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Commodity Futures Trading Commission 

CEA CASES 

NAME: ROCCO G. CANCELLARE 

DOCKET NUMBER: 169 

DATE: MARCH 9, 1970 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Rocco G. Cancellare, Respondent 

CEA Docket No. 169 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent, Rocco G. Cancellare, has 

violated the provisions of the Commodity Exchange Act (7 U.S.C. Chapter 1, 1964 

ed., as amended, Supp. IV, 1969), and in accordance with the provisions of 

sections 6(b) and 6(c) of the said Act (7 U.S.C. 9 and 13b, Supp. IV, 1969), 

this complaint and notice of hearing is issued stating the charges in that 

respect as follows: 

I 

The respondent, an individual whose business address is c/o New York Cotton 

Exchange, Inc., 37 Wall Street, New York, New York, is now and was at all times 

material herein a member of the Citrus Associates of the New York Cotton 

Exchange, Inc., and a registered floor broker under the Commodity Exchange Act. 

II 

The Citrus Associates of the New York Cotton Exchange, Inc., hereinafter 

called the exchange, is now and was at all times material herein a duly 

designated contract market under the Commodity Exchange Act. 

III 

The futures transactions referred to herein relate to the purchase of frozen 

concentrated orange juice futures contracts on the Citrus Associates of the New 

York Cotton Exchange, Inc., each of which contracts called for the delivery of 

15,000 pounds of frozen concentrated orange juice. Such contracts could have 

been used for hedging transactions in interstate commerce in frozen concentrated 

orange juice, or for determining the price basis of transactions in interstate 

commerce in frozen concentrated orange juice, or for delivering frozen 

concentrated orange juice sold, shipped, or received in interstate commerce. 

IV 

During the period from December 17 through December 23, 1968, the quantities 

of the frozen concentrated orange juice futures, hereinafter referred to, 

available for purchase on the exchange were insufficient to meet the demand for 

the purchase of such futures at the maximum price permitted for each such future 

under the rules of the exchange. During such period, trading in such futures 

was conducted under a system wherein the exchange allocated sell orders to each 

floor broker seeking to buy such futures. On each day within such period, the 

respondent, in his capacity as floor broker, had accepted and had in his 

possession for execution on behalf of his principals, registered futures 

commission merchants, market orders to buy quantities of frozen 
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concentrated orange juice futures, and the respondent made purchases of such 

futures in the quantities permitted by the sell orders allocated to the 

respondent by the exchange. However, instead of allocating all such purchases 

to the orders which he had received from his principals, the respondent, acting 

for his own advantage and without the knowledge or consent of his principals, 

allocated such purchases between his own account and his customers' accounts. 

The dates, the principals for whom the respondent acted, the futures purchased, 

and their allocation were as follows: 

Allocation 

(Number of Contracts)

To To 

Date Principal Futures Respondent Principal 

1968 December 17 Goodbody & Co. July 4 4 

December 18 Goodbody & Co. July 1 4 

December 18 Arnold D. Kamen & Co. July 1 1 

December 19 Goodbody & Co. May 1 1 

December 19 Francis I. DuPont & Co. July 1 2 

December 19 Harris Upham & Co. July 2 2 

December 20 Goodbody & Co. May 3 3 

December 23 Goodbody & Co. May 1 1 

V 

By reason of the facts set forth in this complaint, the respondent attempted 

to deceive, cheat or defraud, and did deceive, cheat and defraud persons in 

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

1969). 

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

served upon the respondent and this proceeding shall be governed by sections 

0.1, 0.2, 0.4(b), 0.5 through 0.22, and 0.28 of the rules of practice under the 

Commodity Exchange Act (17 CFR 0.1, 0.2, 0.4(b), 0.5 through 0.22, 0.28). The 

respondent 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 three 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 purpose of this proceeding. Failure to 

file an answer will constitute an admission of all 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 this complaint are admitted likewise shall 

constitute a waiver of hearing unless a hearing is requested. The respondent is 

hereby notified that unless a hearing is waived, a hearing will be held at 10:00 

a.m., local time, on May 12, 1970, 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 respondent will have the right to appear and show cause, if 

any there be, why an appropriate order should not be issued in accordance with 

the Commodity Exchange Act, (1) prohibiting the respondent from trading 

on or subject to the rules of any contract market, and directing that all 

contract markets refuse all trading privileges to the respondent for such period 

of time as may be determined, (2) directing that the respondent shall cease and 

desist from violating the Commodity Exchange Act in the manner alleged herein, 

and (3) suspending or revoking the registration of the respondent as floor 

broker. 

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. 
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March 9, 1970 

[SEE SIGNATURE IN ORIGINAL] 

Richard Lyng 

Assistant Secretary 

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