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Commodity Futures Trading Commission 

CEA CASES 

NAME: HARNEY, BURNS INC., JOHN T. FONTANA, ROBERT O. INGAL, AND A. JAMES COMENZO 

CITATION: 28 Agric. Dec. 103 

DOCKET NUMBER: 127 

DATE: FEBRUARY 25, 1969 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 12,283) 

In re HARNEY, BURNS INC., JOHN T. FONTANA, ROBERT O. INGAL, and A. JAMES 

COMENZO. CEA Docket No. 127. Decided February 25, 1969. 

Stipulation as to Robert O. Ingal -- Undersegregation -- Records requirements 

-- Denial of trading privileges

Respondent Robert O. Ingal consented to the issuance of an order denying 

trading privileges to him on all the contract markets for a period of 90 days 

for his actions as an officer of the corporate respondent resulting in 

undersegregation of customers' funds, the making of false records which 

purported to show that sufficient funds were held in segregated accounts to pay 

all credits and equities due customers and the failure to prepare records as of 

the close of the market of each business day of the amounts required to be in 

segregated accounts. 

Earl L. Saunders for Commodity Exchange Authority. 

Robert L. Cohen and Louis J. Martine, New York, N.Y., for respondent Robert 

O. Ingal. 

Decision by Thomas J. Flavin, Judicial Officer 

PRELIMINARY STATEMENT

This is an administrative proceeding under the Commodity Exchange Act (7 

U.S.C. 1 et seq.), instituted by a complaint and notice of hearing issued under 

section 6(b) of the act (7 U.S.C. 9) by the Acting Secretary of Agriculture. 

Respondent Robert O. Ingal is one of four respondents in this proceeding. 

The complaint charges the said respondent with wilfully violating sections 4d 

and 4g of the Commodity Exchange Act (7 U.S.C. 6d, 6g) and sections 1.20, 1.21, 

1.22, 1.23 and 1.32 of the regulations issued under the act (17 CFR 1.20, 1.21, 

1.22, 1.23, 1.32). 

No hearing has been held with respect to any of the four respondents. 

Consent orders against all respondents except Robert O. Ingal have heretofore 

been entered, concluding the proceeding as against such respondents. 

On February 20, 1969, respondent Robert O. Ingal withdrew his answer 

previously filed and submitted a stipulation under section 0.4(b) of the rules 

of practice, in which he admits, for the purposes of this proceeding, the facts 

hereinafter set forth, waives hearing on the charges and consents to the entry 

of the order contained herein. 

FINDINGS OF FACT

1. Respondent Harney, Burns Inc., a New York corporation, was at all times 

material herein, a registered futures commission merchant under the Commodity 

Exchange Act. 
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2. Respondent Robert O. Ingal, an individual, was at all times material 

herein the vice-president of respondent Harney, Burns Inc. and one of its 

principal stockholders. 

3. The acts and transactions hereinafter described were ordered and directed 

by or carried out by means of the acts of respondent Robert O. Ingal and other 

officers of the respondent corporation. 

4. Respondent Harney, Burns Inc., in the normal course of its business as a 

futures commission merchant, carried accounts for customers who traded in 

commodity futures subject to the provisions of the Commodity Exchange Act. In 

connection therewith, the said respondent had to its credit with a bank or other 

depository sums of money in varying amounts, held in segregated account and 

identified as customers' funds, representing deposits of margins by and trading 

profits accruing to such customers. 

5. On December 29, 1964, and again on December 30, 1964, respondent Harney, 

Burns Inc. was undersegregated in an amount of approximately $ 4,000, that is, 

the total amount of customers' funds held in segregation, as described in 

Finding of Fact 4 hereof, was insufficient, by the aforesaid sum, to pay all 

credits and equities due to such customers. In connection therewith, respondent 

Harney, Burns Inc. prepared and maintained false records which purported to show 

that sufficient funds were held in segregated accounts to pay all credits and 

equities due its customers. 

6. On each business day during the period from March 5, 1965, through March 

31, 1965, respondent Harney, Burns Inc. was undersegregated in amounts ranging 

from approximately $ 15,000 on March 26, 1965, to approximately $ 27,000 on 

March 15, 1965, that is, the total amount of funds held in segregation, as 

described in Finding of Fact 4 hereof, was insufficient by such amounts to pay 

all credits and equities due to such customers. In connection therewith, 

respondent Harney, Burns Inc. prepared and maintained false records which 

purported to show that sufficient funds were held in segregated accounts to pay 

all credits and equities due its customers. 

7. On each business day during the period from April 1, 1965, through April 

8, 1965, respondent Harney, Burns Inc. was undersegregated in amounts ranging 

from approximately $ 6,000 on April 8, 1965, to approximately $ 13,000 on April 

1, 1965, that is, the total amount of funds held in segregation, as described in 

Finding of Fact 4 hereof, was insufficient by such amounts to pay all credits 

and equities due to such customers. During such period, respondent Harney, 

Burns Inc. failed to prepare and maintain a record as of the close of the market 

on each business day of the amount of money, securities and property required to 

be in segregated account in order to pay all credits and equities due to its 

customers. 

CONCLUSIONS

By reason of the facts set forth in the Findings of Fact, it is concluded 

that, as charged in the complaint, respondent Robert O. Ingal wilfully violated 

sections 4d and 4g of the Commodity Exchange Act (7 U.S.C. 6d, 6g) and sections 

1.20, 1.21, 1.22, 1.23 and 1.32 of the regulations thereunder (17 CFR 1.20, 

1.21, 1.22, 1.23, 1.32). 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the stipulation and the terms of 

the order to which respondent Robert O. Ingal proposes to consent, and that they 

believe the proposed sanction would be adequate and would constitute a 

satisfactory disposition of the case as against him, serve the public interest, 

and effectuate the purposes of the Commodity Exchange Act. The complainant 

recommends, therefore, that the stipulation and waiver be accepted and the 

proposed order be issued. It is so concluded. 

ORDER
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Effective on the thirtieth day after the date of entry of this order, 

respondent Robert O. Ingal is prohibited from trading on or subject to the rules 

of any contract market for a period of ninety (90) days, and all contract 

markets shall refuse all trading privileges to him during this period, such 

prohibition and refusal to apply to all trading done and positions held by him, 

directly or indirectly. 

A copy of this decision and order shall be served upon the said respondent 

and upon each contract market. 

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