Fed. Sec. L. Rep. P 96,368 Joe G. Moody v. Bache & Co., Incorporated and Bob Peters

GEE, Circuit Judge:

The present case involves a broker’s liability for a customer’s losses on transactions in the commodities market. It raises issues of the applicability both of the securities acts of 1933 and 1934, 15 U.S.C. §§ 77a et seq. and 15 U.S.C. §§ 78a et seq., and of the Commodities Exchange Act, 7 U.S.C. §§ 1 et seq.

In March 1973, plaintiff Joe G. Moody opened a commodities account with defendant Bache & Co. on the urging of Bache’s representative, Robert Peters. Peters told Moody that he would invest for Moody according to the recommendations of Bache’s research department. In…