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Commodity Futures Trading Commission 

CEA CASES 

NAME: ANDREW CASCIO 

DOCKET NUMBER: 164 

DATE: JULY 21, 1969 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Andrew Cascio, Respondent 

CEA Docket No. 164 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent has violated the Commodity 

Exchange Act (7 U.S.C. Chapter 1, 1964 ed., as amended, Supp. IV, 1969) and the 

regulations made pursuant thereto (17 CFR, Chapter 1), and in accordance with 

the provisions of sections 6(b) and 6(c) of the said act, this complaint and 

notice of hearing is issued stating the charges in that respect as follows: 

I 

Respondent, Andrew Cascio, is an individual whose address is 2238 Oak Park 

Avenue, Berwyn, Illinois. At the times hereinafter stated, the respondent and 

Joseph M. Sclafini, now deceased, were co-partners in Sclafini and Cascio, a 

partnership registered as a futures commission merchant under the Commodity 

Exchange Act. 

II 

At the times hereinafter stated, the partnership of Sclafini and Cascio, in 

the regular course of its business, carried accounts of customers who traded in 

commodity futures on contract markets subject to the provisions of the Commodity 

Exchange Act and the 

regulations thereunder. Such accounts, the trading therein, and the handling 

and disposition of funds in connection therewith, were subject to the provisions 

of the said act and the regulations thereunder. At all such times, the said 

partnership had to its credit with banks or other depositories sums of money in 

varying amounts, held in segregated accounts and identified as customers' funds, 

representing deposits of margin by and trading profits accruing to such 

customers. 

III 

The respondent, while engaged as futures commission merchant in partnership 

with the said Joseph M. Sclafini, failed to segregate and to account separately 

for customers' funds, in that: 

(a) On each business day between July 1, 1968 and September 30, 1968, both 

inclusive, the partnership of Sclafini and Cascio was undersegregated in amounts 

within the approximate range of $ 457 and $ 15,500 that is, the total amount of 

customers' funds held in segregation as described in paragraph II hereof, was 

insufficient, by such amounts, to pay all credits and equities due to such 

customers. 
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(b) On December 20, 1968, the partnership of Sclafini and Cascio was 

undersegregated in the amount of approximately $ 26,000, and lacked 

approximately that amount of having enough funds to pay its customers' credits 

and equities. 

(c) Between February 27, 1968 and December 20, 1968, both inclusive, the 

partnership of Sclafini and Cascio failed to prepare and maintain a 

record accounting for approximately $ 21,000 received from its customers to 

margin and guarantee the trades and contracts of such customers. 

IV 

By reason of the facts alleged in this complaint, the respondent willfully 

violated sections 4d and 4g of the Commodity Exchange Act (7 U.S.C. 6d and 6g, 

Supp. IV, 1969), and sections 1.20, 1.21, 1.22, 1.32 and 1.35 of the regulations 

thereunder (17 CFR 1.20, 1.21, 1.22, 1.32 and 1.35). 

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 August 27, 1969, in Chicago, Illinois, 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, and (2) directing that the respondent shall 

cease and desist from violating the Commodity Exchange Act in the manner alleged 

herein. 

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. 

July 21, 1969 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

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