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Commodity Futures Trading Commission 

CEA CASES 

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

VISION 

CITATION: 17 Agric. Dec. 1193 

DOCKET NUMBER: 89 

DATE: DECEMBER 23, 1958 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 5725) 

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

VISION. CEA Docket No. 89. Decided December 23, 1958. 

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

Privileges

The petition of respondents Charles Keeshin and Harold Vision to reopen after 

default is granted and the matter is remanded to the hearing examiner for the 

purpose of hearing with respect to these respondents. It is concluded that the 

remaining respondents violated provisions of the act and regulations thereunder 

with respect to customers' funds. The registration of respondent Charles 

Keeshin, Inc., as a futures commission merchant is revoked and trading 

privileges denied until further order of the Secretary and trading privileges to 

respondent Seymour M. Keeshin are denied for a period of six months. 

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

Griffin, of Chicago, Illinois, for respondents. Mr. Clarence H. Girard, Hearing 

Examiner. 

Decision by Thomas J. Flavin, Judicial Officer

This is a disciplinary proceeding under the Commodity Exchange Act (7 U.S.C. 

1952 ed. Chapter 1), instituted by a 

complaint and notice of hearing issued under section 6(b) of the act (7 U.S.C. 

1952 ed. § 9) November 6, 1958, by the Acting Secretary of Agriculture. The 

complaint names as respondents Charles Keeshin, Inc., an Illinois corporation, 

and three individuals, Charles Keeshin, Seymour M. Keeshin and Harold Vision, 

who are, respectively, Chairman of the Board of Directors and Treasurer, 

President, and Secretary of said corporation. 

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 it 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 and 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. 

At the time of service of the complaint, each respondent was notified, in 

effect, that an answer thereto should be filed within 20 days after such service 
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and that, in accordance with section 0.9 of the rules of practice (17 CFR 0.9), 

failure to file an answer would constitute an admission of the facts alleged in 

the complaint and a waiver of oral hearing. Notwithstanding such notice, none 

of the respondents filed an answer. The matter was referred to Clarence H. 

Girard, Hearing Examiner, Office of Hearing Examiners, United States Department 

of Agriculture, for the preparation of a report without further investigation or 

hearing pursuant to section 0.9(c) of the rules of practice. The hearing 

examiner filed a report December 4, 1958, recommending that the corporate 

respondent's registration as a futures commission merchant be revoked, that the 

registrations of Charles Keeshin and Harold Vision as floor brokers be suspended 

for a period of six months and that all contract markets be directed to refuse 

all trading privileges to the corporate respondent until further order of the 

Secretary 

and to each of the individual respondents for a period of six months. 

On December 17, 1958, the attorney for all the respondents filed, in effect, 

a petition to reopen after default or to rehear with respect to respondents 

Charles Keeshin and Harold Vision only and submitted answers to the complaint on 

behalf of such respondents. Respondents' attorney states that these two 

respondents failed to file timely answers due, in effect, to a misunderstanding 

with respect to procedure and complainant does not object to the relief 

requested in the petition to reopen. The petition of respondents Charles 

Keeshin and Harold Vision to reopen after default is hereby granted, the answers 

submitted in their behalf are hereby filed in this proceeding and the matter is 

remanded to the hearing examiner for the purpose of hearing with respect to 

these respondents. However, the issuance of an order as to the remaining 

respondents is appropriate without further procedure. 

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 Seymour M. Keeshin, an individual, whose address is 4300 Marine 

Drive, Chicago, Illinois, was at all times involved herein President of the 

respondent corporation. 

3. The acts hereinafter described were initiated and carried out in part at 

least under the supervision and direction of respondent Seymour M. Keeshin 

acting in his capacity as President of the respondent corporation. 

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 August 1 through September 9, 1958, 

inclusive, 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. On each business day during the above period, except August 7 and 

September 9, 1958, the respondent corporation prepared and kept a record 

purporting to show the amount required to be held in segregation, and the amount 

segregated, which record indicated that the respondent corporation had excess 

funds in segregation in amounts ranging from $ 473.60 to $ 24,029.10, whereas 

the said corporation was undersegregated as specified above. On August 9, 1958, 

no record of funds in segregation was prepared. 

CONCLUSIONS

The facts set forth in the Findings of Fact clearly show that the corporate 

respondent, under the supervision and direction in part of Seymour M. Keeshin, 

knowingly 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 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 respondent corporation, and prepared and kept 

false records with respect to customers' funds, all in wilful violation of 

Sections 4d(2) and 4g of the Commodity Exchange 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 offenses are serious. They violate provisions of the act in which 

Congress provided, among other purposes, for the protection of customers of 

registered futures commission merchants against a complete disregard of the 

trust relationship between such a merchant and his customers. On the undisputed 

facts before us, the wrongful acts are admittedly wilful. Under the 

circumstances, we conclude that the registration 

of respondent Charles Keeshin, Inc., as a futures commission merchant should be 

revoked and that all contract markets should be directed to refuse all trading 

privileges to the corporate respondent until further order of the Secretary and 

to Seymour M. Keeshin for a period of six months. 

ORDER

Effective December 29, 1958, the registration of respondent Charles Keeshin, 

Inc., as a futures commission merchant is revoked. 

Effective on the 30th day after the date of this order all contract markets 

shall refuse all trading privileges, direct or indirect, to Charles Keeshin, 

Inc., until further order of the Secretary of Agriculture and to Seymour M. 

Keeshin for a period of six months. 

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

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