Thomasville, NC – October 27, 2011 – Rodney W. Whitney, along with Nicholas T. Cox and their firm Integra Capital Management, LLC, have been ordered to pay over $6.9 million in penalties for defrauding investors in a Ponzi scheme, the U.S. Commodity Futures Trading Commission (CFTC) announced today. The orders, entered by U.S. District Judge Thomas D. Schroeder of the Middle District of North Carolina, conclude a case brought forth by the CFTC in September 2010.
Whitney, of Thomasville, N.C., Cox, of Denton, N.C., and Integra Capital Management, LLC, formerly of High Point, N.C., were charged with fraud and misappropriation related to a commodity pool Ponzi scheme involving commodity futures and off-exchange foreign currency transactions. The scheme spanned from approximately September 2006 through August 2009.
Judge Schroeder found that the defendants misrepresented Integra’s trading performance and misappropriated funds from investors. Whitney and Integra are jointly and severally liable for $2,185,063 in restitution, $1,198,316 in disgorgement, and a $3,594,948 civil monetary penalty. Cox is required to pay $2,185,063 in restitution and a $2,185,063 civil monetary penalty. A credit will be applied to payments made by any of the parties.
The CFTC’s complaint alleged violations of the anti-fraud provisions of the Commodity Exchange Act (CEA). As a result of the orders, Whitney, Cox, and Integra are permanently prohibited from engaging in any commodity-related activity, including trading, and are barred from registering with the CFTC.
The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Middle District of North Carolina in the investigation. The case was led by CFTC staff members Susan Gradman, David Slovick, Judith McCorkle, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
Source: CFTC.gov
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