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Commodity Futures Trading Commission 

CEA CASES 

NAME: JOSEPH R. AWAD 

CITATION: 17 Agric. Dec. 601 

DOCKET NUMBER: 79 

DATE: JULY 7, 1958 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 5538) 

In re JOSEPH R. AWAD. CEA Docket No. 79. Decided July 7, 1958. 

Reporting Provisions -- Denial of Trading Privileges -- Default

Respondent failed to file an answer to the complaint and also failed to file 

exceptions to the hearing examiner's report. All contract markets are ordered 

to refuse all trading privileges to respondent for a 30-day period. 

Mr. Benjamin M. Holstein, for Commodity Exchange Authority. Mr. Will Rogers, 

Hearing Examiner. 

Decision by Thomas J. Flavin, Judicial Officer 

PRELIMINARY STATEMENT

This is a disciplinary proceeding under the Commodity Exchange Act (7 U.S.C. 

Chapter 1), instituted by a complaint issued under section 6(b) of the act March 

6, 1958, by the Assistant Secretary of Agriculture. Respondent is charged with 

knowingly and wilfully violating the reporting provisions of the act and the 

rules and regulations issued thereunder. A copy of the complaint and a copy of 

the rules of practice were served on respondent March 11, 1958. 

At the time of service of the complaint, respondent was notified, in effect, 

that an answer thereto should be filed within 20 days after such service and 

that, in accordance with section 0.9 of the rules of practice (17 CFR 0.9), 

failure to file an answer would constitute an admission of the facts alleged in 

the complaint and a waiver of oral hearing. Notwithstanding such notice, 

respondent has not filed an answer. The matter was referred to Will Rogers, 

Hearing Examiner, Office of Hearing Examiners, United States Department of 

Agriculture, for the preparation of a report without further investigation or 

hearing pursuant to section 0.9(c) of the rules of practice (17 CFR 0.9(c)). 

The hearing examiner filed a report May 23, 1958, recommending that respondent 

be denied all trading privileges on all contract markets for a period of 30 

days. No exceptions were filed to the hearing examiner's report. 

FINDINGS OF FACT

1. Respondent, Joseph R. Awad, is an individual with an office and place of 

business at 507 Fifth Avenue, Suite 300, New York, New York, c/o J. R. A. 

International Company. 

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

Chicago Board of Trade, was at all times material herein, a duly designated 

contract market under the act. 

3. On July 9 and 10, 1957, respondent had a net long open contract position 

in September 1957 lard futures on the Chicago Board of Trade of 1,040,000 pounds 

and 1,600,000 pounds, respectively. Respondent was in reporting status during 

such period and was required to report to the Commodity Exchange Authority with 
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respect to all transactions executed and all open contract positions held for 

his account in all lard futures on all 

boards of trade (exchanges) during such period, and with respect to all 

transactions by reason of which respondent's position was reduced below 

reporting levels. 

4. On July 9 and 10, 1957, while respondent was in reporting status as 

described in Finding of Fact 3, and on the business day immediately thereafter, 

July 11, 1957, when respondent's position was reduced below reporting levels, 

transactions in lard futures on the Chicago Board of Trade were executed for his 

account, but respondent failed and refused to report to the Commodity Exchange 

Authority with respect to such transactions. 

5. On June 19, 1957, an order was issued directing all contract markets to 

refuse to General Commerce Corporation all trading privileges for a period of 60 

days, effective July 22, 1957, because of the corporation's failure and refusal 

to file required reports on ten occasions within a period of approximately three 

months. In re General Commerce Corporation, 16 Agric. Dec. 495 (16 A.D. 495) 

(1957). At the time of the violations alleged in such proceeding, respondent 

was general manager of said corporation, and, on one occasion prior to the 

filing of the formal complaint against said corporation, respondent appeared at 

the New York office of the Commodity Exchange Authority to discuss reporting 

requirements. Subsequently, between July 16 and August 14, 1957, the Commodity 

Exchange Authority addressed three letters to the respondent calling his 

attention to his delinquency in reporting the transactions described herein and 

requesting that reports be submitted, but no reply was received. On August 27, 

1957, the respondent was reached by telephone and promised representatives of 

the Commodity Exchange Authority that the necessary reports would be filed, but 

no reports were received. 

CONCLUSIONS

Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) provides as follows: 

"It shall be unlawful for any person to make any contract for the purchase or 

sale of any commodity for future delivery on or subject to the rules of any 

contract market unless such person shall report or cause to be reported to the 

properly designated officer in accordance with the rules and regulations of the 

Secretary of Agriculture . . . (2) 

whenever such person shall directly or indirectly have or obtain a long or short 

position in any commodity or in any future of such commodity, equal to or in 

excess of such amount as shall be fixed from time to time by the Secretary of 

Agriculture . . . ." 

During the period in question, the quantity of lard futures fixed by the 

Secretary for reporting purposes pursuant to section 4i was 1,000,000 pounds (17 

CFR, 1957 Supp. 9.21). 

Respondent failed and refused to file required reports on three consecutive 

days. Such failure constitutes a violation of section 4i of the act and 

sections 9.10, 9.11 and 9.12 of the rules and regulations issued thereunder (17 

CFR 9.10, 9.11 and 9.12). The fact that respondent received ample notification 

of the reporting requirements and of his delinquency prior to the institution of 

this proceeding, and the fact that he was general manager of a corporation 

recently involved in similar violations, justify the conclusion that the 

violations herein were deliberate and wilful. Accordingly, all contract markets 

should be directed to refuse all trading privileges to respondent for a period 

of 30 days as recommended by complainant, such refusal to apply to all trading 

done and positions held by respondent directly or indirectly. 

ORDER
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Effective August 11, 1958, all contract markets shall refuse all trading 

privileges to respondent for a period of 30 days, such refusal to apply to all 

trading done and positions held by respondent directly or indirectly. 

A copy of this decision and order shall be served on the respondent and on 

each contract market. 

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