Related Federal Cases
- Vivek Ramaswamy Rejects VP Offer, Focusing on Presidential Ambition… · Georgia
- Wall Street Firms, Financial Malfeasance, New York NY, 2023 · Texas
- Rico Tomas Garcia, Hand Sanitizer Scam, CO, 2023 · North Carolina
- Kenneth Thom Admits $2M Investment Scam, Manhattan NY, 2023 · North Carolina
- Michael Smith, AI-Generated Song Fraud, Manhattan NY, 2023 · North Carolina
North Carolina Man Arrested for Defrauding Commodities Investors
Nicholas Cox, a 34-year-old North Carolina resident and co-owner of Integra Capital Management LLC, was arrested in Denton, N.C., today for defrauding commodities trading investors of more than $3.2 million.
According to the indictment, Cox and his co-conspirator, Rodney Whitney, engaged in a scheme to defraud investors in commodity trading pools operated by Cox and Whitney through Integra between September 2006 and January 2009. Integra was established for the purpose of pooling investors’ funds in commodity pools, and investing in commodity futures and foreign currency exchange (forex) trading.
Cox and Whitney allegedly provided false and fraudulent information, including prospectuses, contracts, tax forms, account statements and other documents, to current and prospective investors to obtain and misappropriate more than $3.29 million in investor funds. They falsely represented, among other things, that Integra’s managers had more than 30 years of combined market experience, and that Integra paid dividends of 2 to 5 percent of the investor’s initial investment, which was derived from Integra’s trading profits.
The indictment alleges that Cox and Whitney used the monies invested by later investors to pay promised monthly investment returns to earlier investors, to purchase real estate, to fund other business ventures, and to purchase automobiles and other personal goods and services. Whitney was charged on March 2, 2011, in a criminal information for his role in the scheme, and pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to commit money laundering on March 21, 2011.
Cox faces one count of conspiracy to commit mail fraud, seven counts of mail fraud, and one count of conspiracy to commit money laundering. The maximum sentence for each count of mail fraud and conspiracy to commit mail fraud is 20 years in prison, and the maximum sentence for each count of conspiracy to commit money laundering is 10 years in prison.
The case is being prosecuted by Trial Attorneys Nicole H. Sprinzen and Luke B. Marsh of the Criminal Division’s Fraud Section and Benjamin Bain-Creed of the U.S. Attorney’s Office for the Western District of North Carolina. The case is being investigated by the U.S. Postal Inspection Service.
An indictment is merely a charge and defendants are presumed innocent until proven guilty. This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force to investigate and prosecute financial crimes.
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News