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Commodity Futures Trading Commission 

CEA CASES 

NAME: JOHN C. WEAVER & SONS 

CITATION: 33 Agric. Dec. 1519 

DOCKET NUMBER: 231 

DATE: NOVEMBER 1, 1974 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 16,107) 

In re JOHN C. WEAVER & SONS. CEA Docket No. 231. Decided November 1, 1974. 

Futures commission merchant -- failure to submit accurate and timely 

financial statements

Respondent's stipulation has been accepted, and the order herein is issued 

against respondent for violations of the Act and regulations in connection with 

its operations as a futures commission merchant in the submission of untimely 

and inaccurate financial statements. Respondent is ordered to cease and desist 

from such violations. 

Michael D. Weiner, for complainant. 

Ronald Lee Gilman, Memphis, Tenn., for respondent. 

Decision by John A. Campbell, Administrative Law Judge.

DECISION AND ORDER

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, alleging 

that the respondent John C. Weaver & Sons was at all times material a Tennessee 

partnership composed of John C. Weaver, Dudley S. Weaver, II, and Robert L. 

Weaver and has been since May 3, 1972, a registered futures commission merchant 

under the Commodity Exchange Act. The Complaint charges that the respondent 

filed delinquent and incorrect Statements of Financial Condition, CEA Form 1-FR. 

Such acts were alleged to have been wilfull and in violation of section 4f of 

the Commodity Exchange Act (7 U.S.C. 6f) and section 1.10 of the regulations 

issued thereunder (17 CFR 1.10). 

Prior to hearing the respondent agreed to a stipulation under section 0.4(b) 

of the Rules of Practice (17 CFR 0.4(b)) in which he 

(1) admits the facts hereunder as set forth in paragraphs 1 through 3 of the 

Findings of Fact, (2) waives oral hearing on the charges in the Complaint and 

(3) consents to the entry, without further proceedings, of a Decision and Order 

containing the facts admitted in such stipulation as the Findings of Fact for 

the purposes of this proceeding only, conclusions of law based on such findings, 

and the Order contained herein. 

FINDINGS OF FACT

1. Respondent John C. Weaver & Sons, a Tennessee partnership composed of John 

C. Weaver, Dudley S. Weaver, II, and Robert L. Weaver is now and has been since 

May 3, 1972, a registered futures commission merchant under the Commodity 

Exchange Act, engaged in trading in commodities for future delivery. Prior to 
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May 3, 1972, the firm did business under the name of Noland-Weaver and was 

registered as a futures commission merchant as of June 24, 1971. The 

partnership and each of the above-named partners are members of the New York 

Cotton Exchange, a designated contract market under the Commodity Exchange Act. 

2. As of December 31, 1971, and every six months thereafter, the firm was 

required by section 1.10 of the regulations issued pursuant to the Commodity 

Exchange Act (17 CFR 1.10) to prepare and submit to the Commodity Exchange 

Authority Form 1-FR, Statement of Financial Condition. 

3. Despite numerous reminders, CEA Form 1-FR was received as set forth in the 

following table: 

"As of" Date Due Date Date Received Certified By 

12-31-71 3-31-72 4-11-72 Dudley S. Weaver, II

6-30-72 9-30-72 10-16-72 Dudley S. Weaver, II

12-31-72 3-31-73 4-27-73 Dudley S. Weaver, II

6-30-73 9-30-73 10-18-73 Dudley S. Weaver, II

In addition to the delinquent filing of Form 1-FR detailed above, material 

errors, such as improper classifications, omission of required supporting dates, 

and erroneous computation of a proprietary safety factor were found in those 

Form 1-FR submitted for the years 1972 and 1973, including that of December 31, 

1973, due on March 31, 1974, certified by Robert L. Weaver. 

CONCLUSIONS

By reason of the facts set forth above, John C. Weaver & Sons violated 

section 4f of the Commodity Exchange Act (7 U.S.C. 6f) and section 1.10 of the 

regulations issued thereunder (17 CFR 1.10) by failing to submit accurate and 

timely Statements of Financial Condition, CEA Form 1-FR. 

The complainant states that Administrative Officials of the Commodity 

Exchange Authority have carefully considered the stipulation submitted by the 

respondent. The Administrative Officials believe that the prompt entry of the 

proposed Order would constitute a satisfactory disposition of this case, serve 

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

recommends, therefore, that the stipulation be accepted and the proposed Order 

be issued. 

ORDER

Effective on the date of service of this Order upon the respondent John C. 

Weaver & Sons, the respondent shall cease and desist from filing with the 

Commodity Exchange Authority required Form 1-FR more than three months after the 

date as of which it reports the respondent's financial condition, and (2) filing 

with the Commodity Exchange Authority required Form 1-FR when said form contains 

material errors including, but not limited to, improper classifications, 

omission of required supporting dates, and erroneous computation of the 

proprietary safety factor. 

A copy of this Decision and Order shall be served upon the respondent and on 

each contract market. 

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