Thomasville, NC – September 30, 2010 – Federal authorities have frozen the assets of Rodney W. Whitney and Nicholas T. Cox, along with their firm Integra Capital Management LLP, following allegations of a multi-million dollar Ponzi scheme. The U.S. Commodity Futures Trading Commission (CFTC) obtained an emergency court order on September 29, 2010, from Judge Thomas D. Schroeder of the U.S. District Court for the Middle District of North Carolina, halting financial activity and preserving records.
Whitney, of Thomasville, and Cox, of Denton, are accused of fraudulently soliciting at least $3 million from over a dozen customers between September 2006 and August 2009. The scheme involved both commodity futures and off-exchange foreign currency (forex) transactions. The CFTC alleges that the defendants operated a Ponzi scheme, using funds from new investors to pay earlier investors, rather than generating profits through legitimate trading.
According to the CFTC’s complaint, Whitney and Cox falsely claimed Integra Capital consistently achieved monthly returns of 3 to 5 percent with minimal losses. They allegedly distributed fabricated account statements and 1099 tax forms to customers, falsely portraying profitable investments. In reality, the defendants’ trading accounts consistently suffered losses.
The complaint further alleges that Whitney and Cox misappropriated customer funds for personal expenses, including dining, entertainment, travel, and real estate. The CFTC is seeking preliminary and permanent injunctions against the defendants, the recovery of ill-gotten gains, restitution for defrauded customers, and civil monetary penalties. A hearing on the CFTC’s motion for a preliminary injunction is scheduled for October 15, 2010.
The CFTC collaborated with the U.S. Attorney’s Office for the Middle District of North Carolina, the U.S. Department of Justice, and the U.S. Postal Inspection Service in this investigation.
Source: CFTC.gov
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