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Commodity Futures Trading Commission 

CEA CASES 

NAME: CHARLES HAAG 

DOCKET NUMBER: 116 

DATE: FEBRUARY 7, 1964 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

Charles Haag, Respondent 

CEA Docket No. 116 

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

Act 

There is reason to believe that the respondent, Charles Haag, has violated 

the provisions of the Commodity Exchange Act (7 U.S.C. § 1 et seq.), hereinafter 

referred to as the Act, and the rules and regulations made pursuant thereto (17 

CFR, Part 1), and in accordance with the provisions of section 6(b) of the Act 

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

charges in that respect as follows: 

I 

Respondent, Charles Haag, is an individual whose address is 24 Brookside 

Drive, Upper Saddle River, New Jersey 

II 

The Board of Trade of the City of Chicago, hereinafter referred to as the 

Chicago Board of Trade, and the Chicago Mercantile Exchange are now and were at 

all times material herein duly designated contract markets under the Act. 

III 

During the period October 18, 1962, through January 15, 1963, the respondent 

made trades in egg futures on the Chicago Mercantile Exchange in his own 

accounts, carried in his name and in the name of Aaron G. Brandfon, and in 

accounts of 19 other persons, which accounts were controlled by the respondent. 

All transactions in such accounts belonged to or were controlled by the 

respondent. 

IV 

On each business day during the periods October 18 through October 24, 1962, 

October 26 through October 28, 1962, October 30 through November 7, 1962, 

November 9 through December 26, 1962, and January 7 through January 14, 1963, 

the respondent held or controlled a net short position in shell egg futures on 

the Chicago Mercantile Exchange, which position ranged from 25 carlots to 134 

carlots in a single future. By reason of the fact that such quantities were 

equal to or in excess of 25 carlots, the respondent was in reporting status and 

was required to report to the Commodity Exchange Authority with respect to all 

transactions executed and all open contract positions held or controlled by him, 

in all egg futures on all boards of trade during such periods and with respect 

to all transactions by reason of which the respondent no longer held or 

controlled a reportable position, as provided in section 4i of the Act (7 U.S.C. 

§ 6i) and sections 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03 of the 

regulations thereunder (17 CFR 15.01, 15.02, 15.03, 18.00, 18.01, 18.03). 
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V 

On 31 business days within the periods specified in paragraph IV hereof, 

while the respondent was in reporting status as therein described, and on five 

additional business days -- viz., October 25 and 29, 1962, November 8, 1962, 

December 27, 1962, and January 15, 1963, when the respondent's position was 

reduced below the reporting level, transactions in shell egg futures on the 

Chicago Mercantile Exchange were executed for accounts owned or controlled by 

the respondent. However, the respondent failed or refused to submit reports to 

the Commodity 

Exchange Authority on 28 of such days and submitted false reports with respect 

to the remaining 8 days, in willful violation of the aforesaid sections of the 

Act and the regulations thereunder. 

VI 

On the dates listed below, the respondent made speculative trades in shell 

egg futures on the Chicago Mercantile Exchange which were in excess of the 

maximum permissible limits established by the order of the Commodity Exchange 

Commission (17 CFR 150.5) as follows: 

Date Future No. of Carlots 

Purchased Sold

November 9, 1962 December 1962 76 

December 21, 1962 December 1962 129 

January 7, 1963 January 1963 94 

January 15, 1963 January 1963 100 

By reason thereof, the respondent willfully violated section 4a(2) of the Act 

and the order of the Commodity Exchange Commission establishing limits on 

position and daily trading in eggs for future delivery (7 U.S.C. 6a(2); 17 CFR 

150.5). 

VII 

On the dates listed below, the respondent held or controlled speculative net 

short positions in shell egg futures on the Chicago Mercantile Exchange which 

were in excess of the maximum permissible limits established by the order of the 

Commodity Exchange Commission (17 CFR 150.5) as follows: 

See original document-page 3 

Date Future Position 

(No. of Carlots)

October 30, 1962 November 1962 82

November 1, 1962 November 1962 82

November 9, 1962 December 1962 86

November 13, 1962 December 1962 87

November 14, 1962 December 1962 102

November 20, 1962 December 1962 87

November 23, 1962 December 1962 104

November 26, 1962 December 1962 109

November 28, 1962 December 1962 84

November 30, 1962 December 1962 94

December 3, 1962 December 1962 109

December 4, 1962 December 1962 129

December 6, 1962 December 1962 134

December 11, 1962 December 1962 134

December 12, 1962 December 1962 134

December 13, 1962 December 1962 134

December 14, 1962 December 1962 134

December 17, 1962 December 1962 114

December 18, 1962 December 1962 109

December 20, 1962 December 1962 129

January 7, 1963 January 1963 98
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Date Future Position 

(No. of Carlots)

January 8, 1963 January 1963 98

January 10, 1963 January 1963 98

January 14, 1963 January 1963 104

By reason thereof, the respondent willfully violated section 4a(2) of the Act 

and the order of the Commodity Exchange Commission establishing limits on 

position and daily trading in eggs for future delivery (7 U.S.C. 6a(2); 17 CFR 

150.5), 

VIII 

On December 20, 1962, the respondent held or controlled a speculative net 

short position of 154 carlots in all shell egg futures combined on the Chicago 

Mercantile Exchange which position was in excess of the maximum permissible 

limit established by the order of the Commodity Exchange Commission (17 CFR 

150.5). By reason thereof, the respondent willfully violated section 4a(2) of 

the Act and the said order of the Commodity Exchange Commission. 

IX 

On each business day during the period January 25, 1963, through February 5, 

1963, the position in soybean futures on the Chicago Board of Trade in accounts 

owned or controlled by the respondent exceeded 200,000 bushels in a single 

future and, therefore, the respondent was in reporting status and was required 

to report to the Commodity Exchange Authority with respect to all transactions 

executed and all open contract positions held during such period for all 

accounts owned or controlled by him, in all soybean futures on all boards of 

trade, and with respect to all transactions by reason of which the respondent no 

longer held or controlled a reportable position, as provided in section 4i of 

the Act (7 U.S.C. 6i) and sections 15.01, 15.02, 15.03, 18.00, 18.01, and 18.03 

of the regulations thereunder (17 CFR 15.01, 15.02, 15.03, 18.00, 18.01 and 

18.03). 

X 

On six business days during the period referred to in paragraph IX above -- 

viz., January 25, 28, 29, 30, 31 and February 1, 1963, while the respondent was 

in reporting status as therein described, and on one additional business day, 

February 6, 1963, when the respondent's position was reduced below the reporting 

level, transactions in soybean futures on the Chicago Board of Trade were 

executed for accounts owned or controlled by him, but the respondent failed or 

refused to report with respect to such transactions and the resulting positions 

to the Commodity Exchange Authority, in willful violation of the aforesaid 

sections of the Act and the regulations thereunder. 

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

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

after the receipt of this notice of hearing 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 

material and relevant 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 the material allegations of this 

complaint and a waiver of hearing. The respondent is hereby notified that 

unless hearing is waived, either expressly or by failure to file an answer and 

request a hearing, a hearing will be held at 10:00 a.m., local time, on March 

26, 1964, 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 

order should not be made directing that all contract markets refuse all trading 

privileges to the respondent 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 the 

respondent at least twenty (20) days prior to the date set for hearing. 

Done at Washington, D. C. 

February 7, 1964 

/s/ George L. Mehren 

Assistant Secretary 

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