Fort Lauderdale, FL – May 31, 2022 – Rico Cox, of Fort Lauderdale, Florida, is facing civil charges brought by the Commodity Futures Trading Commission (CFTC) for allegedly defrauding investors out of at least $842,900 intended for commodity futures trading. The complaint, filed in the Southern District of Florida, alleges this is the second time Cox has engaged in such fraudulent activity.
According to the CFTC, Cox fraudulently solicited funds from at least 14 individuals beginning in December 2019, claiming he would use the money to trade commodity futures. However, the agency alleges he misappropriated at least $367,979 for personal use.
The complaint details that Cox falsely presented himself as an experienced and successful trader, providing fabricated account statements, emails, and screenshots to investors showing profitable trades. In reality, the CFTC asserts that Cox lost the majority of the funds he did trade with.
Notably, Cox was previously subject to a CFTC enforcement action in the Southern District of Florida, resulting in a $940,000 judgment against him for similar fraudulent activity (CFTC Press Release No. 7383-16). He remains unregistered with the CFTC.
The CFTC is seeking restitution for 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). Acting Director of Enforcement Gretchen Lowe stated that Cox is a “recidivist fraudster” who continued to deceive investors despite a prior judgment.
Individuals with information about potential violations of commodity trading laws are encouraged to contact the CFTC via its toll-free hotline at 866-FON-CFTC or submit a tip online. Whistleblowers may be eligible for financial rewards.
Source: CFTC.gov
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