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Commodity Futures Trading Commission 

CEA CASES 

NAME: WILLARD E. PLATT, GEORGE F. FREY, JR., OLIVER M. HIBBERD, PATRICK M. SHEA, 

HENRY C. GATLIN, F & G COMMODITIES, AND RALPH N. PETERS & CO. 

CITATION: 25 Agric. Dec. 463 

DOCKET NUMBER: 112 

DATE: APRIL 11, 1966 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 10,498) 

In re WILLARD E. PLATT, GEORGE F. FREY, JR., OLIVER M. HIBBERD, PATRICK M. SHEA, 

HENRY C. GATLIN, F & G COMMODITIES, AND RALPH N. PETERS & Co. CEA Docket No. 

112. Decided April 11, 1966. 

Stipulation as to Patrick M. Shea -- False reports and records -- Suspension 

of registration -- Denial of trading privileges

The registration of Patrick M. Shea as a floor broker is suspended for 10 

days and his trading privileges on the contract markets are denied for a like 

period for his activities in causing false records to be entered and false 

reports to be made in connection with the execution of futures transactions and 

deceiving the person from whom the orders for such transactions had been 

received and in failing to keep full and complete records of his futures 

transactions. 

Mr. Earl L. Saunders for Commodity Exchange Authority. 

Cusack & Cusack, of Chicago, Ill., for respondent Patrick M. Shea. 

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 Assistant Secretary of Agriculture. 

Respondent Patrick M. Shea is one of seven respondents named in the 

complaint. The complaint charges that respondent Shea, a registered floor 

broker under the Commodity Exchange Act and a member of the Chicago Board of 

Trade, caused false records to be entered and made false reports in connection 

with the execution of commodity futures transactions and deceived the person 

from 

whom the orders for such transactions had been received, in willful violation of 

section 4b of the Commodity Exchange Act (7 U.S.C. 6b), and that he failed to 

keep full and complete records of futures transactions, in willful violation of 

section 4g of the act (7 U.S.C. 6g) and section 1.35 of the regulations 

thereunder (17 CFR 1.35). 

An oral hearing was held with respect to respondent Shea and respondent 

Oliver M. Hibberd in Chicago, Illinois, on October 13 and 14, 1965. n1 

Subsequent to the completion of the hearing, respondent Shea filed a stipulation 

in which he withdraws his answer previously filed, admits the facts hereinafter 

set forth, waives any further proceedings in the matter including issuance of a 

referee's report, and consents to the entry of the order contained herein. 
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n1 Prior to the hearing, the proceeding insofar as it related to 

respondents Frey, Platt, Gatlin and Ralph N. Peters & Co. was terminated by 

the entry of consent orders (24 Agric. Dec. 93, 97, 102, 105 (24 A.D. 93, 

97, 102, 105)). The case against respondent F & G Commodities is being 

handled as a default. 

FINDINGS OF FACT

1. The Board of Trade of the City of Chicago, hereinafter called the Chicago 

Board of Trade, was at all times material herein a duly designated contract 

market under the Commodity Exchange Act. 

2. Respondent Patrick M. Shea, an individual whose business address in 141 

West Jackson Boulevard, Chicago, Illinois, is now and was at all times material 

herein a registered floor broker under the Commodity Exchange Act and a member 

of the Chicago Board of Trade. 

3. The transactions referred to herein relate to contracts for the purchase 

or sale of May 1963 soybean oil futures on the Chicago Board of Trade. Such 

contracts could have been used for (a) hedging transactions in interstate 

commerce in soybean oil or the products or byproducts thereof, or (b) 

determining the price basis of transactions in interstate commerce in soybean 

oil, or (c) delivering soybean oil sold, shipped, or received in interstate 

commerce for the fulfillment of such futures contracts. A soybean oil futures 

contract on the Chicago Board of Trade calls for the delivery of one tank car of 

60,000 pounds of soybean oil. 

4. On December 18, 1962, on the floor of the Chicago Board of Trade, 

respondent Shea, acting in his capacity as floor broker for Hayden, Stone & Co. 

Incorporated, entered into a transaction 

with another floor broker, Oliver M. Hibberd, whereby respondent Shea sold and 

Hibberd purchased 17 cars of May 1963 soybean oil futures at a price of 8.94 

cents per pound. With respect to such transaction, respondent Shea recorded on 

his trading card the name "Staley" as the name of the opposite clearing member 

and indicated thereon that Oliver M. Hibberd was the opposite executing floor 

broker. Thereafter, on December 18, 1962, respondent Shea altered the entries 

on his trading card pertaining to the 17 car transaction between him and Oliver 

M. Hibberd so as to purport to show that F & G Commodities was the name of the 

opposite clearing member with whom such transaction was made and that another 

floor broker, Willard E. Platt, was the opposite executing floor broker in such 

transaction. At the time respondent Shea so altered his trading card, he knew 

that the 17-car transaction had not been made with F & G Commodities as opposite 

clearing member or with Willard E. Platt as opposite executing floor broker. 

5. After altering his trading card as described in finding 4 above, 

respondent Shea delivered such card to his principal, Hay-den, Stone & Co. 

Incorporated. In accordance with the usual course of business, Hayden, Stone & 

Co. Incorporated maintained such card as a part of its records and as a record 

of respondent Shea. Based on the information contained on such card, Hayden, 

Stone & Co. Incorporated showed in its records that the transaction referred to 

in finding 4 above had been made with F & G Commodities as opposite clearing 

member, when, in truth and in fact, such was not the case. 

CONCLUSIONS

The facts admitted by respondent Shea in his stipulation have been adopted as 

the findings of fact herein. Such facts demonstrate that the said respondent 

wilfully violated sections 4b and 4g of the Commodity Exchange Act (7 U.S.C. 6b, 

6g) and section 1.35 of the regulations thereunder (17 CFR 1.35), as charged in 

the complaint. 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the stipulation and waiver 
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submitted by respondent Shea and the terms of the order to which he proposes to 

consent. The administrative officials believe that the proposed sanctions would 

be adequate and that the prompt entry of such an order will constitute a 

satisfactory disposition of this case as to respondent Shea, 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

The registration of respondent Patrick M. Shea as a floor broker is hereby 

suspended for a period of ten (10) days, effective on the thirtieth day after 

the date of entry of this order, and all contract markets shall refuse all 

trading privileges to the said Patrick M. Shea for the said period of ten days, 

such refusal to apply to all trading done and positions held by him whether for 

his own account or for any account owned or controlled by him, directly or 

indirectly. 

A copy of this decision and order shall be served upon each of the parties 

and upon each contract market. 

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