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Commodity Futures Trading Commission 

CEA CASES 

NAME: COMMODITY CONSULTANTS, INC., AND PETER F. SCHOENFELD 

CITATION: 28 Agric. Dec. 1110 

DOCKET NUMBER: 163 

DATE: SEPTEMBER 23, 1969 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 12,703) 

In re COMMODITY CONSULTANTS, INC., and PETER F. SCHOENFELD. CEA Docket No. 163. 

Decided September 23, 1969. 

Financial requirements -- Denial of trading privileges -- Suspension of 

registration -- Stipulation 

The registration of the corporate respondent as a futures commission merchant 

is suspended for a period of 30 days and thereafter until it demonstrates that 

it meets the minimum financial requirements prescribed by the regulations issued 

under the Commodity Exchange Act; the individual respondent is ordered to cease 

and desist from causing, aiding, etc., any futures commission merchant to engage 

in business under the act without meeting the necessary financial requirements; 

and all the contract markets are directed to refuse all trading privileges to 

both respondents for a period of 30 days. 

Earl L. Saunders for Commodity Exchange Authority. 

Alan M. Smotkin, of Beverly Hills, Cal., for respondents. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

The respondents are charged with violating section 4f of the Commodity 

Exchange Act (7 U.S.C. 6f, Supp. IV, 1969) and section 1.17 of the regulations 

issued thereunder (34 F.R. 599). No hearing has been held. The respondents have 

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 on 

the charges, and consent to the entry of the order contained herein. 

FINDINGS OF FACT

1. Respondent Commodity Consultants, Inc., is now, and was at all times 

material herein, a corporation organized and existing under the laws of the 

State of California, with its office at 6363 Wilshire Boulevard, Los Angeles, 

California 90048. The said corporation is now, and was at all such times, 

registered as a futures commission merchant under the Commodity Exchange Act. 

During the period from May 6, 1969, through June 24, 1969, the respondent 

corporation, acting in the capacity of futures commission merchant under the 

Commodity Exchange Act, was engaged in commodities for future delivery for the 

accounts of customers and holding for such customers sums of money, representing 

deposits of margin by and trading profits accruing to such customers. 

2. Respondent Peter F. Schoenfeld, an individual whose business address is 

the same as that of the respondent corporation, is now, and was at all times 

material herein, President of the respondent corporation. At all such times, 

the operations of the 
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respondent corporation were under the direction and control of respondent Peter 

F. Schoenfeld. 

3. The respondent corporation presently fails to meet the minimum financial 

requirements prescribed by section 1.17 of the regulations (34 F.R. 599) issued 

by the Secretary of Agriculture under the Commodity Exchange Act, and at all 

times during the period from May 6 through June 24, 1969, failed to meet such 

requirements. During such period, the respondent corporation's current 

liabilities exceeded its current assets, and it lacked sufficient capital to 

meet the minimum financial requirements prescribed by section 1.17 of the 

regulations, as follows: 

Amount by Which Current Liabilities 

Date Exceeded Capital 

1969 Current Assets Deficiency 

May 6 $ 1,610.84 $ 11,610.84

7 1,970.66 11,970.66

8 1,970.66 11,970.66

9 1,970.66 11,970.66

12 2,218.51 12,218.51

13 2,218.51 12,218.51

14 2,218.51 12,218.51

15 2,218.51 12,218.51

16 2,218.51 12,218.51

19 2,959.37 12,959.37

20 4,059.42 14,059.42

21 4,312.02 14,312.02

22 4,143.02 14,143.02

23 4,143.02 14,143.02

26 4,143.02 14,143.02

27 4,838.67 14,838.67

28 4,870.72 14,870.72

29 5,592.53 15,592.53

June 2 5,623.80 15,623.80

3 5,629.30 15,629.30

4 5,896.59 15,896.59

5 6,565.41 16,565.41

6 6,978.56 16,978.56

9 7,537.41 17,537.41

10 8,043.91 18,043.91

11 8,463.91 18,463.91

12 8,569.39 18,569.39

13 8,941.14 18,941.14

16 8,941.14 18,941.14

17 9,206.14 19,206.14

18 9,406.14 19,406.14

19 9,406.14 19,406.14 

 

Amount by Which 

Current Liabilities Date Exceeded Capital 

1969 Current Assets Deficiency

20 9,406.14 19,406.14

23 9,406.14 19,406.14

24 9,223.84 19,223.84

CONCLUSIONS

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

that, as charged in the complaint, the respondents violated section 4f of the 

Commodity Exchange Act and section 1.17 of the regulations thereunder. 
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The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the stipulation and waiver 

submitted by the respondents. The administrative officials believe that the 

prompt entry of the proposed order would 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 be accepted and that the proposed order be issued. 

It is concluded that the complainant's recommendation should be adopted. 

ORDER

Effective immediately, respondent Commodity Consultants, Inc., shall cease 

and desist from engaging as futures commission merchant without meeting the 

minimum financial requirements prescribed by section 1.17 of the regulations (34 

F.R. 599) issued under the Commodity Exchange Act. 

Effective immediately, respondent Peter F. Schoenfeld shall cease and desist 

from wilfully causing, aiding, abetting, counseling, commanding or inducing 

Commodity Consultants, Inc., or any other futures commission merchant, to engage 

as futures commission merchant without meeting the minimum financial 

requirements prescribed by section 1.17 of the regulations (34 F.R. 599) issued 

under the Commodity Exchange Act. 

Effective on the thirtieth day after the date of entry of this order, (1) the 

respondents are prohibited from trading on or subject to the rules of any 

contract market for a period of 30 

days, and all contract markets shall refuse all trading privileges to the 

respondents during this period, such prohibition and refusal to apply to all 

trading done and all positions held by the respondents, directly or indirectly, 

and (2) the registration of respondent Commodity Consultants, Inc. as futures 

commission merchant is suspended for a period of 30 days and thereafter until 

such time as the said respondent demonstrates that it meets the financial 

requirements prescribed by section 1.17 of the regulations (34 F.R. 599) issued 

under the Commodity Exchange Act. At the request of the said respondent, when 

it makes such a showing, a supplemental order will be issued in this proceeding 

terminating such suspension after the thirty-day period. 

A copy of this order shall be served upon each of the parties and upon each 

contract market. 

 

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