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Commodity Futures Trading Commission 

CEA CASES 

NAME: IRVING WEIS AND CO., IRVING WEIS, ARTHUR MARK, AND PHILLIP L. GROOVER 

DOCKET NUMBER: STIPULATION 63 

DATE: FEBRUARY 7, 1963 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Irving Weis and Co., Irving Weis, Arthur Mark, and Phillip L. Groover 

Stipulation of Compliance under the Commodity Exchange Act No. 63 

The Secretary of Agriculture has reason to believe that Irving Weis and Co., 

Irving Weis, Arthur Mark, and Phillip L. Groover have violated the provisions of 

the Commodity Exchange Act (7 U.S.C., Chapter 1) and the regulations of the 

Secretary of Agriculture promulgated thereunder. No complaint with respect to 

such violations has been issued and the said Irving Weis and Co., Irving Weis, 

Arthur Mark, and Phillip L. Groover are desirous of disposing of the matter by 

entering into a stipulation of compliance as authorized by section 0.4(a) of the 

Rules of Practice under the Commodity Exchange Act (17 CFR, 0.0-0.28). 

Therefore, the said Irving Weis and Co., Irving Weis, Arthur Mark, and Phillip 

L. Groover stipulate the following facts are true: 

1. Irving Weis and Co. is and was at all times mentioned herein a partnership 

and a registered futures commission merchant under the Commodity Exchange Act 

with an office and principal place of business at 66 Beaver Street, New York 4, 

New York. 

2. Irving Weis, Arthur Mark and Phillip L. Groover are and were at all times 

mentioned herein partners in the said Irving Weis and Co. 

3. The acts and practices variously described herein were ordered and 

directed by, or carried out under the supervision and control of, Irving Weis, 

Arthur Mark and Phillip L. Groover in their capacities as partners of Irving 

Weis and Co. 

4. On April 3, 1962, Irving Weis and Co. sold at a price of $ 60,818.78 

securities having a face value of $ 60,000 which had been purchased with 

regulated commodity customers' funds. The proceeds from this sale were 

deposited in the Irving Weis and Co. general funds account at the Morgan 

Guaranty Trust Company of New York. 

5. On August 3, 1962, Irving Weis and Co. sold at a price of $ 30,541.94 

securities having a face value of $ 30,000 which had been purchased with 

regulated commodity customers' funds. The proceeds of the sale were deposited 

in the firm's general funds bank account at the Morgan Guaranty Trust Company of 

New York. 

6. On April 3, 1962, Irving Weis and Co. transferred securities having a face 

value of $ 90,000 to an account designated on the firm's records as "Customers 

Segregated Funds -- Bonds -- Investment Account" without using regulated 

commodity customers' funds to pay for such [ILLEGIBLE TEXT]rities. From April 

3, 1962, to October 16, 1962, varying amounts of securities not purchased with 

customers' funds were so carried, and upon the sale thereof the proceeds were 

deposited in the general funds bank account of Irving Weis and Co. at the Morgan 

Guaranty Trust Company of New York. 
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Since the proceeds from the sales of the securities on April 3 and August 3, 

1962, as set forth in Items 4 and 5 above, were not deposited under the 

provisions and safeguards of section 4d (2) of the Commodity Exchange Act and 

sections 1.20, 1.21 and 1.22 of the regulations of the Secretary of Agriculture 

promulgated thereunder, and since the securities transferred to the account 

carried by Irving Weis and Co. as "Customers Segregated Funds -- Bonds -- 

Investment Account" as set forth in Item 6 above, did not represent the 

investment of customers' funds, such funds and securities did not constitute 

funds in segregation. Failure of Irving Weis and Co. to handle those funds and 

securities correctly resulted in undersegregation on 115 days between April 3 

and October 16, 1962, in amounts ranging from $ 245.16 to $ 49,590.22. That is, 

the total amount of customers' funds held in segregation was insufficient by the 

above amounts to pay all credits and equities due to customers. 

On October 9, 1962, following a discussion between the CEA auditor and an 

employee of Irving Weis & Company regarding the improper deposit of $ 30,541.94 

into the firm's general funds account, Irving Weis telephoned the Morgan 

Guaranty Trust Company and requested that they change their records to show a 

deposit of $ 30,541.94 in the segregated funds account as of August 3, 1962. 

This request was complied with and a new statement was furnished to Irving Weis 

& Company. Inasmuch as the new statement did not reflect the facts regarding 

the deposit and the balance in the account, the obtaining of such a statement 

did not alter the fact that the $ 30,541.94 was not in the segregated funds 

account from August 3 until October 9, 1962. 

The said Irving Weis and Co., Irving Weis, Arthur Mark and Phillip L. Groover 

agree to desist from such acts and practices in the future. They further 

understand and agree that this stipulation shall be admissible as evidence of 

such acts and practices in any future proceeding based upon acts or practices in 

addition to those referred to herein which may be brought by the Secretary of 

Agriculture against any of them under the provisions of the said act. They also 

understand that it is the practice of the Commodity Exchange Authority to make 

stipulations of compliance a matter of public record. 

Done at New York, New York, this 7th day of February, 1963. 

IRVING WEIS AND CO. 

By /s/ Seymour Gottlieb 

Seymour Gottlieb 

/s/ Arthur Mark 

Arthur Mark 

/s/ Phillip L. Groover 

Phillip L. Groover 

/s/ Irving Weis 

Irving Weis 

Witnessed with respect to the signatures of Irving Weis and Co. (Seymour 

Gottlieb), Arthur Mark and Phillip L. Groover, by: 

/s/ Andrew E. Seitz 

Andrew E. Seitz 

/s/ Sheldon Coopersmith 

Sheldon Coopersmith 

County of Dade 

State of Florida 

February 13, 1963 
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/s/ Ina May Upham 

Ina May Upham, Notary Public 

State of Florida at Large. 

My Commission Expires February 8, 1966. 

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