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Commodity Futures Trading Commission 

CEA CASES 

NAME: WILLARD E. PLATT, GEORGE F. FREY, JR., OLIVER M. HIBBERD, PATRICK M. SHEA, 

HENRY C. GATLIN, F & G COMMODITIES, AND RALPH N. PETERS & CO. 

CITATION: 24 Agric. Dec. 93 

DOCKET NUMBER: 112 

DATE: FEBRUARY 2, 1965 

DOCUMENT TYPE: DECISION AND ORDER 

AGRICULTURE DECISIONS

BEFORE THE SECRETARY OF AGRICULTURE

UNITED STATES DEPARTMENT OF AGRICULTURE

(No. 9608) 

In re WILLARD E. PLATT, GEORGE F. FREY, JR., OLIVER M. HIB-BERD, PATRICK M. 

SHEA, HENRY C. GATLIN, F & G COMMODITIES, AND RALPH N. PETERS & CO. CEA Docket 

No. 112. Decided February 2, 1965. 

Fictitious or wash sales -- Suspension of registration -- Denial of trading 

privileges -- Consent -- George F. Frey, Jr.

The registration of George F. Frey, Jr. as floor broker is suspended for a 

period of 20 days and his trading privileges on the contract markets are denied 

for a like period for engaging in fictitious or wash sales in violation of the 

act. 

Mr. Earl L. Saunders for Commodity Exchange Authority. Mr. Richard K. Decker,

of Chicago, Ill., for respondent George F. Frey, Jr. 

Decision by Thomas J. Flavin, Judicial Officer

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 issued under 

section 6(b) of the act by the Assistant Secretary of Agriculture. 

Respondent George F. Frey, Jr. is one of seven respondents in this 

proceeding. The complaint charges that the said respondent offered to enter 

into and entered into transactions which were of the character of and which 

constituted wash sales and fictitious sales, in wilful violation of section 4c 

of the act (7 U.S.C. 6c). 

No hearing has been held with respect to any of the respondents. On January 

19, 1965, respondent George F. Frey, Jr. submitted for filing in the record, 

under section 0.4(b) of the Rules of Practice (17 CFR 0.4(b)), a stipulation in 

which he admits the facts hereinafter set forth under the "Findings of Fact," 

waives hearing on the charges in the complaint, and consents to 

the entry of the order contained herein. Respondent Frey has requested that 

such order be made effective as soon as possible. 

FINDINGS OF FACT
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1. The Board of Trade of the City of Chicago, hereinafter called the Chicago 

Board of Trade, is now and was at all times material to the complaint a duly 

designated contract market under the Commodity Exchange Act. 

2. Respondent George F. Frey, Jr., an individual whose address is 141 West 

Jackson Boulevard, Chicago, Illinois, was at all times material to the complaint 

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

Chicago Board of Trade and a partner in respondent F & G Commodities, and is now 

a registered floor broker under the act and a member of the Chicago Board of 

Trade. 

3. The transactions referred to herein relate to contracts for the purchase 

or sale of May 1963 soybean meal futures on the Chicago Board of Trade. Such 

contracts could have been used for (a) hedging transactions in interstate 

commerce in soybean meal or the products or byproducts thereof, or (b) 

determining the price basis of transactions in interstate commerce in soybean 

meal, or (c) delivering soybean meal sold, shipped, or received in interstate 

commerce for the fulfillment of such futures contracts. 

4. On December 19, 1962, respondent George F. Frey, Jr., acting with 

knowledge that respondent Willard E. Platt in his capacity as floor broker -- 

(a) held an order or orders to purchase and to sell for the same customer of 

respondent F & G Commodities 24 contracts (2,400 tons) of the May 1963 soybean 

meal future on the Chicago Board of Trade, which constituted an order for a 

"wash sale"; and 

(b) had purchased 23 contracts of May 1963 soybean meal futures from Donald 

R. Ryan and had sold 10 contracts of May 1963 soybean meal futures to David B. 

Wrisley all for respondent Ralph N. Peters & Co. 

participated in filling the aforesaid order or orders to buy and sell for the 

same customer of F & G Commodities by entering into purported transactions 

between himself and respondent Platt. 

Respondent Frey participated in filling the said order or orders by the 

following acts: 

(a) by preparing and turning in to respondent F & G Commodities a trading 

card purporting to show the sale of 23 contracts of May 1963 soybean meal 

futures to respondent Ralph N. Peters & Co. as opposite clearing member; and 

(b) by preparing and turning in trading cards to respondent F & G Commodities 

purporting to show the purchase of 10 contracts of May 1963 soybean meal futures 

from respondent Ralph N. Peters & Co. as opposite clearing member. Of the 

contracts so purported purchased, one was in partial fulfillment of the 

aforesaid order or orders and, the remaining contracts were taken into the 

personal account of respondent Frey. 

Respondent Frey so acted with the understanding that respondent Platt would 

participate in so filling the order or orders by turning in his trading card 

relating to the aforesaid purchase from Donald R. Ryan to F & G Commodities, 

rather than to respondent Ralph N. Peters & Co.; by causing the said Donald R. 

Ryan to show on his trading card that respondent Platt had acted for respondent 

F & G Commodities in such transaction; by preparing and turning in a trading 

card to respondent Ralph N. Peters & Co. purporting to show that purchase of 23 

contracts of May 1963 soybean meal futures had been from F & G Commodities as 

opposite clearing member; by altering a trading card which respondent Platt 

turned in to respondent Ralph N. Peters & Co. relating to the aforesaid sale to 

David B. Wrisley so as to indicate that respondent Platt had sold the 10 

contracts of May 1963 soybean meal futures to respondent F & G Commodities as 

opposite clearing member rather than to Weinberg, Shanley & Wrisley; by causing 

David B. Wrisley to change his trading card with respect to such transaction so 

as to indicate that respondent Platt had acted for respondent F & G Commodities; 

and by preparing and turning in to respondent F & G Commodities trading cards 

which purported to show the sale of the 10 contracts to Weinberg, Shanley and 

Wrisley as opposite clearing member. Of the contracts so purported sold, one 
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was in partial fulfillment of the aforesaid order or orders, and the remaining 

contracts were for the personal account of respondent Frey. 

CONCLUSIONS

Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) makes it unlawful for 

any person to offer to enter into, or enter into, any transaction "(A) if such 

transaction is, is of the character of, or is commonly known to the trade as, a 

'wash sale' . . . or is a fictitious sale." The facts admitted by respondent 

Frey clearly show that he made the trades in question knowing that they were 

offset or washed out by other trades which were made by another floor broker for 

the same accounts for which respondent Frey was acting and in the same 

quantities of the same future and at the same prices as respondent Frey's 

trades. Such transactions which give the appearance of being purchases and 

sales but which avoid any actual change in ownership are wash sales or 

fictitious sales within the meaning of section 4c of the act. In re Jean 

Goldwurm, et al. 7 Agric. Dec. 265 (7 A.D. 265) (1948). It is concluded, 

therefore, that the said respondent violated the act as charged in the 

complaint. 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the proposed stipulation and order, 

and that they believe that the proposed sanctions are adequate and that the 

prompt entry of such an order would constitute a satisfactory disposition of 

this case as against respondent Frey, serve the public interest, and effectuate 

the purposes of the Commodity Exchange Act. The complainant recommends, 

therefore, that the stipulation and waiver be accepted and that the proposed 

order be issued. It is so concluded. 

ORDER

The registration of respondent George F. Frey, Jr. as a floor broker is 

hereby suspended for a period of twenty (20) days, effective on the fifteenth 

day after the date of entry of this order, and all contract markets shall refuse 

all trading privileges to the said George F. Frey, Jr. for the said period of 

twenty days, such refusal to apply to all trading done and positions held by him 

directly or indirectly. 

A copy of this Decision and Order shall be served on each of the respondents 

and on each contract market. 

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