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Commodity Futures Trading Commission 

CEA CASES 

NAME: FAGAN AND COMPANY, AND ALBERT E. FAGAN 

DOCKET NUMBER: STIPULATION 44 

DATE: OCTOBER 19, 1959 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Fagan and Company, and Albert E. Fagan 

Stipulation of Compliance No. 44 

Fagan and Company is a partnership located at 50 Broadway, New York 5, New 

York, which enjoys membership privileges on the New York Produce Exchange. 

Albert E. Fagan is a partner of the said Fagan and Company, a member of the New 

York Produce Exchange and a registered floor broker under the Commodity Exchange 

Act. Fagan and Company and Albert E. Fagan have been advised by the Commodity 

Exchange Authority of an investigation made by it of certain transactions in 

cottonseed oil futures ordered by the said Albert E. Fagan on behalf of the said 

Fagan and Company and executed on the New York Produce Exchange on December 9, 

1958. The facts concerning these transactions are as follows: 

On or about December 9, 1958, Albert E. Fagan instructed Jack W. Sommers, a 

floor broker on the New York Produce Exchange, to make two so-called "switch" 

trades effecting, (1) the purchase of 20 contracts of March cottonseed oil 

futures for the account of Fagan and Company and the sale of 20 contracts of May 

cottonseed oil futures for the account of Fagan and Company, which sale was 

subsequently changed to the account of one Lou Holts, and (2) the sale of 20 

contracts of March cottonseed 

oil futures for the account of Fagan and Company and the purchase of 20 

contracts of May cottonseed oil futures for the account of Fagan and Co., which 

purchase was subsequently changed to the account of the said Lou Holts. Both 

transactions were to be executed at a premium of two points for the May 

contracts over the March contracts. Also, transaction (1) was to be made at the 

high price for the day, and transaction (2) was to be made at the low price for 

the day. The orders ware executed by broker Sommers as follows: 

Bought Sold 

Clearing Price and Clearing Customer Broker Member Quantity Member Broker Customer

Fagan & Sommers Coleman & Co. 20 Mar. @ 1303 Orvis Preston 

 Company O'Cone Orvis 20 May @ 1305 McFadden Sommers Holts 

Preston Orvis 20 Mar. @ 1283 Coleman & Co. Sommers Fagan & 

Company 

Holts Sommers McFedden 20 May @ 1285 Orvis O'Cone 

The Commodity Exchange Authority has advised Fagan and Company and Albert E. 

Fagan that in its opinion the transactions above described are in violation of 

the Commodity Exchange Act and the regulations thereunder, particularly those 

portions relating to wash trades and the requirement that all trading be done 

openly and competitively. 
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No complaint with respect to such violations has been issued and the said 

Fagan and Company and Albert E. Fagan are desirous of disposing of the matter by 

entering into a stipulation of compliance, as authorised 

by section 0.4(a) of the Rules of Practice under the Commodity Exchange Act (17 

CFR, 0.0-0.28). 

Therefore, Fagan and Company and Albert E. Fagan stipulates that the above 

statements regarding the transactions of December 9, 1958, are true, and agree 

to desist from such practices in the future and to comply fully with the 

requirements of the Commodity Exchange Act and the regulations of the Secretary 

of Agriculture thereunder; and specifically to refrain from entering into wash 

trades and to refrain from entering orders which call for or encourage execution 

otherwise than by open and competitive means. 

Fagan and Company and Albert E. Fagan have been informed that the Commodity 

Exchange Authority may, in connection with its regulatory activities, publicize 

the facts concerning the transactions discussed herein in order that floor 

brokers, futures commission merchants, and all other users of the futures 

markets may be advised of the views of the Commodity Exchange Authority 

regarding matters of the type covered herein. 

/s/ Fagan & Company 

Fagan and Company 

By /s/ Albert E. Fagan 

Partner 

/s/ Albert E. Fagan 

Albert E. Fagan 

Witnessed by: 

/s/ Leroy C. Curtis 

(Signed in New York, New York, on October 19, 1959) 

LOAD-DATE: June 16, 2008 
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