Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: JACK C. FLORA 

DOCKET NUMBER: 174 

DATE: JULY 8, 1970 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Jack C. Flora, Respondent 

CEA Docket No. 174 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent, Jack C. Flora, has violated 

the Commodity Exchange Act (7 U.S.C. Chapter 1, 1964 ed., as amended, Supp. IV, 

1969), and in accordance with the provisions of sections 6(b) and 6(c) of the 

Commodity Exchange Act (7 U.S.C. 9 and 13b. Supp. IV, 1969), this complaint and 

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

I 

The respondent, Jack C. Flora, an individual whose address is 1360 Shadow 

Lane, Fullerton, California 92631, was at all times material herein up to on or 

about March 17, 1970, an agent or employee of Simeral Commodities, Inc., which 

at all such times, was a registered futures commission merchant under the 

Commodity Exchange Act, trading in commodity futures on contract markets for the 

accounts of customers. 

II 

At all times material herein, N. E. Hess was a customer of Simeral 

Commodities, Inc., and the said firm held sums of money for him, representing 

deposits of margin by and trading profits accruing to him. 

III 

On March 2, 1970, the respondent, acting without the knowledge or consent of 

N. E. Hess, caused Simeral Commodities, Inc., to draw a check (numbered 1290) on 

the firm's segregated bank account for customers' funds, to the order of N. E. 

Hess in the sum of $ 6,000.00, and to debit such check to said Hess' account at 

Simeral Commodities, Inc. Thereafter, the respondent forged the endorsement of 

N. E. Hess on such check, negotiated it, and used the proceeds for the 

respondent's own use and benefit. 

IV 

By reason of the facts set forth in this complaint, the respondent wilfully 

violated sections 4d and 9 of the Commodity Exchange Act (7 U.S.C. 6d, 13, Supp. 

IV, 1969), and sections 1.20 and 1.21 of the regulations thereunder (17 CFR 

1.20, 1.21). 

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

served upon the respondent 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 

respondent will have twenty-five (25) days after the receipt of this complaint 

in which to file with the Hearing Clerk, 
Page 2 

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 

purpose of this proceeding. Failure to file an answer will constitute an 

admission of all allegations of this complaint and waiver of hearing. The 

filing of answer in which all of the material allegations of fact contained in 

this complaint are admitted likewise shall constitute a waiver of hearing unless 

a hearing is requested. The respondent is hereby notified that unless a hearing 

is waived, a hearing will be held at 10:00 a.m., local time, on August 26, 1970, 

in Los Angeles, California, at the place therein to be specified later, before a 

referee 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) prohibiting the respondent from trading on or subject to the rules of 

any contract market, and directing that all contract markets refuse all trading 

privileges to the respondent for such period of time as may be determined, and 

(2) directing that the respondent shall cease and desist from violating the 

Commodity Exchange Act in the manner alleged herein. 

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

respondent at least twenty-five (25) days prior to the date set for hearing. 

Done at Washington, D. C. 

July 8, 1970 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

LOAD-DATE: June 16, 2008 
Page 3