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Commodity Futures Trading Commission 

CEA CASES 

NAME: JOSEPH A. FRIEDMAN AND JOSEPH A. FRIEDMAN CO. 

CITATION: 23 Agric. Dec. 293 

DOCKET NUMBER: 115 

DATE: MARCH 24, 1964 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 8970) 

In re JOSEPH A. FRIEDMAN AND JOSEPH A. FRIEDMAN CO. CEA Docket No. 115. 

Decided March 24, 1964. 

Potato Futures -- Suspension of Trading Privileges and Registrations -- 

Consent

The registrations of respondents and their trading privileges are suspended 

for a period of 30 days for, among other things, noncompetitively filling orders 

with respect to potato futures transactions on the New York Mercantile Exchange. 

Mr. Earl L. Saunders, for Commodity Exchange Authority. Mr. Morris J. Ezra, of 

New York, New York, 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 section 6(b) of the 

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

alleges that the respondents violated sections 4b(A) and 4b(D) of the Act (7 

U.S.C. §§ 6b(A) (D)), and section 1.38 of the regulations under the Act (17 CFR 

1.38). 

No hearing has been held. On March 2, 1964, the respondents withdrew the 

answer which they had previously filed and submitted a stipulation under section 

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

hereinafter set forth, waive hearing, and consent to the entry of the order 

contained herein. 

FINDINGS OF FACT

1. Respondent Joseph A. Friedman, an individual, whose business address is 6 

Harrison Street, New York, New York, is now and was at all times material herein 

a member of the New York Mercantile Exchange and a registered floor broker under 

the Commodity Exchange Act. 

2. Respondent Joseph A. Friedman Co., a partnership composed of respondent 

Joseph A. Friedman and his wife, whose business address is 6 Harrison Street, 

New York, New York, is now and was at all times material herein a clearing 

member of the New York Mercantile Exchange and a registered futures commission 

merchant under the Commodity Exchange Act. 

3. The New York Mercantile Exchange was at all times material herein and is 

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

4. The transactions referred to herein relate to the purchase and sale of May 

1963 potato futures contracts on the New York Mercantile Exchange. Such 

contracts could have been used for hedging transactions in interstate commerce 
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in potatoes or the products or byproducts thereof, or for determining the price 

basis 

of transactions in interstate commerce in potatoes, or for delivering potatoes 

sold, shipped, or received in interstate commerce. 

5. Respondents, in filling orders received from Shearson, Ham-mill & Co. and 

from D. R. Comenzo & Co., Inc., registered futures commission merchants under 

the Commodity Exchange Act, made the following trades in May 1963 potato futures 

on the New York Mercantile Exchange: 

Trades Made by Respondents for Shearson, Hammill & Co. and D. R. Comenzo & 

Co., Inc.>100> >101> 

Quantity Price Date (carlots) (Dollars Clearing Floor 

1963 Bought Sold per cwt.) Member Broker 

January 18 1 2.56 Shearson, Joseph A. 

Hammill & Co. Friedman 

18 1 2.58 " H. Fisher 

23 2 2.71 " R. Leeds 

24 4 2.87 " " 

25 2 2.81 " Joseph A. 

Friedman 

25 1 2.81 " " 

25 2 2.79 " R. Leeds 

25 5 2.80 " Max 

Friedman 

28 5 2.83 " Joseph A. 

Friedman 

29 1 2.78 " I. Freundlich 

31 3 2.92 D. R. Comenzo Joseph A. 

& Co., Inc. Friedman 

February 8 2 2.88 Shearson, Joseph A. 

Hammill & Co. Friedman 

15 1 2.89 D. R. Comenzo " 

& Co., Inc. 18 1 2.97 Shearson, N. Faye 

Hammill & Co. 20 1 2.89 D. R. Comenzo Joseph A. 

& Co., Inc. Friedman 

21 1 2.94 Shearson Hammill & Co. D. Laiken 

25 1 2.83 " Joseph A. 

Friedman 

27 1 2.75 " D. Weinberger 

27 1 2.76 " " 

Opposite Side of the Trade

Date Floor Clearing Member

1963 Broker and Account 

January 18 D. Laiken Joseph A. 

Friedman Co. 

18 Joseph A. " 

Friedman 

23 " " 

24 " " 

25 Max " 

Friedman 25 " " 
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Quantity Price 

Date (carlots) (Dollars Clearing Floor 

1963 Bought Sold per cwt.) Member Broker 

25 Joseph A. " 

Friedman 25 " " 

28 Max " 

Friedman 29 Joseph A. " 

Friedman 

31 Max " 

Friedman 

 

February 8 Max Joseph A. 

Friedman Friedman Co. 

15 " " 

18 Joseph A. " 

Friedman 

20 D. Laiken " 

21 Joseph A. " 

Friedman 

25 H. Fisher " 

27 Joseph A. " 

Friedman 

27 " " 

In the transactions set forth above respondents without the prior consent of 

their principals filled orders received from such principals by taking the 

opposite side thereof for respondents' own account. 

6. On January 25, 1963, respondents received for execution three orders to 

purchase at the market a total of 14 carlots of May 1963 potato futures on 

behalf of customers of Shearson, Hammill & Co. Thereafter, on January 25, 1963, 

respondents purchased 10 carlots of such futures at $ 2.80 per hundred pounds, 

and took these purchases into their own account, notwithstanding that at such 

time respondents had in their possession for execution the said market orders of 

Shearson, Hammill & Co. Later, on the same day, respondents purchased 14 

carlots of May 1963 potato futures at $ 2.82 per hundred pounds, and allocated 

these purchases to fill the said market orders of Shearson, Hammill & Co. 

7. On January 25, 1963, respondents received for execution an order to sell 

two carlots of May 1963 potato futures for the account of Shearson, Hammill & 

Co. Respondents noncompetitively filled such order with two carlots of May 1963 

potato futures which respondents had previously purchased for their own account. 

CONCLUSIONS

By reason of the facts set forth in the Findings of Fact, it is concluded 

that respondents violated section 4b(A) and 4b(D) of the Commodity Exchange Act 

(7 U.S.C. 6b(A)(D)), and section 1.38 of the regulations under the Act (17 CFR 

1.38). 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the proposed stipulation and order, 

and that they believe that the proposed sanctions are adequate and that the 

prompt entry, without further proceedings, of the order to which 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 stipulation and waiver submitted 

by respondents be accepted and that the proposed order be issued. It is so 

concluded. 
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ORDER

Effective 30 days after the issuance of this order, the registration of 

respondent Joseph A. Friedman as a floor broker and the registration of 

respondent Joseph A. Friedman Co. as a futures commission merchant are suspended 

for a period of 30 days. 

Effective 30 days after the issuance of this order, all contract markets 

shall refuse all trading privileges to respondents, Joseph A. Friedman and 

Joseph A. Friedman Co., for a period of 30 days, such refusal to apply to all 

trading done and positions held by them, directly or indirectly. 

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

and on each contract market. 

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