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Commodity Futures Trading Commission 

CEA CASES 

NAME: MELVIN MILLER, AND DOMINICK F. AUCIELLO 

DOCKET NUMBER: 151 

DATE: JANUARY 3, 1968 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Melvin Miller, and Dominick F. Auciello, Respondents 

CEA Docket No. 151 

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

Act 

There is reason to believe that the respondents, Melvin Miller and Dominick 

F. Auciello, have violated the provisions of the Commodity Exchange Act (7 

U.S.C. 1 et seq.) and in accordance with the provisions of section 6(b) of the 

said act (7 U.S.C. 9), this complaint and notice of hearing is issued stating 

the charges in that respect as follows: 

I 

Respondent Melvin Miller, 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. 

II 

Respondent Dominick F. Auciello, 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, a registered floor broker under 

the 

Commodity Exchange Act and an agent and employee of respondent Melvin Miller and 

engaged in assisting him in handling orders from futures commission merchants to 

execute trades on the New York Mercantile Exchange and in the making of the 

reports of execution with respect to such orders. 

III 

The futures transactions referred to in this complaint were sales of May 1967 

potato futures on the New York Mercantile Exchange, a duly designated contract 

market under the Commodity Exchange Act and hereinafter referred to as the 

exchange. Such sales could have been used for (a) hedging transactions in 

interstate commerce in potatoes or the products or by-products thereof, or (b) 

determining the price basis of transactions in interstate commerce in such 

commodities, or (c) delivering such commodities sold, shipped, or received in 

interstate commerce. Trading in May 1967 potato futures on the exchange was 

conducted in units of one contract or carlot consisting, at all times material 

herein, of 50,000 pounds of Maine-grown Irish potatoes. Trading in such futures 

ended on May 10, 1967. 

IV 
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On May 10, 1967, the respondents received for execution an order to sell 85 

carlots of May 1967 potato futures for the accounts of customers of Goodbody & 

Co., a clearing member of the exchange and a registered futures commission 

merchant under the Commodity Exchange Act. The respondents executed such order, 

selling 85 carlots at $ 2.84 

per hundred pounds and reported the execution at that price to Goodbody & Co. 

Thereafter, on May 10, 1967, the respondents learned that they had oversold in 

excess of 40 carlots of May 1967 potato futures in the course of executing a 

number of orders received from various futures commission merchants and that 

substantial losses had accrued with respect to the oversales. Thereafter, on 

May 10, 1967, and approximately one and one-half hours after the close of 

trading on the exchange, the respondents reported or caused to be reported to 

Goodbody & Co. a "corrected" report of execution with respect to its order of 

May 10, 1967, to sell 85 carlots of May 1967 potato futures. This "corrected" 

report had the effect of taking from the accounts of the selling customers 21 

sales executed pursuant to such order at a price of $ 2.84 per hundred pounds 

and substituting therefor 21 less favorable sales - 16 sales at $ 2.80 and 5 

sales at $ 2.81 - which had not been executed pursuant to such order. The 

respondents placed the 21 sales taken from the customers' accounts in an account 

through which the respondents cleared their error trades. Based on the 

"corrected" report of execution, Goodbody & Co. showed on its records and 

reported to its customers 16 sales at $ 2.80 and 5 sales at $ 2.81, rather than 

the 21 sales that were actually executed pursuant to the order from Goodbody & 

Co. to sell 85 carlots. 

V 

By reason of the facts alleged in this complaint, the respondents, in 

connection with an order to make and the making of futures contracts on behalf 

of customers of Goodbody & Co., cheated or defrauded or attempted to cheat or 

defraud such customers, caused false reports to be rendered such customers and 

false records to be entered for them, made or caused to be made a false report 

to Goodbody & Co. and deceived or attempted to deceive that firm, all in wilful 

violation of section 4b of the Commodity Exchange Act (7 U.S.C. 6b). 

WHEREFORE, it is hereby ordered that this complaint and notice of hearing be 

served upon the said respondents. The respondents will have twenty (20) days 

after the receipt of this complaint in which to file with the Hearing Clerk, 

United States Department of Agriculture, Washington, D. C. 20250, 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 allegation of 

this complaint. Allegations not answered will be deemed admitted for the 

purposes of this proceeding. Failure to file an answer will constitute an 

admission of all the allegations of this complaint and a waiver of hearing. The 

filing of an answer in which all of the material allegations of fact contained 

in the complaint are admitted likewise shall constitute a waiver of hearing 

unless a hearing is requested. The respondents are hereby notified 

that unless hearing is wai[ILLEGIBLE TEXT] hearing will be held at 10:00 a.m., 

local time, on February 28, 1968, in New York, New York, at a place therein to 

be specified later, before a referee designated to conduct such hearing. At 

such hearing, the respondents will have the right to appear and show cause, if 

any there be, why an order should not be made suspending or revoking the 

registrations of the respondents as floor brokers and directing that all 

contract markets refuse all trading privileges to the respondents for such 

period of time as may be determined. 
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It is ordered that this complaint and notice of hearing be served on each of 

the said respondents at least twenty (20) days prior to the date set for 

hearing. 

Done at Washington, D. C. 

January 3, 1968 

[SEE SIGNATURE IN ORIGINAL] 

Assistant Secretary 

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