DANIA BEACH, FL – Rico Omar Cox, 29, is facing civil charges of fraud after the U.S. Commodity Futures Trading Commission (CFTC) filed an enforcement action against him in the U.S. District Court for the Southern District of Florida on February 5, 2016. The CFTC alleges Cox fraudulently solicited trading services for managed commodity futures accounts between August 2010 and March 2015, losing approximately $381,000 of the $499,000 he traded on behalf of at least nine clients.
According to the CFTC complaint, Cox intentionally or recklessly distributed promotional materials containing false and misleading statements regarding his trading experience and success. He allegedly claimed to be a full-time futures trader for years, generating daily returns of 10 to 40 percent. These claims were supported by fabricated trading account statements designed to overstate his profitability, the CFTC asserts.
The complaint further details that Cox provided false account statements to clients to conceal substantial trading losses. While clients withdrew around $117,000, Cox reportedly lost the vast majority of the remaining funds – no less than $381,000 – while trading using his clients’ login credentials.
Adding to the allegations, Cox allegedly failed to disclose prior felony convictions for fraud, grand theft, and acting as an unlicensed mortgage broker, all occurring in 2013. He also reportedly failed to register with the CFTC as a Commodity Trading Advisor, as legally required.
The CFTC is seeking a permanent injunction against Cox to prevent future violations of federal commodities laws. They are also pursuing a permanent ban on trading and registration, the disgorgement of any ill-gotten gains, and the imposition of civil monetary penalties. The case is being handled by CFTC staff members David Terrell, Barry Blankfield, Joe Patrick, Scott Williamson, and Rosemary Hollinger.
Customers who suspect fraud are encouraged to report suspicious activity to the CFTC via the toll-free hotline at 866-FON-CFTC (866-366-2382) or file a tip online.
Source: CFTC.gov
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