Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: BECKER BROKERAGE CO., SAMUEL H. BECKER, AND PHILIP D. BECKER 

DOCKET NUMBER: 111 

DATE: JUNE 28, 1963 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Becker Brokerage Co., Samuel H. Becker, and Philip D. Becker, Respondents 

CEA Docket No. 111 

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

Act 

There is reason to believe that the respondents, Becker Brokerage Co., Samuel 

H. Becker, and Philip D. Becker, have violated the Commodity Exchange Act (7 

U.S.C. Chapter 1), hereinafter referred to as the act, and the regulations made 

pursuant thereto (17 CFR, Part 1), hereinafter referred to as the regulations. 

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 Becker Brokerage Co. is an Illinois corporation with its principal 

office and place of business at 1008 West Randolph Street, Chicago 7, Illinois. 

The said corporation is now and was at all times material to this complaint a 

clearing member of the Chicago Mercantile Exchange and a registered futures 

commission merchant under the act. 

II 

Respondents Samuel H. Becker and Philip D. Becker, individuals, each of whose 

business address is 1008 West Randolph Street, Chicago 7, Illinois, are now and 

were at all times material to this complaint members of the Chicago Mercantile 

Exchange and registered floor brokers under the act. Respondents Samuel H. 

Becker and Philip D. Becker are now and were at all times material to this 

complaint the president and vice-president, respectively, the owners of the 

capital stock, and the managers of the business of respondent Becker Brokerage 

Co. 

III 

The acts and transactions on the part of respondent Becker Brokerage Co. 

hereinafter described were carried out under the direction, supervision and 

control of respondents Samuel H. Becker and Philip D. Becker in their capacity 

as the principal officers, owners, and managers of the business thereof. 

IV 

The Chicago Mercantile Exchange is now and was at all times material to this 

complaint a duly designated contract market under the Commodity Exchange Act. 

V 

The orders and the futures transactions referred to in this complaint relate 

to frozen whole egg futures and to shell egg futures on the Chicago Mercantile 
Page 2 

Exchange. Such contracts could have been used for (a) hedging transactions in 

interstate commerce in eggs or the products or byproducts thereof, (b) 

determining the price basis of transactions in interstate commerce in eggs, and 

(c) delivering eggs sold, shipped, or received in interstate commerce for the 

fulfillment of such futures contracts. 

VI 

During the period June 22 through October 4, 1962, respondent Becker 

Brokerage Co., in its capacity as futures commission merchant, carried 40 

customers' accounts which were controlled under powers of attorney by one Irving 

Eisenberg, who during the period August 30 through October 4, 1962, also carried 

a personal trading account with Becker Brokerage Co. 

VII 

During the period August 30 through October 4, 1962, respondents, Becker 

Brokerage Co., Samuel H. Becker and Philip D. Becker, engaged in a course of 

action wherein they permitted Irving Eisenberg to place orders for the execution 

of transactions in egg futures on 

the Chicago Mercantile Exchange without designating the identity of the account 

or accounts for which such orders were placed, and, after the orders were 

executed, permitted Irving Eisenberg to allocate the resulting transactions 

between his own account and the controlled accounts. Such allocations resulted 

in losses totaling approximately $ 26,000 in the accounts of customers which 

were controlled by Irving Eisenberg and profits of approximately $ 4500 in his 

own account. 

VIII 

On January 29, 1963, when authorized representatives of the Commodity 

Exchange Authority requested the respondents to furnish true and correct 

information as to the meaning of the records of respondent Becker Brokerage Co. 

pertaining to the orders given it by Irving Eisenberg and the allocation of the 

orders among Eisenberg's own account and the accounts over which he exercised 

power of attorney, the respondents falsely represented that in all instances the 

allocations of the orders were given by Irving Eisenberg at the time the orders 

were placed with the respondent corporation or almost immediately thereafter. 

IX 

By reason of the facts set forth in this complaint, respondents, Becker 

Brokerage Co., Samuel H. Becker and Philip D. Becker, attempted to deceive, 

cheat and defraud, and did deceive, cheat and defraud 

customers of Becker Brokerage Co. in wilful violation of section 4b of the act 

(7 U.S.C. 6b), and furnished false or incorrect information as to the meaning of 

records kept by Becker Brokerage Co. pertaining to transactions in commodities 

for future delivery in wilful violation of section 1.35 of the regulations under 

the act (17 CFR 1.35). 

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

served upon the said respondents. The respondents 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 25, D. C., 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 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 allegations of this complaint and a waiver of hearing. The 

respondents are hereby notified that unless hearing is waived, either expressly 

or by failure to file an answer, or by filing an answer in which all of the 
Page 3 

material allegations of fact contained in the complaint are admitted and a 

hearing is not requested, a hearing will be held at 10:00 a.m., local time, on 

the 17th day of September, 1963, in Chicago, Illinois, at a place therein to be 

specified later, before a referee designated to conduct such 

hearing. At such hearing the respondents will have the right to appear and show 

cause, if any there be, why an order should not be made revoking, or suspending 

the registration of respondent Becker Brokerage Co. as futures commission 

merchant, suspending the registrations of respondents Samuel H. Becker and 

Philip D. Becker as floor brokers, and directing that all contract markets 

refuse all trading privileges to each respondent for such period of time as may 

be determined. 

It is ordered that this complaint and notice of hearing be served on the 

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

Done at Washington, D. C., this 

28th day of June 1963. 

/s/ John P. Duncan, Jr. 

John P. Duncan, Jr. 

Assistant Secretary 

LOAD-DATE: June 12, 2008 
Page 4