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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROBERT E. O'GRADY, CARL D. LEAVEN, LEONARD B. FELDMAN, DONALD T. BARCLAY, 

TIME TRADING CO., AND RITTENHOUSE INVESTMENTS, INC. 

DOCKET NUMBER: 184 

DATE: SEPTEMBER 10, 1971 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Robert E. O'Grady, Carl D. Leaven, Leonard B. Feldman, Donald T. Barclay, 

Time Trading Co., and Rittenhouse Investments, Inc., Respondents 

CEA Docket No. 184 

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 Robert E. O'Grady, an individual whose address is 100 North La 

Salle Street, Fourth Floor, Chicago, Illinois 60602, is now, and was at all 

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

Act and a member of the Chicago Mercantile Exchange. 

(b) Respondent Carl D. Leaven, an individual whose address is 100 North La 

Salle Street, Fourth Floor, Chicago, Illinois 60602, is now, and was at all 

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

Act and a member of the Chicago Mercantile Exchange. 

(c) Respondent Leonard B. Feldman, an individual whose address is 110 North 

Franklin Street, Room 421, Chicago, Illinois 60606, is now, and was at all times 

material herein, a registered floor broker under the Commodity Exchange Act, a 

member of the Chicago Mercantile Exchange, and a general partner in respondent 

Time Trading Co. 

(d) Respondent Donald T. Barclay, an individual whose address is 10615 South 

Seeley Street, Chicago, Illinois 60643, was at all times material herein, a 

registered floor broker under the Commodity Exchange Act, a member of the 

Chicago Mercantile Exchange, and president of respondent Rittenhouse 

Investments, Inc. 

(e) Respondent Time Trading Co., a partnership whose address is 110 North 

Franklin Street, Chicago, Illinois 60606, is now, and was at all times material 

herein, a clearing member of the Chicago Mercantile Exchange and a registered 

futures commission merchant under the Commodity Exchange Act. 

(f) Respondent Rittenhouse Investments, Inc., a corporation whose address is 

10615 South Seeley Street, Chicago, Illinois 60643, was at all times material 

herein, a clearing member of the Chicago Mercantile Exchange, and is now, and 

was at all times material herein, a registered futures commission merchant under 

the Commodity Exchange Act. 

II 
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The Chicago Mercantile Exchange is now, and was at all times material herein, 

a duly designated contract market under the Commodity Exchange Act. The 

transactions referred to in this complaint relate to the purchase and sale of 

pork belly futures contracts on the exchange. Such contracts could have been 

used for hedging transactions in interstate commerce in pork bellies or the 

products or by-products thereof, or for determining the price basis of 

transactions in interstate commerce in pork bellies, or for delivering pork 

bellies sold, shipped, or received in interstate commerce. 

III 

On December 15, 1969, the respondents entered into the transactions in pork 

belly futures specified in the tabulation below, which transactions were wash 

sales or were of the character of wash sales. In entering into the said 

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

understanding or arrangement that reciprocal and offsetting purchases and sales 

would be made at specified prices whereby a profit of $ 19,500.00 would be 

reported to respondent Barclay's account and a loss of the same amount would be 

reported to respondent Feldman's account. 

100> >101> 

Buying Quantity (1970) Broker Customer (No. of Future Price 

contracts) Leaven Barclay 50 February $ 43.30

O'Grady Barclay 50 March 42.70

 

O'Grady Feldman 50 February 43.95

Leaven Feldman 50 March 43.35

Buying Selling Spread 

Broker Broker Customer Time Difference

Leaven O'Grady Feldman 12:24 60 points

O'Grady Leaven Feldman 12:24 60 points

 O'Grady Leaven Barclay 12:26 60 points

Leaven O'Grady Barclay 12:26 60 points 

IV 

By reason of the facts set forth in this 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 wilful 

violation of section 1.38 of the regulations issued under the Act (17 CFR 1.38). 

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. 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 
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will be held at 10:00 a.m., local time, on November 10, 1971, 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 appropriate order should not 

be issued in accordance with the Commodity Exchange Act, (1) suspending or 

revoking the registrations of respondents O'Grady, Leaven and Feldman as floor 

brokers, (2) suspending or revoking the registrations of respondents Time 

Trading Co. and Rittenhouse Investments, Inc., as futures commission merchants, 

(3) 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 

(4) directing that the respondents 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. 

Sept 10, 1971 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

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