Release: #3871-95

For Release: October 31, 1995

CFTC FILES SIX-COUNT ADMINISTRATIVE COMPLAINT AGAINST

GARY K. BIELFELDT, CARLOTTA BIELFELDT, AND BIELFELDT & CO

Complaint Alleges Violations of CFTC&39;s Speculative Limits for

Corn Futures Trading, and Filing False Reports with the CFTC, Among Other Things

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) today announced the filing of a six-count administrative complaint against Gary K. Bielfeldt and Carlotta Bielfeldt of Peoria, Illinois, and Bielfeldt & Co., of Peoria and Chicago, Illinois.

The CFTC complaint alleges that from October 8, 1993, to November 19, 1993, Gary Bielfeldt violated the CFTC's speculative limits for corn futures trading.

Specifically, the complaint charges Gary Bielfeldt, who has been registered as a floor broker with the CFTC since January 1, 1982, with violating the speculative limits in two ways:

• by acting pursuant to an express or implied agreement or understanding with his daughters, Linda Bielfeldt and Karen Gray, and several business and social acquaintances (count 1); and
• by controlling the trading in the commodity futures trading accounts of Carlotta Bielfeldt, his wife, who has never been registered with the CFTC in any capacity (count 2).

The remaining counts of the complaint (counts 3-6) charge the respondents with reporting violations: Gary Bielfelt is charged, as a controlling person of Bielfeldt & Co., a futures commission merchant (FCM) in which he owns 95 percent of the stock and for which he acts as the managing partner, with filing false reports with the CFTC by:

• filing a false CFTC Form 102 in that the Form 102 filed by Bielfeldt & Co. on November 8, 1993, identified Carlotta Bielfeldt as a reportable trader, but failed to reflect the fact that Gary Bielfeldt controlled the trading in her accounts; and
• filing false 01 Reports that failed to combine the net positions of the accounts controlled by Gary Bielfeldt with the positions of the accounts of Carlotta Bielfeldt controlled by Gary Bielfeldt.

Finally, Gary Bielfeldt is charged with failing to update his CFTC Form 40 to accurately reflect his control of the accounts of Carlotta Bielfeldt.

Carlotta Bielfeldt is charged with making a false statement of a material fact to the CFTC in that she signed a CFTC Form 40 that failed to identify Gary Bielfeldt as controlling her account. Bielfeldt & Co. is charged with filing a false CFTC Form 102 and false 01 Reports with the CFTC.

A public hearing is to be held within 30 days to determine whether the allegations are true and, if so, what sanctions, if any should be imposed. Possible CFTC sanctions include: civil penalties of up to $100,000 or triple the monetary gain against each respondent for each violation of the Commodity Exchange Act or CFTC regulations; trading prohibitions; suspension or revocation of registrations; and cease and desist orders.

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