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Commodity Futures Trading Commission 

CEA CASES 

NAME: IRVING WEIS AND COMPANY, IRNING WEIS, AND ALEXANDER CYCLEMAN 

CITATION: 8 Agric. Dec. 151 

DOCKET NUMBER: 39 

DATE: FEBRUARY 3, 1949 

DOCUMENT TYPE: SUPPLEMENTAL ORDER 

(A. D. 1994) 

 

In re Irving Weis and Company, Irving Weis, and Alexander Cycleman. CEA Doc. 

No. 39. Decided February 3, 1949. 

Motion Requesting for Modification of Prior Order, Granted

Upon recommendation of the Commodity Exchange Authority under the Act the 

respondent's motion requesting that, in view of the losses already suffered as a 

result of this proceeding, there be some amelioration or remission of the 

sanction imposed under the order of March 5, 1948, to the end that respondent's 

firm may be in a position to retain those of its customers which it still has 

and continue to stay in business, granted, and the specific order recommended by 

the authority is adopted in substance, and the said order is hereby modified as 

herein ordered. 

 

Mr. Benj. M. Holstein for Commodity Exchange Authority. Mr. Irving Weis and 

Messrs. Corbin, Bennett & Delehanty, of New York City, for respondents. 

Decision by Thomas J. Flavin, Judicial Officer

SUPPLEMENTAL ORDER

In this disciplinary proceeding under the Commodity Exchange Act (7 U. S. C. 

Chapter 1), respondents appealed to the United States Court of Appeals for the 

Second Circuit a decision and order entered March 5, 1948, 7 Agric. Dec. 180 (7 

A. D. 180), finding that respondents violated the act and ordering suspension 

for 10 days of the registrations of Irving Weis and Company as a futures 

commission merchant and Irving Weis as a floor broker and ordering denial of 

trading privileges on the contract markets for all respondents. The 

effectiveness of this order was stayed pending action by the court on the appeal 

7 Agric. Dec. 193 (7 A. D. 193). On December 7, 1948, the court entered a 

decision affirming the order of March 5, 1948, and on January 11, 1949, entered 

its judgment setting 30 days thereafter as the effective date for the suspension 

of registrations and denial of trading privileges ordered on March 5, 1948. 

On December 23, 1948, respondents filed a motion and supporting affidavit 

from Irving Weis alleging that the firm of Irving Weis and Company has suffered 

severe business losses by reason of this proceeding. It is stated that 

comparative figures for the years 1946 and 1948 show a loss of approximately 

two-thirds in the number of accounts carried, in gross commissions, and in net 

profits. It is further stated that under the terms of the order, the firm would 

be compelled to 

 

 

notify its remaining customers to close or transfer their accounts to other 

brokers for the period of suspension, that these customers would probably not 

return, and that the effect would be completely destructive of the business. 

The affiant requests that, in view of the losses already suffered as a result of 

this proceeding, there be some amelioration or remission of the sanction imposed 
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under the order, to the end that the firm may be in a position to retain those 

customers which it still has and continue to stay in business. 

On January 28, 1949, complainant filed an answer to the motion. The answer 

states in part: 

"Information available to the Commodity Exchange Authority under the Act 

indicates that, as of December 31, 1948, commodity customers' margin funds held 

by the firm had declined approximately 69% since December 31, 1947. 

Accordingly, the affiant's claims as to the loss of business appear to be 

substantiated. The order of March 5, 1948, follows the recommendations made by 

the Commodity Exchange Authority. At that time there had been no representation 

or showing as to the loss of business already sustained as a result of this 

proceeding. The offense committed by these respondents is a serious one and 

requires an effective sanction. However, it is believed that this objective can 

be achieved without requiring the liquidation or transfer of all remaining 

accounts, and the possible destruction of the respondents' business. It is, 

accordingly, suggested that the order of the Judicial Officer be modified by 

providing that it should not be construed to prohibit the carrying or 

liquidation of customers' positions on the books of respondents as of the close 

of business on the last day preceding the effective date of the suspension." 

The answer then proceeds to propose a specific order to accomplish the 

recommendations made. This specific order is adopted in substance and the order 

of March 5, 1948, is modified as follows: 

Effective February 11, 1949, the registration of Irving Weis and Company as a 

futures commission merchant under the Commodity Exchange Act is suspended for a 

period of ten (10) days; Provided, however, that the suspension of registration 

shall not prohibit Irving Weis and Company from carrying open positions held for 

customers as of the close of business February 10, 1949, nor from accepting and 

causing to be executed orders for the liquidation, in whole or part, of any such 

position, provided that such orders are executed by persons other than Irving 

Weis or Alexander Cycleman.

Effective February 11, 1949, all contract markets shall deny to Irving Weis 

and Company all trading privileges for its own account for a period of ten (10) 

days. 

Effective February 11, 1949, all contract markets shall deny to Irving Weis 

and Company all trading privileges for the accounts of customers for a period of 

ten (10) days. Such denial of trading privileges for customers' accounts shall 

be held in abeyance for a period of two years from the date of this order; 

Provided, however, that 

 

 

if within such two-year period the said Irving Weis and Company, after notice 

and opportunity for hearing, should be found to have violated the terms of this 

order or the provisions of the Commodity Exchange Act, then, and in that event, 

and without further notice, the Secretary of Agriculture or his lawful delegatee 

may issue a supplemental order in this proceeding making effective forthwith the 

aforesaid denial of trading privileges for customers' accounts. 

Effective February 11, 1949, the registration of Irving Weis as a floor 

broker under the Commodity Exchange Act is suspended for a period of ten (10) 

days. 

Effective February 11, 1949, all contract markets shall deny all trading 

privileges to Irving Weis and Alexander Cycleman for a period of ten (10) days. 

Copies hereof shall be served upon the parties by registered mail or in 

person and also upon the contract markets under the act. 

 

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