Victims of commodities fraud report the loss of thousands of dollars under the promise of high investment return by high-pressure salespersons who misrepresent and falsify commodities. Perpetrators of such fraud testify of extensive involvement in fraudulent commodities enterprises over long periods with little fear of interference from the authorities. Representatives of the Commodity Futures Trading Commission, the Federal agency responsible for regulating commodities investment operations, report on the high volume of fraudulent dealings in this area and the Commission's inability, with its limited resources, to suppress and deter such activity significantly. State security commissioners generally report frustration in not having meaningful jurisdiction over commodities fraud, given the Federal legislation that tends to preempt State involvement. Both State and Federal officials favor greater involvement of the States in combatting commodities fraud because of the extent of the problem. Prepared statements and exhibits are provided.