Home Commodities CFTC charges recidivist fraudster for fooling 14 clients into commodity futures scam

CFTC charges recidivist fraudster for fooling 14 clients into commodity futures scam

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In addition, and not surprisingly, Rico Cox didn’t disclose to clients that he was the subject of a previous CFTC enforcement action in the Southern District of Florida which resulted in a $940,000 judgment against him for fraudulently soliciting funds to trade in a managed commodity futures account. 

The Commodity Futures Trading Commission has filed a civil enforcement action against Florida resident Rico Cox who, allegedly and for a second time, fraudulently solicited and accepted funds intended for commodity futures trading.

Rico Cox, who has never been registered with the CFTC, received at least $842,900 from at least 14 individuals from December 2019 until now, according to the CFTC, which added that he misappropriated at least $367,979 of the participant funds for direct personal benefit.

The CFTC is seeking restitution to defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA), as charged.

“Rico Cox is a recidivist fraudster who, despite a prior commodity fraud judgment against him, has again lied to participants about his experience and trading skill, and, in this case has stolen funds deposited with him for futures trading,” said CFTC Acting Director of Enforcement Gretchen Lowe.

The complaint alleges that Cox made false claims that he was a successful trader with years of experience trading futures contracts, that he profitably traded participants’ funds and sent participants false statements including account statements, emails, and screenshots falsely showing profitable trading. The “recidivist fraudster”, however, lost most of the participant funds that he did trade, according to the financial watchdog.

In addition, and not surprisingly, Rico Cox didn’t disclose to clients that he was the subject of a previous CFTC enforcement action in the Southern District of Florida which resulted in a $940,000 judgment against him for fraudulently soliciting funds to trade in a managed commodity futures account, the CFTC stated.

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