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Commodity Futures Trading Commission 

CEA CASES 

NAME: JOSEPH M. DANIEL 

CITATION: 5 Agric. Dec. 819 

DOCKET NUMBER: 41 

DATE: NOVEMBER 12, 1946 

DOCUMENT TYPE: DECISION AND ORDER 

(A. D. 1350) 

 

In re JOSEPH M. DANIEL. CEA Doc. No. 41. Decided November 12, 1946. 

Suspension of Registration and Trading Privileges on Contract Markets

For respondent's failure to segregate the customer's funds and his failure to 

keep a written record of trades which he confirmed, respondent's registration 

and trading privileges on contract markets are suspended as consented to by 

respondent and recommended by the complainant in this proceeding. * 

* Reference to other points involved in this case will be found in 

Index-Digest in this issue of Agriculture Decisions. -- Ed. 

Mr. Benj. M. Holstein for complainant. Mr. Joseph M. Daniel, pro se. 

Decision by Thomas J. Flavin, Judicial Officer.

ORDER

This is a disciplinary proceeding under the Commodity Exchange Act (7 U.S.C. 

Chapter 1), instituted by a complaint issued by the Secretary of Agriculture on 

August 14, 1946. The respondent, Joseph M. Daniel, Chicago, Illinois, was 

charged with failing to segregate a customer's funds and failing to keep the 

required written record of futures trades which he confirmed. By a document 

filed on October 23, 1946, respondent waived hearing, admitted the facts, and 

consented to the issuance of an order suspending his registration and trading 

privileges for 60 days. On October 30 the Commodity Exchange Authority filed 

its recommendation of such an order. Thereafter the record was submitted to 

this office, where this order has been prepared. 

FINDINGS OF FACT

1. During May, June, July, and August, 1945, Joseph Meredith Daniel, the 

respondent, doing business at 176 West Adams Street, Chicago, Illinois, 

registered under the act as a futures commission merchant, received a total of $ 

1,329 from a customer, Harry J. Diacou, to margin and secure contracts in rye 

futures on the Chicago Open Board of Trade, a contract market, but did not keep 

the funds 

 

 

received and accruing to the customer, nor the resulting contracts, separate or 

segregated from his own funds and futures contracts. 

2. Respondent kept no written record of rye futures contracts on the Chicago 

Open Board of Trade which he confirmed to Diacou during the period abovementioned. 
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CONCLUSIONS

Respondent's failure to segregate the customer's funds violated section 4d of 

the act (7 U.S.C. 6d), and his failure to keep a written record of trades which 

he confirmed violated section 4 of the act (7 U.S.C. 6). Such violations 

authorize suspension of his registration and trading privileges on contract 

markets. Accordingly, the suspension consented to and recommended by the 

parties should be ordered. 

SANCTION

Beginning on the 30th day after this date, the registration of respondent as 

a futures commission merchant is suspended for 60 days. 

Beginning on the 30th day after this date, all contract markets shall refuse 

respondent all trading privileges thereon for a period of 60 days. 

Copies of this order shall be served on the parties and on each contract 

market. 

 

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