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Commodity Futures Trading Commission 

CEA CASES 

NAME: CHARLES KEESHIN, INC., CHARLES KEESHIN, SEYMOUR M. KEESHIN, AND HAROLD 

VISION 

CITATION: 18 Agric. Dec. 339 

DOCKET NUMBER: 89 

DATE: APRIL 27, 1959 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 5863) 

In re CHARLES KEESHIN, INC., CHARLES KEESHIN, SEYMOUR M. KEESHIN, AND HAROLD 

VISION. CEA Docket No. 89. Decided April 27, 1959. 

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

Privileges -- Consent Order

Respondents Charles Keeshin and Harold Vision consented to the issuance of an 

order suspending their registrations as floor brokers and denying them all 

trading privileges for specified periods. 

Mr. Benj. M. Holstein, for Commodity Exchange Authority. Mr. Richard A. 

Griffin, of Chicago, Illinois, 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. 

1952 ed., Chapter 1). The complaint and notice of hearing was issued by the 

Acting Secretary of Agriculture on November 6, 1958. The respondents are an 

Illinois corporation and three of its officers. The corporate respondent is 

registered as a futures commission merchant under the Commodity Exchange Act and 

respondents Charles Keeshin and Harold Vision are registered as floor brokers 

under the act. 

It is alleged in the complaint that the corporate respondent failed to treat 

and deal with customers' funds as belonging to such customers, failed to 

segregate and to account separately for such funds, used such funds to margin 

and guarantee the trades and secure and extend the credit of customers other 

than those for whom such funds were held, commingled customers' funds with funds 

belonging to the firm, and prepared and kept false records with respect to 

customers' funds, all in violation of sections 4d(2) and 4g of the act (7 U.S.C. 

1952 ed., §§ 6d(2), 6g), and sections 1.20, 1.21 and 1.22 of the rules and 

regulations issued thereunder (17 CFR 1.20, 1.21, 1.22). The complaint further 

charges that such violations were initiated and carried out under the 

supervision and direction of the individual respondents acting in their 

capacities as officers of the respondent corporation. 

None of the respondents filed an answer to the complaint within the twentyday period specified in the rules of practice (17 CFR 0.9), and on December 4, 

1958, the referee submitted a report in which he adopted as findings of fact the 

material allegations of the complaint, concluded that the respondents had 

wilfully violated the act as charged, and recommended sanctions against each of 

the four respondents. Thereafter, prior to any action by the Judicial Officer, 

counsel for all the respondents filed a petition to re-open and for hearing on 

behalf of respondents Charles Keeshin and Harold Vision only, and submitted 
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answers on their behalf. Counsel for the respondents stated that the failure to 

answer on behalf of these two respondents was due to counsel's misunderstanding 

of procedural requirements. The Judicial Officer granted the petition, ordered 

the answers filed 

in the proceeding, remanded the matter to the referee for hearing with respect 

to these two respondents, and entered a decision and order imposing sanctions 

against the two remaining respondents, Charles Keeshin, Inc., and Seymour 

Keeshin (17 Agric. Dec. 1193 (17 A.D. 1193)). 

A hearing was had in Chicago before Clarence A. Girard, Office of Hearing 

Examiners. The respondents were represented by Richard A. Griffin of Borenstein 

and Griffin, a Chicago law firm. Benj. N. Holstein, Office of the General 

Counsel, appeared for the complainant. 

On April 10, 1959, after the complainant had presented its evidence and while 

the hearing was in progress, respondents Charles Keeshin and Harold Vision, by 

their attorney, entered into a stipulation in which they admitted that 

respondent Charles Keeshin, Inc., was in an undersegregated condition in the 

amounts and during the periods mentioned in the complaint, and that respondents 

Charles Keeshin and Harold Vision, as officers of the corporation, were 

responsible for all of its acts, including such undersegregation. These two 

respondents also agreed to the entry of the order contained herein, without 

further proceedings. This stipulation and agreement was read into the record by 

counsel for the complainant, confirmed by counsel for the respondents, and the 

referee then declared the hearing closed (Tr. pp. 584-585). 

FINDINGS OF FACT

1. Respondent Charles Keeshin, Inc., a corporation organized under the laws 

of the State of Illinois with its principal office and place of business at 1019 

West Fulton Street, Chicago, Illinois, was at all times material herein a 

registered futures commission merchant under the Commodity Exchange Act, a 

clearing member of the Chicago Mercantile Exchange, and a member of the New York 

Mercantile Exchange. 

2. Respondent Charles Keeshin, an individual, whose address is 2933 Sheridan 

Road, Chicago, Illinois, was at all times material to this complaint chairman of 

the board of directors and treasurer of the respondent corporation, a registered 

floor broker under the Commodity Exchange Act, a member of the Chicago 

Mercantile Exchange, and a member of the New York Mercantile Exchange. 

3. Respondent Harold Vision, an individual, whose address is 143 North 

Parkside Avenue, Chicago, Illinois, was at all times material to this complaint 

secretary of the respondent corporation, 

a registered floor broker under the Commodity Exchange Act, and a member of the 

Chicago Mercantile Exchange. 

4. At all times between August 1 and September 9, 1958, inclusive, the 

respondent corporation had on its books accounts of customers who were trading 

in commodity futures subject to the Commodity Exchange Act and the rules and 

regulations issued thereunder, and had to its credit with a bank or with the 

Clearing House of the Chicago Mercantile Exchange varying sums of money held in 

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

margin by and trading profits belonging to such customers. 

5. On 25 business days during the period from August 1 through September 9, 

1958, the respondent corporation was undersegregated in amounts ranging from $ 

6,822 to $ 62,530.40, that is, on the 25 days mentioned the total amount of 

customers' funds held in segregation as above described was from $ 6,822 to $ 

62,530.40 less than the amount necessary to pay all credits and equities due to 

such customers. 
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6. Respondents Charles Keeshin and Harold Vision, as officers of respondent 

Charles Keeshin, Inc., were responsible for all the acts of the said 

corporation, including the undersegregation described in paragraphs 4 and 5 

hereof. 

CONCLUSIONS

The rules of practice under the Commodity Exchange Act provide that the 

Secretary, in his discretion, may allow a respondent to consent to an order at 

any time prior to hearing, provided the respondent submits for filing in the 

record "a stipulation or statement in which he admits at least those facts 

necessary to the Secretary's jurisdiction and agrees that an order may be 

entered against him" (17 CFR 0.4(b)). Although the rules make no reference to a 

consent order after the hearing has started, this should not be construed as a 

prohibition. Since the parties have arrived at an agreement which appears to be 

reasonable, they will be permitted to terminate the proceeding on that basis. 

Termination of the proceedings against Continental Grain Company, et al. (17 

Agric. Dec. 854 (17 A.D. 854)), and Murlas Brothers Commodities, Inc., et al. 

(17 Agric. Dec. 859 (17 A.D. 859)), was accomplished under similar 

circumstances. 

The facts admitted by respondents Charles Keeshin and Harold Vision in their 

stipulation have been adopted as the findings herein. These respondants were 

responsible for the fact that on 

the twenty-five days in question, the total amount of customers' funds which the 

corporate respondent had in segregation was less than the amount necessary to 

pay all credits and equities due to such customers. These respondents thereby 

violated the requirements of section 4(d)(2) of the act and sections 1.20, 1.21 

and 1.22 of the rules and regulations, as charged in the complaint. 

The complainant has filed a recommendation which recites that it has 

carefully considered the stipulation and waiver submitted by the respondents and 

the terms of the order to which they have agreed. The complainant points out 

that although the stipulation says nothing about the allegations in the 

complaint concerning false records and failure to prepare a segregation 

statement on two specific occasions, separate findings on these allegations are 

not recommended because these matters are connected with and are part of the 

principal charge of failure to treat and deal with customers' funds as required 

by law, and respondents Charles Keeshin and Harold Vision have admitted the 

corporation's dereliction in this regard and their responsibility for all the 

corporation's acts. Accordingly, no findings are made herein and no conclusions 

drawn with respect to the alleged failure to prepare a segregation statement on 

August 7 and September 9, 1958, nor with respect to the allegation that false 

records were kept. 

It is the opinion of the complainant that the proposed sanctions would be 

adequate, and that the prompt entry of the order to which the respondents have 

agreed, without further hearing or proceedings of any kind, would constitute a 

satisfactory disposition of this matter, serve the public interest, and 

effectuate the purposes of the Commodity Exchange Act. The complainant 

recommends that the stipulation and waiver be accepted and that the proposed 

order be issued terminating this proceeding. It is so concluded. 

ORDER

Effective thirty (30) days after the date of entry of this order, the 

registration of Charles Keeshin as a floor broker is suspended for a period of 

four (4) months, and the registration of Harold Vision as a floor broker is 

suspended for a period of three (3) months. 

Effective thirty (30 days after the date of entry of this order, all contract 

markets are hereby directed to refuse all trading privileges, direct or 

indirect, to Charles Keeshin for a period of 
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four (4) months and to Harold Vision for a period of three (3) months. 

Copies hereof shall be served upon the parties and upon each contract market. 

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