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Commodity Futures Trading Commission 

CEA CASES 

NAME: SYDNEY MADUFF, ROY SIMMONS, JOSEPH SIEGEL, AND THE SIEGEL TRADING CO., 

INC. 

CITATION: 24 Agric. Dec. 1456 

DOCKET NUMBER: 125 

DATE: NOVEMBER 4, 1965 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 10,216) 

In re SYDNEY MADUFF, ROY SIMMONS, JOSEPH SIEGEL, AND THE SIEGEL TRADING CO., 

INC. CEA Docket No. 125. Decided November 4, 1965. 

Manipulation of futures commodity -- Suspension of registrations and denial 

of trading privileges -- Stipulation

The activities of respondents in attempting to manipulate the price of a 

commodity for future delivery are violations of the act for which suspension of 

their registrations under the act and denial of trading privileges on the 

contract markets are ordered, except that the suspension of the corporate 

respondent as a future commission merchant is held in abeyance. 

Mr. Earl L. Saunders for Commodity Exchange Authority. 

Mr. Harry H. Fortes, Chicago, Ill., for respondent Sydney Maduff. 

Arvey, Hodes & Mantynband, Chicago, Ill., for respondent Roy Simmons. 

Max & Herman Chill, Chicago, Ill., for respondents Joseph Siegel and The 

Siegel Trading Co., Inc. 

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). The complaint charges the respondents with 

attempting to manipulate the price of the January 1964 frozen whole egg future 

on the Chicago Mercantile Exchange in violation of sections 6(b) and 9 of the 

Commodity Exchange Act (7 U.S.C. 9 and 13). 

No hearing has been held with respect to this proceeding. Each of the 

respondents has filed a stipulation under section 0.4 (b) of the rules of 

practice (17 CFR 0.4 (b)) in which such respondent withdraws the answer 

previously filed, admits for the purposes of this proceeding and for such 

purposes only the facts contained herein under "Findings of Fact," waives 

hearing on the charges, and consents to the entry of the order hereinafter set 

forth. 

FINDINGS OF FACT

1. Respondent Sydney Maduff, an individual whose address is 110 North 

Franklin Street, Chicago, Illinois, is now and was at all times material herein 

a member of the Chicago Mercantile Exchange and a registered floor broker under 

the Commodity Exchange Act. 

2. Respondent Roy Simmons, an individual whose address is 141 West Jackson 

Boulevard, Chicago, Illinois, is now and was at all times material herein a 
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member of the Chicago Mercantile Exchange and a registered floor broker under 

the Commodity Exchange Act. 

3. Respondent Joseph Siegel, an individual whose address is 141 West Jackson 

Boulevard, Chicago, 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 president of respondent The Siegel Trading Co., Inc. 

4. Respondent The Siegel Trading Co., Inc., a corporation with offices at 141 

West Jackson Boulevard, Chicago, Illinois, 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. 

5. The Chicago Mercantile Exchange, hereinafter referred to as the exchange, 

is now and was at all times material herein a board of trade duly designated as 

a contract market under the Commodity Exchange Act. 

6. The futures transactions referred to herein relate to the January 1964 

frozen whole egg future on the Chicago Mercantile Exchange. A frozen whole egg 

futures contract on the exchange is a contract for 30,000 pounds of frozen whole 

eggs. 

7. On January 23, 1964, the respondents entered into an agreement, 

arrangement or understanding among themselves whereby they were to take action 

designed to cause artificial or arbitrary prices in the January 1964 frozen 

whole egg future on the exchange. As part of the action to be taken under such 

agreement, arrangement or understanding, the respondents, acting through 

respondent Maduff, were to purchase on the exchange on January 24, 1964, the 

number of contracts of the January 1964 frozen whole egg future which they 

considered to be sufficient to enable them to cause an artificial or arbitrary 

price in such future. 

8. On January 24, 1964, respondent Maduff, acting for and on behalf of the 

respondents, pursuant to, and in furtherance of, the agreement, arrangement or 

understanding referred to in paragraph 7 above, purchased in transactions on the 

exchange 74 contracts of the January 1964 frozen whole egg future at a price of 

30.25 cents per pound. 

CONCLUSIONS

The facts admitted by the respondents are verbatim the factual allegations 

contained in the complaint, and these have been adopted as the findings of fact 

in this proceeding. From these findings it is obvious that the respondents 

attempted to manipulate the price of a commodity for future delivery on or 

subject to the rules of a board of trade in violation of sections 6(b) and 9 of 

the Commodity Exchange Act (7 U.S.C. 9 and 13). 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the stipulations and waivers, and 

the terms of the suggested order, and that they believe that the proposed 

sanctions are adequate, and that the prompt entry, without further proceedings, 

of the order to which the respondents have consented will constitute a 

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

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

therefore, that the stipulations and waivers submitted by the respondents be 

accepted, and that the proposed order be issued. It is so concluded. 

Respondents Sydney Maduff, Joseph Siegel and The Siegel Trading Co., Inc. 

have requested that any order which may be entered against them be made 

effective as soon as possible, and the complainant has no objection to granting 

this request. Respondent Roy Simmons has not so requested. There appears to be 

no reason why the sanctions should run concurrently, and the sanctions as to 

respondents Sydney Maduff, Joseph Siegel and The Siegel Trading Co., Inc. will 

be made effective on the fifteenth day after the date of the order, while the 

sanctions as to respondent Simmons will take effect after the customary period. 

ORDER
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Effective on the fifteenth day after the date of this order, the registration 

of respondent Sydney Maduff as a floor broker under the act is suspended for a 

period of thirty (30) days and all contract markets shall refuse all trading 

privileges to respondent Sydney Maduff during this period, such refusal to apply 

to all trading done and all positions held by the said respondent directly or 

indirectly, Provided, However, that the final ten (10) days of said period of 

suspension of registration and refusal of trading privileges shall be held in 

abeyance and shall not become effective unless, after a complaint and hearing in 

accordance 

with established procedure, respondent Sydney Maduff shall be found to have 

violated the Commodity Exchange Act within one year from the date of the entry 

of this order, in which event the Secretary of Agriculture may, without further 

notice to respondent Sydney Maduff, issue a supplemental order making effective 

forthwith the ten (10) day remainder of the said period of suspension of 

registration and refusal of trading privileges. 

Effective on the thirtieth day after the date of this order, the registration 

of respondent Roy Simmons as a floor broker under the act is suspended for a 

period of thirty (30) days and all contract markets shall refuse all trading 

privileges to respondent Roy Simmons during this period, such refusal to apply 

to all trading done and all positions held by the said respondent directly or 

indirectly. 

Effective on the fifteenth day after the date of this order, the registration 

of respondent Joseph Siegel as a floor broker under the act is suspended for a 

period of thirty (30) days and all contract markets shall refuse all trading 

privileges to respondent Joseph Siegel during this period, such refusal to apply 

to all trading done and all positions held by the said respondent directly or 

indirectly. 

Effective on the fifteenth day after the date of this order, all contract 

markets shall refuse all trading privileges to respondent The Siegel Trading 

Co., Inc., in connection with the said firm's own account, for a period of 

thirty (30) days, such refusal to apply to all trading done and positions held 

by the said The Siegel Trading Co., Inc., for its own account directly or 

indirectly, and effective on the same date, the registration of respondent The 

Siegel Trading Co., Inc. as a futures commission merchant is hereby suspended 

for a period of thirty (30) days, Provided, However, that the aforesaid 

suspension of registration as futures commission merchant shall not become 

effective unless, after a complaint and hearing in accordance with established 

procedure, respondent The Siegel Trade Co., Inc. 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 The Siegel Trading Co., Inc., issue a supplemental order 

making effective forthwith the aforeside suspension of registration as futures 

commission merchant. 

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

and on each contract market. 

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