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Commodity Futures Trading Commission 

CEA CASES 

NAME: ARTHUR GERBER, AND GERBER INVESTMENT CO., INC. 

DOCKET NUMBER: 150 

DATE: DECEMBER 27, 1967 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Arthur Gerber, and Gerber Investment Co., Inc., Respondents 

CEA Docket No. 150 

Complaint and Notice of Hearing Under Section 6(b) of the Commodity Exchange 

Act 

There is reason to believe that the respondents named herein have violated 

the Commodity Exchange Act (7 U.S.C. 1 et seq.), hereinafter called the act, and 

the regulations made pursuant thereto (17 CFR, Part 1), and in accordance with 

the provisions of section 6(b) of the act (7 U.S.C. 9), this complaint and 

notice of hearing is issued stating the charges in that respect as follows: 

I 

Respondent Arthur Gerber is an individual whose business address is 230 North 

Michigan Avenue, Chicago, Illinois. 

II 

Respondent Gerber Investment Co., Inc., an Illinois corporation with its 

office and place of business at 230 North Michigan Avenue, Chicago, Illinois, is 

registered as a futures commission merchant under the act and has been so 

registered since November 29, 1967. 

At all times material herein, respondent Arthur Gerber was in complete control 

of the respondent corporation, initiated and carried out the acts, dealings, and 

transactions of the corporation, and used the corporation as an instrument to 

conduct his own business. 

III 

At all times during the period from October 26 through December 8, 1967, 

inclusive, the respondents, acting in the capacity of futures commission 

merchant under the act, carried accounts for customers who traded in commodity 

futures subject to the provisions of the act and regulations thereunder, and had 

received funds belonging to such customers, representing deposits of margin by 

and trading profits accruing to such customers. During the same period, the 

respondents failed and refused to segregate and to account separately for the 

funds belonging to their customers, deposited such funds in the respondents' 

general bank account, used customers' funds for the respondents' own benefit, 

and failed and refused to prepare and maintain a daily record setting forth the 

amount of customers' money and equities required to be kept in segregation in 

accordance with the provisions of section 4d of the act (7 U.S.C. 6d). 

IV 
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By reason of the facts described in this complaint, the respondents wilfully 

violated sections 4d and 4g of the act (7 U.S.C. 6d and 6g) and sections 1.20, 

1.21, 1.32 and 1.35 of the regulations issued under the act (17 CFR 1.20, 1.21, 

1.32 and 1.35). 

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

served upon the said respondents. 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 

purposes 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 February 

7, 1968, in Chicago, Illinois, 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 order 

should not be made suspending or revoking the registration of respondent Gerber 

Investment Co., Inc., as futures commission merchant, and directing that all 

contract markets refuse all trading privileges to the respondents for such 

period of time as may be determined. 

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

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

hearing. 

Done at Washington, D. C. 

[ILLEGIBLE TEXT] 

[SEE SIGNATURE IN ORIGINAL] 

John A. Schnittker 

Under Secretary 

LOAD-DATE: June 16, 2008 
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