

a manner which was not open and competitive, in wilfull violation of section 

1.38 of the regulations issued under the act (17 CFR 1.38). 

Complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the proposed stipulations and 

order, and that they believe the proposed sanctions are adequate and that prompt 

entry, without further proceedings, of the order to which the respondents have 

consented will constitute a satisfactory disposition of this case, serve the 

public interest, and effectuate the purposes of the Commodity Exchange Act. 

Complainant recommends, therefore, that the stipulations and waivers submitted 

by the respondents be accepted and that the proposed order be issued. It is so 

concluded. 

ORDER

Effective on the thirtieth day after the date of issuance of this order, (1) 

the registrations of respondents Robert E. Willey and Richard A. Frymire as 

floor brokers are suspended for a period of fifteen (15) days, (2) the 

registration of respondent Howard S. Fisher as floor broker is suspended for a 

period of seven (7) days, and (3) all contract markets shall refuse all trading 

privileges to respondents Robert E. Willey, Earle M. Combs III and Richard A. 

Frymire for a period of fifteen (15) days and to respondent Howard S. Fisher for 

a period of seven (7) days, such refusal to apply to all trading done and 

positions held by them directly or indirectly. 

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