FORT LAUDERDALE, FL – Rico Cox of Fort Lauderdale, Florida, has been permanently banned from trading commodities and soliciting investments following a judgment entered by the U.S. District Court for the Southern District of Florida, the Commodity Futures Trading Commission (CFTC) announced Wednesday.
The court found Cox liable for fraudulently soliciting investments in commodity futures and misappropriating funds from at least 14 investors. The judgment, stemming from a lawsuit filed by the CFTC in May 2022, orders Cox to pay $710,667 in restitution to his victims, $339,300 in disgorgement, and a $1,017,900 civil monetary penalty. He is also permanently enjoined from violating the Commodity Exchange Act (CEA) and barred from registering with the CFTC.
Court findings revealed that Cox falsely presented himself as an experienced and successful futures trader. Critically, he failed to disclose a prior CFTC case from 2016 where he was found liable for similar fraudulent solicitation of funds. That previous judgment resulted in permanent trading and registration bans, as well as a $941,000 penalty.
To maintain the scheme, Cox fabricated account statements, falsely inflating profits and balances for his investors. In one instance, he presented a statement showing a $1,389,091.26 balance for an account that had, in reality, been closed with a zero balance. The court also determined that Cox directly misappropriated participant funds.
The CFTC cautioned that restitution orders do not guarantee full recovery of losses, as the defendant may lack sufficient assets. The agency affirmed its commitment to protecting customers and holding those who violate commodity trading laws accountable. Individuals who believe they may have been victimized by Cox, or who have information regarding potential violations, are encouraged to contact the CFTC through its hotline or online complaint system.
The case was led by CFTC staff members Susan B. Padove, Joseph J. Patrick, Venice M. Bickham, David A. Terrell, Scott R. Williamson, Robert T. Howell, and former staff member Cristina Covarrubias.
Source: CFTC.gov
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