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Commodity Futures Trading Commission 

CEA CASES 

NAME: DEAN WITTER & CO., INCORPORATED 

DOCKET NUMBER: 197 

DATE: AUGUST 31, 1972 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Dean Witter & Co., Incorporated, Respondent 

CEA Docket No. 197 

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. 1 et seq.) and the regulations made pursuant thereto, and 

this complaint and notice of hearing is issued stating the charges in that 

respect as follows: 

I 

Respondent Dean Witter & Co., Incorporated, a Delaware corporation with 

offices at 45 Montgomery Street, San Francisco, California 94104, is now, and 

was at all times material herein, a registered futures commission merchant under 

the Commodity Exchange Act and so engaged in business. 

II 

(a) At the times hereinafter stated, respondent Dean Witter & Co., 

Incorporated, in the regular course of its business as futures commission 

merchant, 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 

regulations. At all such times, the respondent corporation had to its credit 

with banks or other depositories, money and securities in varying amounts, held 

in segregated accounts and identified as customers' funds, representing deposits 

of margin by and trading profits accruing to such customers. 

(b) During the periods between July 21 and September 3, 1971, and September 6 

and October 7, 1971, the respondent corporation was continuously undersegregated 

in amounts ranging from $ 15,684.39 on September 2, 1971, to $ 413,768.51 on 

August 2, 1971, that is throughout the periods specified above, the total amount 

of customers' funds held in segregation as above described, was from $ 15,684.39 

to $ 413,768.51 less than the amount necessary to pay all credits and equities 

due to such customers. 

(c) On each business day during the periods specified above, the respondent 

corporation prepared and kept a record purporting to show the amount required to 

be held in segregation, and the amount segregated, which record indicated that 

the respondent corporation had in excess funds in segregation, whereas, in truth 

and in fact, the said firm was undersegregated as specified above. 

III 
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By reason of the facts alleged in this complaint, respondent Dean Witter & 

Co., Incorporated, wilfully violated sections 4d and 

4g of the Commodity Exchange Act (7 U.S.C. 6d, 6g), and sections 1.20, 1.21, 

1.22, 1.23, 1.32 and 1.35 of the regulations thereunder (17 CFR 1.20, 1.21, 

1.22, 1.23, 1.32, 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 purposes of this proceeding. Failure 

to file an answer will constitute an admission of all the 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 the complaint are admitted likewise 

shall constitute a waiver of hearing unless a hearing is requested. The 

respondent is hereby notified that unless hearing is waived, a hearing will be 

held in San Francisco, California, at a place therein and date 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) 

suspending or revoking the registration of the respondent as futures commission 

merchant, (2) 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 (3) directing that the respondent shall cease and desist from 

violating the Act and regulations 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. 

August 31, 1972 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

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