Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: NATHAN BARASH 

DOCKET NUMBER: STIPULATION 8 

DATE: OCTOBER 22, 1948 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Nathan Barash 

Stipulation of Compliance under the Commodity Exchange Act No. 8 

WHEREAS, the Secretary of Agriculture has reason to believe that Nathan 

Barash, registered as a futures commission merchant under the Commodity Exchange 

Act, as amended, (hereinafter called the Act), has violated Sec. 4d(2) of the 

Act by virtue of failure to properly treat and deal with money which he received 

to margin commodity contracts of customers, and 

WHEREAS, no complaint with respect to such violations has been issued, and 

WHEREAS, the said Nathan Barash desires to enter into a stipulation of 

compliance pursuant to the provisions of Section 0.4 (a) of the Rules of 

Practice under the Act, 

NOW, THEREFORE, the said Nathan Barash admits that the following facts are 

true: 

(1) During the period from January 1, 1948, through June 30, 1948, Nathan 

Barash acting as a futures commission merchant received money from customers for 

the purpose of margining and guaranteeing the trades of such customers in 

commodity futures and failed to treat and deal with such money as belonging to 

such customers. 

(2) The said Nathan Barash commingled the funds referred to in (1) above with 

his own funds and used such funds to secure or extend credit to other customers 

whose accounts were in deficit. 

(3) The principal account which was financed by funds belonging to other 

customers was the account of the wife of Nathan Barash, carried in her maiden 

name "Nattie Einhern." This account operated in deficit throughout substantially 

the whole period from January through June 1948. The deficit figures in the 

account as of each month-end being as follows: 

January 31, 1948 - $ 1,222.00 

February 28, 1945 - 2,144.73 

March 31, 1948 - 3,297.25 

April 30, 1948 - 4,397.00 

May 29, 1948 - 5,460.00 

June 30, 1948 - 6,569.00 

(4) During the period from January through June 1948, the said Nathan Barash 

frequently took funds which had been received by him to margin commodity 

transactions of his customers and used such funds for personal purposes, without 

keeping an accurate accounting of such withdrawals or making proper entries on 

his records to reflect the facts. 
Page 2 

(5) As a result of the improper handling of customers' funds, described in 

paragraph (1) to (4) above, the amount of money in segregation to numerous 

occasions during the period from January through June 1948 was insufficient to 

cover the 

amount deposited by [ILLEGIBLE TEXT] to commodity customers. The deficit in 

such [ILLEGIBLE TEXT] funds and [ILLEGIBLE TEXT] aggregated not less than the 

[ILLEGIBLE TEXT] shown below, on the dates indicated: 

February 28, 1948 - $ 2,171.95 

March 31, 1948 - 2,047.18 

April 30, 1948 - 708.23 

In addition to admitting the foregoing facts, the said Nathan Barash does 

hereby agree to discontinue all such acts and practices, and all other acts and 

practices which are in violation of the Commodity Exchange Act, as amended; does 

specifically agree to treat and deal with customers' margin funds and funds 

according to customers in the manner required by Sec. 4d(2) of the Act; and does 

further specifically agree to keep and maintain the books and records relating 

to such customers' funds in the form and manner prescribed by the regulations 

promulgated pursuant to the Commodity Exchange Act. The said Nathan Barash 

further agrees that this stipulation shall be admissible as evidence of acts and 

practices in violation of the Commodity Exchange Act, as amended, in any 

subsequent proceeding brought against the said Nathan Barash under the 

provisions of the said Act. 

Done at Chicago, Illinois, 

this 22 day of October 1948. 

/s/ Nathan Barash 

Nathan Barash 

Witnessed by /s/ Albert C. Christian 

/s/ A. R. Grosstophan 

LOAD-DATE: June 16, 2008 
Page 3