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Commodity Futures Trading Commission 

CEA CASES 

NAME: WILLARD E. PLATT, GEORGE F. FREY, JR., OLIVER M. HIBBERD, PATRICK M. SHEA, 

HENRY C. GATLIN, F & G COMMODITIES, AND RALPH N. PETERS & CO. 

CITATION: 24 Agric. Dec. 97 

DOCKET NUMBER: 112 

DATE: FEBRUARY 4, 1965 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 9609) 

In re WILLARD E. PLATT, GEORGE F. FREY, JR., OLIVER M. HIBBERD, PATRICK M. SHEA, 

HENRY C. GATLIN, F & G COMMODITIES, AND RALPH N. PETERS & CO. CEA Docket No. 

112. Decided February 4, 1965. 

Fictitious or wash sales -- Records -- Suspension or registration--Denial of 

trading privileges -- Consent -- Willard E. Platt

The registration of Willard E. Platt as floor broker is suspended for 20 days 

and his trading privileges on the contract markets are denied for a like period 

for engaging in fictitious or wash sales and for violation of the records 

requirements of the act and the regulations issued thereunder. 

Mr. Earl L. Saunders for Commodity Exchange Authority. Mr. J. R. Blomquist, of 

Chicago, Ill., for respondent Willard E. Platt. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is an administrative proceeding under the Commodity Exchange Act (7 

U.S.C. 1 et seq.), instituted by a complaint and notice of hearing issued under 

section 6(b) of the act (7 U.S.C. 9) by the Assistant Secretary of Agriculture. 

The complaint names seven respondents and charges them with violating certain 

provisions of the Commodity Exchange Act and the regulations issued thereunder. 

Willard E. Platt, one of the respondents, is a registered floor broker under the 

act, a member of the Chicago Board of Trade and a partner in respondent Ralph N. 

Peters & Co. He is charged with offering to enter into and entering into 

transactions which were of the character of and which constituted wash sales and 

fictitious sales, and failing to keep full and complete records of futures 

transactions, in wilful violation of sections 4c and 4g of the act (7 U.S.C. 6c, 

6g), and section 1.35 of the regulations (17 CFR 1.35). 

No hearing has been held with respect to any of the respondents. On January 

25, 1965, respondent Willard E. Platt submitted for filing in the record, under 

section 0.4(b) of the Rules of Practice (17 CFR 0.4(b)), a stipulation in which 

he admits the facts hereinafter set forth, waives hearing on the charges, and 

consents to the entry of the order contained herein. Respondent Platt has 

requested that such order be made effective as soon as possible. 

FINDINGS OF FACT

1. The Board of Trade of the City of Chicago, hereinafter called the Chicago 

Board of Trade, is now and was at all times material herein a duly designated 

contract market under the Commodity Exchange Act. 

2. Respondent Willard E. Platt, an individual whose address is Room 770, 141 

West Jackson Boulevard, Chicago, Illinois, is now and was at all times material 
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herein a registered floor broker under the Commodity Exchange Act, a member of 

the Chicago Board of Trade and a partner in respondent Ralph N. Peters & Co. 

3. The transactions referred to in the complaint in this proceeding relate to 

contracts for the purchase or sale of May 1963 soybean oil or May 1963 soybean 

meal futures on the Chicago Board of Trade. Such contracts could have been used 

for (a) hedging transactions in interstate commerce in soybean oil or soybean 

meal or the products or by-products thereof, or (b) determining the price basis 

of transactions in interstate commerce in soybean oil or soybean meal, or (c) 

delivering soybean oil or soybean meal sold, shipped, or received in interstate 

commerce for the fulfillment of such futures contracts. 

4. On December 18, 1962, respondent Willard E. Platt in his capacity as floor 

broker received from respondent F & G Commodities an order or orders to purchase 

and to sell for the same account 19 tank cars of the May 1963 soybean oil 

futures on the Chicago Board of Trade. Acting with knowledge that respondent 

Oliver M. Hibberd had purchased 17 tank cars of May 1963 soybean oil futures at 

8.94 cents per pound from respondent Patrick M. Shea, respondent Platt filled 

part of the order (17 cars) by means of purported transactions with respondents 

Hibberd and Shea. In so filling such order or orders, respondent Platt, with 

the consent of respondents Hibberd and Shea, made entries on trading cards, 

which he turned in to respondent F & G Commodities purporting to show a sale of 

12 tank cars of May 1963 soybean oil futures at 8.94 cents per pound to A. E. 

Staley Manufacturing Co. as opposite clearing member and a sale of five tank 

cars of May 1963 soybean oil futures at 8.94 cents per pound to John E. Brennan 

& Co. as opposite clearing member, the names of such opposite clearing members 

having been 

given to him by respondent Hibberd, the purchase of 17 tank cars of May 1963 

soybean oil futures at 8.94 cents per pound from Hayden, Stone & Co., Inc., as 

opposite clearing member, such name having been given to him by respondent Shea. 

At the time respondent Platt so filled the order or orders it was understood by 

respondent Platt that respondents Hibberd and Shea would alter, or cause to be 

altered, the records pertaining to the transaction between respondents Hibberd 

and Shea so as to reflect that respondents Hibberd and Shea traded with 

respondent Platt rather than with each other. The remainder of the order or 

orders received by respondent Platt from respondent F & G Commodities was filled 

by respondent Platt by a purchase of one tank car of the May 1963 soybean oil 

future at 8.96 cents per pound from William E. Casselman, a sale of one tank car 

of the same future at the same price to Joseph J. Drowinski, a purchase of one 

tank car of such future at 8.95 cents per pound from Oliver M. Hibberd, and a 

sale of one tank car of the same future at the same price to Lawler J. Joyce. 

5. On December 19, 1962, respondent Platt, acting for respondent Ralph N. 

Peters & Co., purchased 23 contracts of May 1963 soybean meal futures from 

Donald R. Ryan who was acting for his own account carried by Lawrence J. Ryan & 

Comany. 

6. On December 19, 1962, respondent Willard E. Platt in his capacity as a 

floor broker received from respondent F & G Commodities an order or orders to 

purchase and to sell for the same account 24 contracts (2400 tons) of the May 

1963 soybean meal future on the Chicago Board of Trade. Respondent Platt 

participated in the filling of 23 contracts of the order or orders by means of a 

purported transaction between respondent Platt and the said Donald R. Ryan and a 

purported transaction between respondents Platt and Frey. Respondent Platt so 

participated in filling the order or orders by the following acts: (1) turning 

in to F & G Commodities his trading card relating to the transaction referred to 

in paragraph 5 above; (2) by causing the said Donald R. Ryan to show on his 

trading card that respondent Platt had acted for respondent F & G Commodities in 

this transaction; and (3) by preparing and turning in to respondent Ralph N. 

Peters & Co. a trading card purporting to show the purchase of 23 contracts of 

May 1963 soybean meal futures from F & G Commodities as opposite clearing 

member. Respondent Platt so acted with the understanding that respondent Frey 
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would participate in so filling the order or orders by preparing and turning in 

to F & G Commodities a trading card purporting to show a sale of 23 contracts of 

May 1963 soybean meal futures by respondent Frey to respondent Ralph N. Peters & 

Co. as opposite clearing member. 

7. On December 19, 1962, respondent Platt, acting as floor broker for 

respondent Ralph N. Peters & Co., sold 10 contracts (1,000 tons) of May 1963 

soybean meal futures at $ 65.10 per ton to David B. Wrisley, who was acting for 

his own account carried at the firm of Weinberg, Shanley and Wrisley. 

8. On December 19, 1962, respondent Willard E. Platt participated in the 

filling of the remaining one contract of the order or orders referred to in 

paragraph 6 by means of a purported transaction between respondent Platt and 

David B. Wrisley and a purported transaction between respondents Platt and Frey. 

Respondent Platt so participated in filling the order or orders by the following 

acts: (1) causing David B. Wrisley to change his trading card with respect to 

the transaction referred to in paragraph 7 above so as to indicate that 

respondent Platt had acted for F & G Commodities; (2) by preparing and turning 

in to respondent F & G Commodities trading cards which purported to show the 

sale of 10 contracts of May 1963 soybean meal futures to Weinberg, Shanley & 

Wrisley as opposite clearing member; and (3) by altering the trading card which 

he turned in to respondent Ralph N. Peters & Co. relating to the transaction 

referred to in paragraph 7 so as to indicate that he had sold the 10 contracts 

of May 1963 soybean meal futures to respondent F & G Commodities as opposite 

clearing member. Respondent Platt so acted with the understanding that 

respondent Frey would participate in so filling the order or orders by preparing 

and turning in to F & G Commodities trading cards purporting to show the 

purchase of 10 contracts of the May 1963 soybean meal future from Ralph N. 

Peters & Co. as opposite clearing member. Respondent Platt entered into such 

purported purchases and sales with the understanding that one of the 10 

contracts of May 1963 soybean meal futures so purchased and sold was in partial 

fulfillment of the order or orders referred to in paragraph 6 above and that the 

remaining 9 contracts so purchased and sold would be placed in the personal 

account of respondent Frey. 

CONCLUSIONS

Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) makes it unlawful for 

any person to offer to enter into, or enter into, any transaction "(A) if such 

transaction is, is of the character of, or is commonly known to the trade as, a 

'wash sale' . . . or is a fictitious sale." The facts described in Finding of 

Fact 4 demonstrate that respondent Platt simultaneously bought and 

sold for the same account the same quantities of the same future and at the same 

prices. The facts described in Findings of Fact 6 and 8 demonstrate that 

respondent Platt made the trades referred to therein knowing that they were 

offset or washed out by other trades which were made by another floor broker for 

the same accounts for which respondent Platt was acting and in the same 

quantities of the same future and at the same prices as respondent Platt's 

trades. Such transactions which give the appearance of being purchases and 

sales but which avoid any actual change in ownership are wash sales or 

fictitious sales within the meaning of section 4c of the act. In re Jean 

Goldwurm, et al 7 Agric. Dec. 265 (7 A.D. 265) (1948). It is concluded, 

therefore, that the said respondent wilfully violated section 4c of the act as 

charged in the complaint. 

Section 4g of the Commodity Exchange Act (7 U.S.C. 6g) requires a registered 

floor broker to keep records of customers' transactions in the form and manner 

specified by the Secretary. Section 1.35 of the regulations (17 CFR 1.35) sets 

forth certain details with respect to the keeping of records by members of 

contract markets and others. It provides, in pertinent part, that "each member 

of a contract market shall keep full, complete, and systematic records of all 

commodity futures transactions . . . made by or through him, on or subject to 
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the rules of a board of trade." As described in Findings of Fact 6 and 8, 

respondent Platt prepared his trading cards in such a manner that they failed to 

show the true opposite clearing members. It is concluded, therefore, that 

respondent Platt violated the foregoing requirements of section 4g of the act 

and section 1.35 of the regulations, and that such violations were knowing and 

wilful. 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the proposed stipulation and order, 

and that they believe that the proposed sanctions are adequate and that the 

prompt entry of such an order would constitute a satisfactory disposition of 

this case as against respondent Platt, serve the public interest, and effectuate 

the purposes of the Commodity Exchange Act. The complainant recommends, 

therefore, that the stipulation and waiver be accepted and that the proposed 

order be issued. It is so concluded. 

ORDER

The registration of respondent Willard E. Platt as a floor broker is hereby 

suspended for a period of twenty (20) days, effective on the fifteenth day after 

the date of entry of this order, and all contract markets shall refuse all 

trading privileges to the said Willard E. Platt for the said period of twenty 

days, such refusal to apply to all trading done and positions held by him 

directly or indirectly. 

A copy of this Decision and Order shall be served on each of the respondents 

and on each contract market. 

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