UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT
March 28, 1974
ARTHUR N. ECONOMOU AND ARTHUR N. ECONOMOU & CO., INC., PETITIONERS,
UNITED STATES DEPARTMENT OF AGRICULTURE, RESPONDENT.
Petition for review of order of the Department of Agriculture suspending petitioners as futures commission merchants under the Commodity Exchange Act (7 U.S.C. § 1 et seq.) and enjoining petitioners from operating as such without the minimum financial requirements established by section 1.17 of the Department's regulations. 17 C.F.R. § 1.17. Petition granted; order set aside.
Before: KAUFMAN, Chief Judge, SMITH and ANDERSON, Circuit Judges.
Petitioners, who are no longer in business as futures commission merchants under the Commodity Exchange Act seek review of a 90-day suspension order, advancing numerous grounds, including estoppel, lack of evidence of violation and of willfulness. We need not address most of these, since it appears that the essential finding of willfulness, now passionately protested, was made in a proceeding instituted without the customary warning letter, which the Judicial Officer conceded might well have resulted in prompt correction of the claimed insufficiencies. Under these circumstances, the finding of willfulness appears erroneous on the record taken as a whole, and the sanctions imposed unwarranted.
The petition for review is granted and the order set aside.
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