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Commodity Futures Trading Commission 

CEA CASES 

NAME: BECKER BROKERAGE CO., SAMUEL H. BECKER, AND PHILIP D. BECKER 

CITATION: 23 Agric. Dec. 290 

DOCKET NUMBER: 111 

DATE: MARCH 23, 1964 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 8969) 

In re BECKER BROKERAGE CO., SAMUEL H. BECKER, AND PHILIP D. BECKER. CEA Docket 

No. 111. Decided March 23, 1964. 

Egg Futures -- Suspension of Trading Privileges and Registration -- Consent

The registration of Philip D. Becker as a floor broker and his trading 

privileges are suspended for a period of 15 days for permitting a customer of 

respondent futures commission merchant to place orders in egg futures without 

identifying accounts for which orders placed and to allocate orders to advantage 

of such customer and to the disadvantage of others. 

The registration of Becker Brokerage Co., as a futures commission merchant 

and the firm's trading privileges are ordered suspended for 15 days, but these 

sanctions are not to become effective unless firm should be found in violation 

of the act within a one-year period. 

The complaint against Samuel H. Becker is dismissed. 

Mr. Earl L. Saunders for Commodity Exchange Authority. Mr. Lee A. Freeman, of 

Chicago, Illinois, for respondents. 

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 issued under § 6 (b) of the Act 

(7 U.S.C. § 9) by the Assistant Secretary of Agriculture. The complaint alleges 

that the respondents violated § 4b(A) of the Act (7 U.S.C. § 6b(A)), and § 1.35 

of the regulations issued under the Act (17 CFR 1.35). 

No hearing has been held with respect to this proceeding. On March 2, 1964, 

respondents Becker Brokerage Co. and Philip D. Becker withdrew the answer which 

they had previously filed and submitted a stipulation under § 0.4 (b) of the 

rules of practice (17 CFR 0.4(b)), in which they admit the facts hereinafter set 

forth, propose that the complaint be dismissed as to respondent Samuel H. 

Becker, waive hearing, and consent to the entry of the order contained herein. 

Also in such stipulation respondents Becker Brokerage Co. and Philip D. Becker 

state that subsequent to the issuance of the complaint in this proceeding, they 

paid the total sum of $ 13,244 to the customers hereinafter referred to in 

Finding of Fact 7, and that the said respondents believe that such sum is 

sufficient to reimburse such customers for any losses they 

may have suffered by reason of the allocation of trades as described in Finding 

of Fact 7. 

FINDINGS OF FACT
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1. Respondent Becker Brokerage Co. is an Illinois corporation with its 

principal office and place of business at 1008 Randolph Street, Chicago 7, 

Illinois. The said corporation is now and was at all times material herein a 

clearing member of the Chicago Mercantile Exchange, and a registered futures 

commission merchant under the Commodity Exchange Act. 

2. Respondent Philip D. Becker, an individual, whose business address is 1008 

West Randolph Street, Chicago 7, Illinois, is now and was at all times material 

herein a member of the Chicago Mercantile Exchange, a registered floor broker 

under the Commodity Exchange Act, and vice-president of respondent Becker 

Brokerage Co. 

3. The acts and transactions on the part of respondent Becker Brokerage Co. 

hereinafter described were carried out under the direction, supervision and 

control of respondent Philip D. Becker in his capacity as an officer of the 

respondent corporation. 

4. The Chicago Mercantile Exchange is now and was at all times material 

herein a duly designated contract market under the Commodity Exchange Act. 

5. The orders and the futures transactions referred to herein relate to 

frozen whole egg futures and to shell egg futures on the Chicago Mercantile 

Exchange. Such contracts could have been used for (a) hedging transactions in 

interstate commerce in eggs or the products or byproducts thereof, (b) 

determining the price basis of transactions in interstate commerce in eggs, and 

(c) delivering eggs sold, shipped, or received in interstate commerce for the 

fulfillment of such futures contracts. 

6. During the period June 22 through October 4, 1962, respondent Becker 

Brokerage Co., in its capacity as futures commission merchant, carried 40 

customers' accounts which were controlled under powers of attorney by one Irving 

Eisenberg, who during the period August 30 through October 4, 1962, also carried 

a personal trading account with Becker Brokerage Co. 

7. During the period August 30 through October 4, 1962, respondent Philip D. 

Becker permitted Irving Eisenberg to place 

orders for the execution of transactions in egg futures on the Chicago 

Mercantile Exchange without in each instance securing the identity of the 

account or accounts for which such orders were placed, and in some instances 

after the orders were executed permitted Irving Eisenberg to allocate the 

resulting transactions between his own account and the controlled accounts. 

Such allocations were to the detriment of the customers and to the advantage of 

Eisenberg. 

CONCLUSIONS

Section 0.4(b) of the rules of practice under the Commodity Exchange Act (17 

CFR 0.4(b)) provides as follows: 

(b) Consent Order. At any time after the issuance of the complaint and prior 

to the hearing in any proceeding, the Secretary, in his discretion, may allow 

the respondent to consent to an order. In so consenting, the respondent must 

submit, for filing in the record, a stipulation or statement in which he admits 

at least those facts necessary to the Secretary's jurisdiction and agrees that 

an order may be entered against him. Upon a record composed of the complaint 

and the stipulation or agreement consenting to the order, the Secretary may 

enter the order consented to by the respondent, which shall have the same force 

and effect as an order made after oral hearings. 

The facts admitted by respondents Becker Brokerage Co., and Philip D. Becker, 

and set forth in the findings of fact, are sufficient to subject each of them to 

the jurisdiction of the Secretary of Agriculture. 

The complainant has filed a recommendation which recites that it has 

carefully considered the stipulation and the terms of the order to which the 
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said respondents propose to consent. It is the opinion of the complainant that 

under the circumstances the proposed sanctions would be adequate, and that the 

prompt entry of such an order without further proceedings would constitute a 

satisfactory disposition of this case, serve the public interest, and effectuate 

the purposes of the Commodity Exchange Act. The complainant, therefore, 

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

dismissed insofar as it relates to respondent Samuel H. Becker, and that the 

proposed order be issued. It is so concluded. 

ORDER

The registration of respondent Philip D. Becker as a floor broker under the 

Commodity Exchange Act is hereby suspended for a period of 15 days, effective on 

the 30th day after the date of entry of this order, and all contract markets are 

hereby directed to refuse all trading privileges to the said Philip D. Becker 

for the said period of 15 days, such refusal to apply to all trading done and 

positions held by the said Philip D. Becker, directly or indirectly. 

The registration of respondent Becker Brokerage Co. as a futures commission 

merchant under the Commodity Exchange Act is hereby suspended for a period of 15 

days, and all contract markets are hereby directed to refuse all trading 

privileges to the said Becker Brokerage Co. for the said period of 15 days, 

Provided, However, that the aforesaid suspension of registration and refusal of 

trading privileges shall not become effective unless, after complaint, and 

hearing in accordance with established procedure, respondent Becker Brokerage 

Co. should be found to have violated the Commodity Exchange Act within one year 

from the date of entry of this order, in which event the Secretary of 

Agriculture may, without further notice to respondent Becker Brokerage Co., 

issue a supplemental order making effective forthwith the aforesaid suspension 

of registration and refusal of trading privileges. 

The complaint is dismissed insofar as it relates to respondent Samuel H. 

Becker. 

A copy of this Decision and Order shall be served on each of the respondents 

and on each contract market. 

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