February 5, 2016

CFTC Charges Dania Beach, Florida Resident Rico Omar Cox with Commodity Trading Advisor Fraud

Cox allegedly used websites such as Craigslist to fraudulently solicit approximately $500,000 from investors

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed a civil injunctive anti-fraud enforcement action in the U.S. District Court for the Southern District of Florida against 29-year-old Rico Omar Cox (aka Omar Negron) of Dania Beach, Florida. The CFTC Complaint charges that, beginning in at least August 2010 through March 2015, Cox fraudulently solicited his trading services for managed commodity futures accounts, and lost most of the $499,000 he traded for or on behalf of at least nine clients.

The Complaint charges that Cox created and distributed promotional materials to prospective clients that intentionally or recklessly contained materially false and misleading statements and failed to disclose material facts, including making false claims about his experience and success as a trader. After losing almost all of the investors’ funds trading, he provided some investors with false account statements to hide the losses, the Complaint also charges.

Specifically, Cox allegedly fraudulently solicited prospective customers on websites such as Craigslist and falsely claimed that he had been a successful full-time futures trader for years and made thousands of dollars and/or returns of 10 percent to 40 percent daily. As alleged, Cox also provided fraudulent trading account statements as part of a false track record that materially overstated his trading profitability and success. Cox allegedly created and distributed to customers false daily account statements and/or screen shots that showed trading profits and account cash balances, when in reality, excluding client withdrawals of approximately $117,000, Cox lost no less than $381,000 – virtually all of the remaining funds – trading those accounts using his clients’ login credentials.

Cox allegedly failed to disclose that he had felony convictions in 2013

In addition, Cox failed to disclose that he had felony convictions in 2013 for fraud, grand theft, and acting as an unlicensed mortgage broker, and he failed to register with the CFTC as a Commodity Trading Advisor, as required, according to the Complaint.

In its continuing litigation, the CFTC seeks a permanent injunction from future violations of federal commodities laws, permanent registration and trading bans, disgorgement of ill-gotten gains, and civil monetary penalties.

CFTC Division of Enforcement staff members responsible for this case are David Terrell, Barry Blankfield, Joe Patrick, Scott Williamson, and Rosemary Hollinger.

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CFTC’s Fraud Advisories

The CFTC has issued several customer protection Fraud Advisories, which provide the warning signs of fraud and help customers identify potential fraud.

Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online. 

Media Contact
Dennis Holden
202-418-5088

Last Updated: February 5, 2016