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Commodity Futures Trading Commission 

CEA CASES 

NAME: DUNBEATH-HAGEN CORP., AND CHRISTIAN S. MORANTE 

CITATION: 26 Agric. Dec. 465 

DOCKET NUMBER: 134 

DATE: MAY 18, 1967 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 11,191) 

In re DUNBEATH-HAGEN CORP., and CHRISTIAN S. MORANTE. CEA Docket No. 134. 

Decided May 18, 1967. 

False statement in application -- Denial of trading privileges -- Default

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

corporate respondent for one year and to the individual respondent for 30 days 

for violations of the act and regulations by respondents in submitting a false 

financial statement in connection with the corporate respondent's application 

for registration as a futures commission merchant. Respondents are not 

presently registered under the act. 

Mr. Earl L. Saunders for Commodity Exchange Authority. 

Mr. Benj. M. Holstein, Referee. 

Decision by Thomas J. Flavin, Judicial Officer

DECISION AND ORDER

In view of respondents' default in the filing of answers to the complaint 

herein, the recommended decision of the hearing examiner filed April 17, 1967, 

to which respondents did not file exceptions, is adopted as the final decision 

in this proceeding. 

ORDER

Effective June 19, 1967, all contract markets shall refuse all trading 

privileges to respondent Dunbeath-Hagen Corp. for a period of one year and shall 

refuse all trading privileges to respondent Christian S. Morante for a period of 

30 days, such refusals to apply to all trading done and positions held by them, 

or either of them, directly or indirectly. 

A copy of this decision and order shall be served upon each respondent and 

upon each contract market. 

HEARING EXAMINER'S RECOMMENDED DECISION

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. The respondents are a New York corporation which at the time of the 

alleged violations was registered as a futures commission merchant, and an 

individual who is the president of the corporation and its principal 

stockholder. The respondents are charged with furnishing false information in 

connection with the corporation's application for registration as a futures 

commission merchant for the year 1966, in wilful violation of section 4f of the 

act (7 U.S.C. 6f) and section 1.10 of the regulations thereunder (17 CFR 1.10). 
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No hearing has been held with respect to this proceeding. On February 27, 

1967, the Hearing Clerk received a letter from respondent Christian S. Morante 

requesting that the answer previously filed by him as president of respondent 

corporation be withdrawn, and that he be notified of "the determination made in 

the . . . matter." At the same time, counsel for complainant informed the 

Referee that it was the intention of respondents to permit disposition of the 

proceeding by default. 

The Referee granted the request for withdrawal of the answer and continued 

the hearing without date, pending disposition of this proceeding as a default 

case. In such cases, the rules of practice provide for a Referee's report 

without further investigation or hearing (17 CFR 0.9(c)). 

Counsel for complainant has filed a recommendation in which he states that 

since neither respondent is presently registered under the Commodity Exchange 

Act, the only sanctions available are denials of trading privileges. Counsel 

recommends a denial of such privileges to respondent Dunbeath-Hagen Corporation 

for a period of one year, and a similar denial to respondent Christian S. 

Morante for a period of thirty days. 

FINDINGS OF FACT

1. Respondent Dunbeath-Hagen Corp., a New York corporation, was at all times 

material herein a registered futures commission merchant under the Commodity 

Exchange Act. Respondent corporation is not presently a registrant under the 

Commodity Exchange Act. 

2. Respondent Christian S. Morante, an individual, whose address is 186 

Nannyhagen Road, Thornwood, New York, is now and was at all times material 

herein the president and principal stockholder of the aforesaid Dunbeath-Hagen 

Corp. 

3. On or about December 17, 1965, respondent Dunbeath-Hagen Corp., in 

connection with its application for registration as a futures commission 

merchant under the Commodity Exchange Act for the year 1966, knowingly submitted 

to the Commodity Exchange Authority a false financial statement, as of December 

17, 1965, attested to by respondent Christian S. Morante, which misrepresented 

and concealed the true financial condition of respondent corporation. 

CONCLUSIONS

By reason of the above findings, respondents wilfully violated section 4f of 

the Commodity Exchange Act (7 U.S.C. 6f) and section 1.10 of the regulations (17 

CFR 1.10), as charged in the complaint. These violations are serious and 

justify substantial sanctions. It is concluded that complainant's 

recommendation with respect to sanctions should be adopted. 

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