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Commodity Futures Trading Commission 

CEA CASES 

NAME: REUBEN EARL MCGUIGAN, ALIAS E. L. MCGUIGAN, ALIAS LOUIS J. BURNSTEIN, 

DOING BUSINESS AS INTERNATIONAL MARKET FORECAST BUREAU 

DOCKET NUMBER: 37 

DATE: JANUARY 3, 1946 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Reuben Earl McGuigan, alias E. L. McGuigan, alias Louis J. Burnstein, 

doing business as International Market Forecast Bureau, Respondent 

CE-A Docket No. 37 

Complaint and Notice of Hearing Under Section 6(b) of the Commodity Exchange 

Act 

There being reason to believe that the respondent has violated the Commodity 

Exchange Act (7 U.S.C. Secs. 1-17a), and the rules and regulations promulgated 

pursuant thereto, this complaint is issued alleging the following: 

1. 

The respondent, Reuben Earl McGuigan, is an individual using the several 

names above mentioned and doing business at 15 Moore Street, New York, New York, 

under the name of International Market Forecast Bureau. During all periods 

mentioned in this complaint the respondent advertised and represented himself to 

be in the business of selling market advice to traders in commodities for future 

delivery, particularly grains and cotton. 

2. 

The respondent, during the times and, by means of the actions set forth 

herein, attempted to manipulate the price of commodities for future delivery on 

or subject to the rules of boards of trade in violation of Section 6(b) of the 

Commodity Exchange Act. 

3. 

The respondent, during the times, and by means of the actions set forth 

herein, manipulated the price of commodities for future delivery on or subject 

to the rules of boards of trade in violation of Section 6(b) of the Commodity 

Exchange Act. 

4. 

During the period from August 1, 1945, to and including December 5, 1945, the 

respondent sent large numbers of telegrams, letters, and circulars to persons 

and firms throughout the United States advising purchases and sales of 

commodities for future delivery. Collect telegrams were sent not only to 

subscribers to respondent's forecasting service, who numbered less than 250, but 

also were sent unsolicited to many firms and individuals who were not 

subscribers to the service. 

5. 

During the period from June 14, 1945, to December 5, 1945, the respondent 

traded for his own account under the name of Edith Adelson through the firm of 

Irving Weis and Company, New York, New York, in grain and cotton for future 
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delivery in the following aggregate amounts and with financial results as 

follows: 

Grain futures purchased 2, 420,000 bushels

Grain futures sold 2,460,000 bushels

Cotton futures purchased 51,900 bales

Cotton futures sold 51,900 bales

 Net profit on above transactions, June 14, 1945, to December 5, 1945 $ 30,625.75

 

6. 

The telegrams, letters, and circulars sent and disseminated as described in 

paragraph 4 above were primarily for the purpose of manipulating the price of 

commodities to the benefit of the respondent in his speculative trading 

operations. 

7. 

The respondent, between August 1, 1945, and December 5, 1945, on numerous 

occasions, assumed a market position for his own account in commodities for 

future delivery, immediately after which he sent out large numbers of telegrams 

advising purchases or sales which would tend to influence prices in favor of the 

market position previously assumed by the respondent After assuming such market 

position and after having sent the telegrams mentioned, the respondent on 

frequent occasions made transactions opposite those advised in the telegrams. 

8. 

By the means set out in paragraph 7 above, the respondent took advantage of 

price movements caused by transactions made pursuant to his advice. 

9. 

The respondent attempted by various means to conceal the fact that he was 

trading in commodity futures for his own account in that: 

(a) The respondent informed representatives of the United States Department 

of Agriculture on September 5, 1945, that he did not trade in commodity futures 

for his own account while, as a matter of fact, he was 

on that date an active trader for his own account in the name of Edith Adelson, 

on the books of Irving Weis and Company, and had been an active trader in such 

account since at least June 14, 1945. 

(b) The respondent's account was carried in the name of Edith Adelson, which 

is the maiden name of the respondent's wife. The respondent forged the name of 

Edith Adelson to a Power of Attorney dated June 1, 1945, set out in Schedule A 

attached hereto, giving the respondent authority to make purchases and sales, 

but not giving authority for withdrawal of funds from the account. 

(c) On November 15, 1945, the respondent closed the account in the name of 

Edith Adelson and withdrew therefrom the credit balance of $ 19,500. On the 

following day, November 16, 1945, the respondent opened a new account on the 

books of Irving Weis and Company in the name of Louis J. Burnstein and deposited 

therein the sum of $ 19,500. Instructions covering this deposit wore made in 

the handwriting of the respondent on a Western Union telegram blank, set out in 

Schedule B attached hereto, over the forged signature of Edith Adelson. 

(d) On November 20, 1945, the respondent executed in his own handwriting a 

"Customer's Card", set out in Schedule C attached hereto, on a form provided by 

Irving Weis and Company. The respondent dated this card July 20, 1939, signed 

thereto the name of Louis J. Burnstein and entered thereon the nonexistent 

address of 140 St. Pauls Place, Brooklyn, New York. 
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(e) On November 23, 1945, the account carried in the name of Louis J. 

Burnstein was closed by the issuance of a check by Irving Weis and Company 

in the amount of $ 17,162.75, payable to the order of Louis J. Burnstein. The 

respondent presented this check for deposit in an account carried in the name of 

Edith Adelson at the Lawyers Trust Company, 14th Street and 8th Avenue, New 

York, New York, and the Lawyers Trust Company refused to accept it in view of 

the fact that the endorser, Louis J. Burnstein, was unknown to them. On 

November 27, 1945, the respondent opened an account on the books of Irving Weis 

and Company in the name of Reuben McGuigan and deposited therein the sum of $ 

18,000, included in which was the above described check for $ 17,162.75. 

(f) The respondent continued to trade in commodity futures under the name of 

Reuben McGuigan from the date of the opening of the account, November 27, 1945, 

to and including December 5, 1945. 

(g) In withdrawing funds from his account carried in the name of Edith 

Adelson on the books of Irving Weis and Company, respondent arranged with Irving 

Weis and Company to have checks drawn to the order of Edith Adelson as set out 

in Schedule D hereto, which checks respondent endorsed with the name "Edith 

Adelson", below which, in a number of instances, a partner of Irving Weis and 

Company executed an endorsement reading "Please pay cash to bearer", thus making 

the checks readily negotiable by respondent. 

Therefore, the respondent is hereby notified to be and appear at a hearing to 

be held at 10:00 a.m., Eastern Standard Time, on the 13th day of February, 1946, 

in Room 600-60 Beaver Street, New York, New York, 

before a referee to be designated by the Secretary of Agriculture, to conduct 

such hearing, and then and there show cause, if any there be, why an order 

should not be made directing that, until further notice of the secretary of 

Agriculture, all contract markets refuse all trading privileges to the 

respondent. 

The respondent will have 20 days after the receipt of this notice of hearing 

in which to file with the Secretary of Agriculture an answer in triplicate, 

fully and completely stating the nature of the defense and admitting or denying 

specifically in detail each material and relevant allegation of this complaint. 

Any allegations that are not answered will be deemed admitted for the purpose of 

this proceeding. 

It is ordered that this complaint and notice of hearing be served on the 

respondent by delivery of a true copy hereof to him by an employee of the 

Department of Agriculture or by registered mail at least 20 days prior to the 

date herein set for hearing. 

Done at Washington, D. C., this 3rd day of January, 1946 

/s/ Clinton P. Anderson 

Secretary of Agriculture 

Letter from Irving Weis & Co. 

Letter from Irving Weis & Co. 

Customer Card for Louis J. Burnstein 

Checks from a Public National Bank and Trust Company Account 
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