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Commodity Futures Trading Commission 

CEA CASES 

NAME: JOSEPH R. AWAD 

DOCKET NUMBER: 79 

DATE: MARCH 6, 1958 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Joseph R. Awad, Respondent 

CEA Docket No. 79 

Complaint and Notice of Hearing under Section 6(b) of the Commodity Exchange 

Act 

There is reason to believe that the respondent, Joseph R. Awad has violated 

the provisions of the Commodity Exchange Act (7 U.S.C. 1952 ed., Chapter 1), and 

the rules and regulations of the Secretary of Agriculture made pursuant thereto 

(17 CFR, Part 1). In accordance with the provisions of section 6(b) of the 

Commodity Exchange Act (7 U.S.C. 1952 ed. $ 9), this complaint and notice of 

hearing is issued alleging as follows: 

I 

Respondent Joseph R. Awad is an individual with an office and place of 

business at 507 Fifth Avenue, Suite 300, New York 17, New York, c/o J.R.A. 

International Company. 

II 

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

Board of Trade, has been at all times material to this complaint, and is now, a 

duly designated contract market under the Commodity Exchange Act. 

III 

On July 9 and July 10, 1957, respondent Joseph R. Awad had a net long open 

contract position in September 1957 lard futures on the Chicago Board of Trade 

of 1,040,000 pounds and 1,600,000 pounds, respectively. By reason of the fact 

that such quantities were equal to or in excess of 1,000,000 pounds, said 

respondent was in reporting status and was required to report to the Commodity 

Exchange Authority with respect to all transactions executed and all open 

contract positions held for his account in all lard futures on all boards of 

trade (exchanges) during the said period, and with respect to all such 

transactions by reason of which said respondent's position was reduced below 

reporting levels, as provided in section 4i of the Commodity Exchange Act (7 

U.S.C. 1952 ed., § 6i) and sections 9.10, 9.11, 9.12, and 9.21 of the rules and 

regulations thereunder (17 CFR, 9.10, 9.11, 9.12; 17 CFR, 1957 Supp., 9.21). 

IV 

On July 9 and July 10, 1957, while respondent was in reporting status as 

described in paragraph III above, and on the business day immediately 

thereafter, July 11, 1957, when respondent's position was reduced below 

1,000,000 pounds, transactions in lard futures on the Chicago Board of Trade 

were executed for his account, but said respondent has failed and refused to 

report to the Commodity Exchange 
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Authority with respect to such transactions, as required under the aforesaid 

provisions of the Commodity Exchange Act and the rules and regulations. 

V 

On June 19, 1957, an order was issued by the Judicial Officer directing all 

contract markets to refuse to General Commerce Corporation all trading 

privileges for a period of 60 days effective July 22, 1957, because of said 

corporation's failure and refusal to file required reports on ten occasions 

within a period of approximately three months. In re General Commerce 

Corporation, 16 Agric. Dec. 495 (16 A.D. 495), CEA Docket No. 76. At the time 

of the violations alleged in the above proceeding, respondent was general 

manager of said corporation and, on one occasion prior to filing of the formal 

complaint against said corporation, respondent appeared at the New York Office 

of the Commodity Exchange Authority to discuss reporting requirements. 

Subsequently, between July 16 and August 14, 1957, the Commodity Exchange 

Authority addressed three letters to the respondent calling his attention to his 

delinquency in reporting the transactions described above and requesting that 

reports be submitted, but received no reply. On August 27, 1957, the respondent 

was reached by telephone and promised representatives of the Commodity Exchange 

Authority that the necessary reports would be filed, but no reports were 

received. Subsequently, attempts were made by the Commodity Exchange Authority 

to reach the respondent by telephone at his business address, but 

without success. The respondent was, therefore, aware of his obligations under 

the act and the rules and regulations with respect to the filing of reports, and 

that failure to submit reports, as required, constituted a knowing and wilful 

violation of section 4i of the Commodity Exchange Act and sections 9.10, 9.11, 

9.12, and 9.21 of the rules and regulations thereunder. 

Respondent is hereby notified that a hearing will be held in this matter 

beginning at 10:00 a.m. local time, on the 30th day of April, 1958, in Room 202, 

44 Beaver Street, New York, New York before a referee designated to conduct such 

hearing. Respondent will have an opportunity at such hearing to show cause, if 

any there be, why an order should not be made directing all contract markets to 

refuse all trading privileges to the respondent for such period of time as may 

be determined. The respondent will have twenty (20) days after the receipt of 

this notice of hearing in which to file with the Hearing Clerk, United States 

Department of Agriculture, Washington 25, D. C., an answer, with an original and 

five copies, fully and completely stating the nature of the defense and 

admitting or denying, specifically and in detail, each material and relevant 

allegation of this complaint. Allegations that are not answered will be deemed 

admitted for the purpose of this proceeding. 

It is ordered that this complaint and notice of hearing be served on the 

respondent at least twenty (20) days prior to the date set for hearing. 

Done at Washington, D. C., this 

6th day of March, 1958. 

/s/ Don Paarlberg 

Don Paarlberg, Assistant Secretary 

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