Wednesday, June 29 2022

washington d.c. – The Commodity Futures Trading Commission announced today that it has filed a civil suit in the Southern District of Florida against Rico Cox of Fort Lauderdale, Florida. The complaint alleges that, for a second time, Cox fraudulently solicited and accepted funds, this time at least $842,900 intended for trading commodity futures. Cox was never registered with the CFTC.

In the context of litigation, the CFTC requests compensation to defrauded investors, restitution of ill-gotten gainscivil monetary penaltiespermanent trade and registration bansand a permanent injunction against further violations of the Trade in Goods Act (CEA), as charged.

“Rico Cox is a repeat fraudster who, despite an earlier commodity fraud judgment against him, again lied to participants about his trading experience and skills and, in this case, stole funds deposited with from him for futures trading,” the CFTC’s acting director said. of running Gretchen Lowe.

Background to the case

The complaint alleges that, beginning around December 2019 and continuing to date, Cox has persuaded at least 14 people to transfer at least $842,900 to him for the alleged purpose of trading commodity futures. In fact, Cox misappropriated at least $367,979 of participants’ funds for direct personal gain.

The complaint alleges that Cox knowingly made fraudulent and material misrepresentations and omitted material facts when soliciting participants, including making false statements that he was a successful trader with years of experience trading forward contracts.

According to the complaint, Cox said he traded participants’ funds profitably and sent participants false statements, including account statements, emails and screenshots that falsely showed profitable trades. In fact, according to the complaint, Cox lost most of the participant funds he traded.

Cox also failed to disclose that he had been the subject of a previous CFTC enforcement action in the southern district of florida which resulted in a judgment of $940,000 against him for Fraudulently soliciting funds to transact in a Managed Commodity Futures Account. [See CFTC Press Release No. 7383-16]

The Law Enforcement Division personnel responsible for this case are Cristina Covarrubias, Joseph J. Patrick, Venice M. Bickham, David A. Terrell, Scott R. Williamson, and Robert T. Howell.

CFTC Commodity Pool Fraud Notice

The CFTC has published several advisories and articles on client protection fraud, including the Commodity Pool Fraud Advisory, which provides information on a type of fraud involving individuals and companies, often unregistered, offering investments in commodities. raw material pools. The CFTC also urges the public to check a company’s registration with the Commission before committing funds. If not registered, a client should be wary of providing funds to this entity. A company’s registration status can be found using NFA BASIC.

Clients and others may report suspicious activity or information, such as possible violations of commodity trading laws, to the Enforcement Division through a toll-free hotline 866-FON-CFTC ( 866-366-2382) or file a report or complaint online or contact the CFTC’s Whistleblower Office. Whistleblowers are eligible to receive between 10 and 30 percent of collected monetary penalties paid by the CFTC’s Client Protection Fund funded by monetary penalties paid to the CFTC by CEA violators.


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