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Commodity Futures Trading Commission 

CEA CASES 

NAME: I. USISKIN AND COMPANY, INC., I. USISKIN AND COMPANY, ISADORE USISKIN, 

SIDNEY FASHENA, AND HOWARD S. FISHER 

CITATION: 21 Agric. Dec. 212 

DOCKET NUMBER: 101 

DATE: MARCH 15, 1962 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 7646) 

In re I. USISKIN AND COMPANY, INC., I. USISKIN AND COMPANY, ISADORE USISKIN, 

SIDNEY FASHENA, AND HOWARD S. FISHER. CEA Docket No. 101. Decided March 15, 

1962. 

Customers' Accounts -- Suspension of Registration -- Denial of Trading 

Privileges -- Consent Order

Respondents admitted the violations charged and consented to the sanctions 

ordered. 

Mr. Earl L. Saunders, for Commodity Exchange Authority. Mr. Ben Ivan Melnicoff,

of Washington, D. C., for respondents. 

Decision by Thomas J. Flavin, Judicial Officer 

PRELIMINARY STATEMENT

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

§ 1 et seq.), hereinafter referred to as the Act. It is alleged in the 

complaint that the corporate respondent, I. Usiskin and Company, Inc., 

improperly handled customers' funds, failed to maintain adequate segregation 

records, and failed to keep books and records in the form and manner required by 

the Act and the regulations issued pursuant to the Act. The complaint further 

alleges that the acts and transactions of the corporate respondent were carried 

out under the direction of respondent Howard S. Fisher in his capacity as vice 

president of the respondent corporation and manager of its Chicago office, and 

that such acts and transactions were at all times subject to the supervision and 

control of respondents Isadore Usiskin and Sidney Fashena, the principal 

stockholders and president and secretary-treasurer, respectively, of the 

respondent corporation and the sole partners in the respondent partnership, I. 

Usiskin and Company. In conclusion, it is alleged that the respondents 

willfully violated sections 4d(2) and 4g of the Act (7 U.S.C. 6d(2) and 6g) and 

sections 1.20, 1.21, 1.22, 1.32, 1.35, and 1.36 of the regulations (17 CFR 1.20, 

1.21, 1.22, 1.32, 1.35, and 1.36). 

No hearing has been held. The respondents have filed a document, under 

section 0.4(b) of the rules of practice (17 CFR 0.4(b)), in which they admit the 

facts alleged in the complaint, waive hearing, and consent to entry of the order 

hereinafter set forth. 

FINDINGS OF FACT

1. Respondent I. Usiskin and Company, Inc., is an Illinois corporation with 

its principal office and place of business at Room 1045, 141 West Jackson 

Boulevard, Chicago 4, Illinois. The said corporation is now and was at all 

times mentioned in the complaint a clearing member of the Chicago Board of Trade 

and a registered futures commission merchant under the Commodity Exchange Act. 
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2. Respondents Isadore Usiskin and Sidney Fashena, individuals, are now and 

were at all times mentioned in the complaint the president and the secretarytreasurer, respectively, of the aforesaid I. Usiskin and Company, Inc., and the 

sole partners in a New York partnership doing business under the firm name of I. 

Usiskin and Company, with offices and a place of business at 11 Broadway, New 

York 4, New York. The said partnership 

is now and was at all times material herein a registered futures commission 

merchant under the Commodity Exchange Act. At all times material herein up to 

April 1961, respondents Isadore Usiskin and Sidney Fashena were the only 

shareholders of the aforesaid corporation, each of the said individual 

respondents holding 50 percent of its capital stock, and at all times thereafter 

each of the said individual respondents has owned and held 33 1/3 percent of 

such capital stock. Each of the said individual respondents is now and was at 

all times material herein a member of the New York Produce Exchange and a 

registered floor broker under the Commodity Exchange Act, and at all such times 

respondent Sidney Fashena was also a member of the Chicago Board of Trade. 

3. Respondent Howard S. Fisher, an individual whose business address is Room 

1045, 141 West Jackson Boulevard, Chicago 4, Illinois, is now and was at all 

times material herein a vice president of the respondent corporation, the 

manager of its Chicago office, a member of the Chicago Board of Trade, and a 

registered floor broker under the Commodity Exchange Act. In April 1961, 

respondent Howard S. Fisher acquired 331/3 percent of the capital stock of 

respondent I. Usiskin and Company, Inc., and has owned and held the same since 

that time. 

4. The acts and transactions hereinafter described were carried out under the 

direction of respondent Howard S. Fisher in his capacity as vice president of 

the respondent corporation and manager of its Chicago office, and such acts and 

transactions were at all times subject to the supervision and control of 

respondents Isadore Usiskin and Sidney Fashena. 

5. The Chicago Board of Trade (Board of Trade of the City of Chicago) and the 

New York Produce Exchange are now and were at all times mentioned in the 

complaint duly designated contract markets under the Commodity Exchange Act. 

6. At the times hereinafter stated, respondent I. Usiskin and Company, Inc., 

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

in commodity futures subject to the provisions of the Commodity Exchange Act and 

regulations. At all such times, respondent I. Usiskin and Company, Inc., had to 

its credit with a bank, the Chicago Board of Trade Clearing Corporation, or 

other depository, 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. 

7. On twelve business days between February 13, 1961, and June 12, 1961, to 

wit, February 13, February 14, February 15, May 22, May 23, May 24, May 25, May 

26, May 29, May 31, June 9, and June 12, respondent I. Usiskin and Company, 

Inc., was under-segregated in amounts ranging from $ 5,336 on May 31 to $ 98,533 

on June 12 -- that is, the total amount in customers' funds held in segregation 

as described in paragraph 6 was insufficient, by the aforesaid sums, to pay all 

credits and equities due to such customers. 

8. On December 1, 1960, and December 12, 1960, and on June 1, June 2, June 5, 

June 6, June 7, and June 8, 1961, respondent I. Usiskin and Company, Inc., 

failed to make any computation or permanent record, as of the close of the 

market on each of the said business days, of the amount of money, securities, 

and property required to be held in segregated account in order to pay all 

credits and equities due to its customers. On twenty-three additional business 

days in December 1960 and January 1961, the daily computation and record of 

funds to be held in segregation was incomplete and inaccurate to an extent which 
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made it impossible to determine whether the funds so held were in fact 

sufficient to pay all credits and equities due to customers. 

9. During the period from November 16, 1960, through May 21, 1961, respondent 

I. Usiskin and Company, Inc., received securities to margin, guarantee, and 

secure the commodity trades and contracts of its customers, but the said 

respondent failed to prepare and maintain any record of such securities, 

including a description thereof, the name and address of the customer from whom 

received, and the dates when the same were received from and when returned to 

such customer, or otherwise disposed of, together with the facts and 

circumstances of such other disposition. 

10. During the period from November 16, 1960, through May 31, 1961, 

respondent I. Usiskin and Company, Inc., failed to prepare and keep a record 

showing, separately for each account carried on its books, all commodity futures 

transactions executed for such account, including the date, price, quantity, 

market, commodity, and future. 

11. Early in 1960 and prior to the acts and omissions described above, an 

examination of the books and records of respondent I. Usiskin and Company, Inc., 

by the Commodity Exchange Authority disclosed that the said respondent was not 

properly preparing a daily permanent record of customers' funds required to be 

in segregation, that it was not maintaining a record of securities received from 

its customers to margin and guarantee the trades and contracts of such 

customers, and that it was not maintaining a record showing all commodity 

futures transactions executed for each account carried on its books, including 

the details of such transactions. Representatives of the Commodity Exchange 

Authority called these matters to the attention of respondents Howard S. Fisher 

and Sidney Fashena in March 1960, and requested them to correct the deficiencies 

in question in order that the records of the respondent corporation would comply 

with the provisions of the Commodity Exchange Act and regulations, and the said 

individual respondents promised that this would be done. 

CONCLUSIONS

The respondents have admitted the factual allegations of the complaint, and 

these have been adopted as the findings of fact in this proceeding. 

Section 4d(2) of the Act requires each futures commission merchant to treat 

and deal with the funds of a customer "as belonging to such customer" and to 

account separately for such funds, and prohibits the commingling of such funds 

with funds of the futures commission merchant, or the use of such funds "to 

margin or guarantee the trades or contracts, or to secure or extend the credit, 

of any customer or person other than the one for whom the same are held." 

Sections 1.20, 1.21, and 1.22 of the regulations contain additional detailed 

requirements with respect to customers' funds. Section 1.32 of the regulations 

requires that each futures commission merchant make a daily computation, based 

upon his accounting records, of the amount of money which must be in segregated 

account in order to comply with the provisions of the Act. Section 1.36 of the 

regulations requires that each futures commission merchant keep, in permanent 

and readily accessible form, a record of all securities and property received 

from customers in lieu of money to margin, guarantee, or secure the commodity 

trades and contracts of such customers, including a description of the 

securities and property received from each customer, the name and address of 

such customer, the dates when such securities and property were received from 

and when returned to such customer, or otherwise disposed of, together with the 

facts and circumstances of such other disposition. 

Section 1.35 of the regulations requires that each futures commission 

merchant prepare regularly and promptly, and keep systematically and in 

permanent form, a record of transactions showing, separately for each account, 
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all commodity futures transactions executed for such account, including the 

date, price, quantity, market, commodity, and future. 

Section 4g of the Act provides for the suspension or revocation of the 

registration of any futures commission merchant or floor broker who violates any 

of the provisions of the Act, or any of the rules or regulations of the 

Secretary thereunder, or who fails or refuses to keep the books and records 

pertaining to his transactions or those of his customers in the form and manner 

required by the Secretary. 

The facts admitted by the respondents show that on twelve business days 

between February 13, 1961, and June 12, 1961, the corporate respondent, I. 

Usiskin and Company, Inc., was in an undersegregated condition; that the 

deficits were substantial, reaching a maximum of more than $ 98,000; that on 31 

business days between December 1, 1960, and June 8, 1961, the corporate 

respondent's segregation record was either nonexistent or incomplete and 

inaccurate to an extent which made it impossible to determine therefrom the 

sufficiency of the funds held in segregated account; and that the corporate 

respondent, during the period November 16, 1960, through May 31, 1961, failed to 

prepare and maintain a record of securities that it received from its customers 

or a record showing, separately for each account carried on its books, the 

commodity futures transactions executed for such account. These acts and 

omissions were clear violations of the provisions of the Act and the 

regulations. 

The frequency and the continuing nature of the infractions, and the fact that 

many of them occurred after similar infractions had been called to the attention 

of respondents Fisher and Fashena and they had been informed of the necessity 

for corrective action, justify the conclusion that the violations were willful 

as alleged in the complaint. 

The complainant states that it has carefully considered the proposed order. 

It is of the opinion that the proposed sanctions are sufficient, and that the 

prompt entry of such an order without further proceedings would serve the public 

interest and effectuate the purposes of the Act. The complainant recommends, 

therefore, that the respondents' waiver and consent be accepted and that the 

proposed order be issued. It is so concluded. 

ORDER

The registration of respondent I. Usiskin & Company, Inc., as a futures 

commission merchant is hereby suspended for a period of 90 days, effective on 

the 30th day after the date of entry of this order, and all contract markets are 

hereby directed to refuse all trading privileges to the said I. Usiskin & 

Company, Inc., for said period of 90 days, such refusal to apply to all trading 

done and positions held by the said I. Usiskin & Company, Inc., directly or 

indirectly, Provided, However, that only the first 30 days of said period of 

suspension of registration and refusal of trading privileges shall become 

effective as of the said effective date, and that the final 60 days of the said 

period of suspension of registration and refusal of trading privileges shall not 

become effective unless, after complaint, notice, and hearing in accordance with 

established procedure, respondent I. Usiskin & Company, Inc., should be found to 

have violated the Commodity Exchange Act within one year from the date of entry 

of this order, in which event the Secretary of Agriculture may, without further 

notice to respondent I. Usiskin & Company, Inc., issue a supplemental order 

making effective forthwith the 60-day remainder of the said period of suspension 

of registration and refusal of trading privileges. 

The registration of respondent Isadore Usiskin as a floor broker is hereby 

suspended for a period of 10 days, effective on the 30th day after the date of 

entry of this order, and all contract markets are hereby directed to refuse all 

trading privileges to the said Isadore Usiskin for the said period of 10 days, 

such refusal to apply to all trading done and positions held by the said Isadore 

Usiskin, directly or indirectly, Provided, However, that the aforesaid 

suspension of registration and refusal of trading privileges shall not become 
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effective unless, after complaint, notice, and hearing in accordance with 

established procedure, respondent Isadore Usiskin should be found to have 

violated the Commodity Exchange Act within one year of the date of this order, 

or directly or through the partnership respondent or any other device to have in 

any way continued all or any part of the business of the corporate respondent as 

a futures commission merchant under said act during the period of the effective 

suspension of the corporation's registration as a futures commission merchant, 

in either of which events the Secretary of Agriculture may, without further 

notice to respondent Isadore 

Usiskin, issue a supplemental order making effective forthwith the suspension of 

registration and refusal of trading privileges. 

The registration of respondent Sidney Fashena as a floor broker is hereby 

suspended for a period of 10 days, effective on the 30th day after the date of 

entry of this order, and all contract markets are hereby directed to refuse all 

trading privileges to the said Sidney Fashena for the said period of 10 days, 

such refusal to apply to all trading done and positions held by the said Sidney 

Fashena, directly or indirectly, Provided, However, that the aforesaid 

suspension of registration and refusal of trading privileges shall not become 

effective unless, after complaint, notice and hearing in accordance with 

established procedure, respondent Sidney Fashena should be found to have 

violated the Commodity Exchange Act within one year of the date of this order, 

or directly or through the partnership respondent or any other device to have in 

any way continued all or any part of the business of the corporate respondent as 

a futures commission merchant under said act during the period of the effective 

suspension of the corporation's registration as a futures commission merchant, 

in either of which events the Secretary of Agriculture may, without further 

notice to respondent Sidney Fashena, issue a supplemental order making effective 

forthwith the suspension of registration and refusal of trading privileges. 

The registration of respondent Howard S. Fisher as a floor broker is hereby 

suspended for a period of 90 days, effective on the 30th day after the date of 

entry of this order, and all contract markets are hereby directed to refuse all 

trading privileges to the said Howard S. Fisher for the said period of 90 days, 

such refusal to apply to all trading done and positions held by the said Howard 

S. Fisher, directly or indirectly. 

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