Jerome Cuppia

September 29, 1890 (age 75)

Pelham Manor, New York, United States

Cuppia began working on Wall Street as a runner for the brokerage firm of Craig and Jenks and quickly rose to the post of trader. While interested in stocks and bonds, Cuppia was more concerned with commodities. In 1916 he was a partner in Robertson and Company and became a member of the New York Cotton Exchange. An astute speculator, by 1917 he was believed to be worth more than half a million dollars. He enlisted in the navy that year and served as a stoker aboard the USS Massachusetts. In 1920 he moved to New York, where he formed the firm of Cuppia and Robertson. Three years later he organized a new firm, J. C. Cuppia and Company, which in 1926 was merged with E. A. Pierce and Company. In 1940, E. A. Pierce merged with other firms to form Merrill Lynch, E. A. Pierce and Cassatt. In 1925, Cuppia purchased a seat on the New York Curb Exchange (which became the American Stock Exchange in 1953) and started speculating in stocks and commodities. In 1929, Cuppia became a member of the Curb Exchange board of directors; he was reelected in 1932 and 1935, heading a liberal group called "the Young Turks. " While a new constitution was adopted, Cuppia lost his bid for the chairmanship. On March 28, 1940, Cuppia was served with a warrant of attachment, applied for by William J. Plate, a fellow member of the Curb Exchange and a broker at Pierce and Company. Plate alleged that Cuppia had fraudulently obtained $101, 647 from him between 1932 and 1939. According to Plate, Cuppia had advanced him $22, 500 in 1932 for the purchase of a seat on the Curb. In return, Plate had opened a checking account, giving one of Cuppia's friends, Marion Shade, power of attorney to draw on it. From 1932 to 1939, Plate had earned $159, 853 in commissions, all of which had been deposited in the account, and from which Shade had withdrawn $101, 647. Plate contended he was left with about $65 a week. Cuppia denied any wrongdoing, hinting broadly that Plate had brought suit at the suggestion of the conservative faction at the Curb, which was intent on ruining him. Friends urged Cuppia to countersue, but he held back, saying he would defend himself before the Curb Business Conduct Committee. However, in a letter to the committee dated April 1, 1940, Cuppia wrote that Plate's charges "are not wholly untrue. " The two men agreed that they would accept the committee's verdict and that the hearings should be held in camera to avoid scandal. The hearings began on April 3. Initial testimony supported Plate's contention. Cuppia had told Plate that the money would be kept for his financial future, perhaps for a partnership at Pierce and Company. Plate testified that he sued once he learned that there was only $692. 03 in an account he believed had close to $100, 000. Investigation revealed checks drawn to Mrs. Cuppia, one to a hotel in the Bahamas to pay for a vacation, and a total of $5, 000 that was used to purchase Cuppia's automobiles. In his defense, Cuppia produced a document signed by both men in 1932, indicating that Plate owed Mrs. Cuppia $164, 500. Plate claimed the document was false. It soon seemed that Cuppia would face new charges, but his allies on the committee found inconsistencies in Plate's testimony, which set the stage for Cuppia's appearance. Cuppia testified that his wife and the wife of another broker, Frank Hubbard, had invested in the brokerage house of Locke, Andrews and Forbes, among whose assets were seats on the New York Stock Exchange and the Curb Exchange. Since Plate had purchased one of the seats from the brokerage firm, there was no direct connection between Cuppia and Plate. Cuppia also testified that the checking account had been opened on Plate's insistence and that the withdrawals had been made to defray Plate's debt. Within a few days it became evident that the matter was far more complicated than originally thought and that both men had behaved strangely, as though they had something to hide. It was later revealed that Plate and Cuppia had engaged in commission splitting, a practice forbidden by both the SEC and the Curb. Cuppia had purchased a seat for Plate, in return for which he received a portion of his commissions out of the joint checking account. Cuppia resigned from his firm in 1940 and announced that he would cooperate with the committee, provided he was permitted a graceful exit from the financial community. Cuppia conceded he had violated Curb rules and told associates he planned to leave the country and move to South America. The contest with Plate was settled on July 31 with the payment by Cuppia to Plate of $7, 500. In 1941 the SEC investigated the matter, and it appeared that other officials, including members of both Curb factions, had been engaged in illegal practices. Cuppia testified on the condition that none of his testimony before the Committee on Business Conduct be made public. He admitted that he had arrangements not only with Plate but several other brokers as well. Within a few weeks it seemed the SEC itself was on trial for having failed to uncover the wrongdoing. The Cuppia scandal was soon forgotten. Cuppia, who returned to the United States to testify before the SEC, was never indicted. He settled in Montclair, New Jersey, a broken man, and died there. Curiously, none of his obituaries mentions the scandal.

Jerome Chester Cuppia

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trader stockbroker

Background

Jerome Chester Cuppia was born on September 29, 1890 in Pelham Manor, New York, United States. He was the son of Caesar Augustus Cuppia and Josephine Clementine Klugkist.

Education

He attended public schools and graduated from high school in 1907.

Career

Cuppia began working on Wall Street as a runner for the brokerage firm of Craig and Jenks and quickly rose to the post of trader. While interested in stocks and bonds, Cuppia was more concerned with commodities.

In 1916 he was a partner in Robertson and Company and became a member of the New York Cotton Exchange. An astute speculator, by 1917 he was believed to be worth more than half a million dollars. He enlisted in the navy that year and served as a stoker aboard the USS Massachusetts.

In 1920 he moved to New York, where he formed the firm of Cuppia and Robertson. Three years later he organized a new firm, J. C. Cuppia and Company, which in 1926 was merged with E. A. Pierce and Company. In 1940, E. A. Pierce merged with other firms to form Merrill Lynch, E. A. Pierce and Cassatt. In 1925, Cuppia purchased a seat on the New York Curb Exchange (which became the American Stock Exchange in 1953) and started speculating in stocks and commodities.

In 1929, Cuppia became a member of the Curb Exchange board of directors; he was reelected in 1932 and 1935, heading a liberal group called "the Young Turks. "

While a new constitution was adopted, Cuppia lost his bid for the chairmanship.

On March 28, 1940, Cuppia was served with a warrant of attachment, applied for by William J. Plate, a fellow member of the Curb Exchange and a broker at Pierce and Company. Plate alleged that Cuppia had fraudulently obtained $101, 647 from him between 1932 and 1939. According to Plate, Cuppia had advanced him $22, 500 in 1932 for the purchase of a seat on the Curb. In return, Plate had opened a checking account, giving one of Cuppia's friends, Marion Shade, power of attorney to draw on it. From 1932 to 1939, Plate had earned $159, 853 in commissions, all of which had been deposited in the account, and from which Shade had withdrawn $101, 647. Plate contended he was left with about $65 a week. Cuppia denied any wrongdoing, hinting broadly that Plate had brought suit at the suggestion of the conservative faction at the Curb, which was intent on ruining him. Friends urged Cuppia to countersue, but he held back, saying he would defend himself before the Curb Business Conduct Committee. However, in a letter to the committee dated April 1, 1940, Cuppia wrote that Plate's charges "are not wholly untrue. " The two men agreed that they would accept the committee's verdict and that the hearings should be held in camera to avoid scandal. The hearings began on April 3. Initial testimony supported Plate's contention. Cuppia had told Plate that the money would be kept for his financial future, perhaps for a partnership at Pierce and Company. Plate testified that he sued once he learned that there was only $692. 03 in an account he believed had close to $100, 000. Investigation revealed checks drawn to Mrs. Cuppia, one to a hotel in the Bahamas to pay for a vacation, and a total of $5, 000 that was used to purchase Cuppia's automobiles. In his defense, Cuppia produced a document signed by both men in 1932, indicating that Plate owed Mrs. Cuppia $164, 500. Plate claimed the document was false. It soon seemed that Cuppia would face new charges, but his allies on the committee found inconsistencies in Plate's testimony, which set the stage for Cuppia's appearance. Cuppia testified that his wife and the wife of another broker, Frank Hubbard, had invested in the brokerage house of Locke, Andrews and Forbes, among whose assets were seats on the New York Stock Exchange and the Curb Exchange. Since Plate had purchased one of the seats from the brokerage firm, there was no direct connection between Cuppia and Plate. Cuppia also testified that the checking account had been opened on Plate's insistence and that the withdrawals had been made to defray Plate's debt. Within a few days it became evident that the matter was far more complicated than originally thought and that both men had behaved strangely, as though they had something to hide. It was later revealed that Plate and Cuppia had engaged in commission splitting, a practice forbidden by both the SEC and the Curb. Cuppia had purchased a seat for Plate, in return for which he received a portion of his commissions out of the joint checking account. Cuppia resigned from his firm in 1940 and announced that he would cooperate with the committee, provided he was permitted a graceful exit from the financial community. Cuppia conceded he had violated Curb rules and told associates he planned to leave the country and move to South America. The contest with Plate was settled on July 31 with the payment by Cuppia to Plate of $7, 500. In 1941 the SEC investigated the matter, and it appeared that other officials, including members of both Curb factions, had been engaged in illegal practices. Cuppia testified on the condition that none of his testimony before the Committee on Business Conduct be made public. He admitted that he had arrangements not only with Plate but several other brokers as well. Within a few weeks it seemed the SEC itself was on trial for having failed to uncover the wrongdoing. The Cuppia scandal was soon forgotten. Cuppia, who returned to the United States to testify before the SEC, was never indicted.

He settled in Montclair, New Jersey, a broken man, and died there. Curiously, none of his obituaries mentions the scandal.

Achievements

He was a principal in the Taylor Cotton Company of Macon, Georgia. He called for a new constitution for the exchange that would give the president new powers and create the office of chairman.

Politics

Always ambitious, Cuppia became active in Democratic politics in the early 1930's, supporting the presidential bid of Franklin D. Roosevelt in 1932. He later claimed to have turned down an offer of a position on the newly formed Securities and Exchange Commission (SEC).

Personality

Cuppia had few friends among the generally conservative membership but was respected because of his wealth and contacts.

Connections

On June 12, 1918, he married Helen Raymond; they had two children.

Father:: Caesar Augustus Cuppia
Mother:: Josephine Clementine Klugkist
Spouse:: Helen Raymond

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Jerome Chester Cuppia

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