Release Number 7383-16
June 3, 2016
Federal Court Orders Florida Resident Rico Omar Cox to Pay Over $940,000 and Imposes Permanent Trading and Registration Bans for Solicitation Fraud and False Statements in Commodity Futures Fraud Action brought by CFTC
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge William J. Zloch of the U.S. District Court for the Southern District of Florida (Fort Lauderdale) entered an Order of Default Final Judgment (Order) against Defendant Rico Omar Cox (a.k.a. Omar Negron) (Cox) of Dania Beach, Florida, requiring restitution of $381,000 and imposing a $560,000 civil monetary penalty for defrauding his clients in connection with commodity futures trading.
The Order also requires disgorgement of $5,800 of ill-gotten gains obtained by Cox in the form of fraudulent performance fees, permanently enjoins Cox from further violations of the Commodity Exchange Act as charged, and imposes permanent trading and registration bans on him. Cox has never been registered with the CFTC in any capacity.
The Order arises out of the CFTC enforcement Complaint filed on February 4, 2016 (see CFTC Complaint and Press Release 7320-16). The Order finds that, beginning in at least August 2010 through March 2015, Cox fraudulently solicited at least $499,000 from at least nine clients for his trading services for managed commodity futures accounts. Excluding client withdrawals, Cox lost virtually all of the funds trading the accounts using the clients’ login credentials.
The Order also finds that Cox distributed false daily account statements and/or screen shots showing profits to conceal his losses, and that he failed to disclose to his clients that he had 2013 felony convictions in Florida for fraud, grand theft, and acting as an unlicensed mortgage broker. Cox also failed to register with the CFTC as a CTA as he was required to do.
The CFTC cautions victims that restitution orders may not result in the recovery of money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.
CFTC Division of Enforcement staff members responsible for this case are Barry Blankfield, David Terrell, Joe Patrick, Scott Williamson, and Rosemary Hollinger.
* * * * *
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.
Last Updated: June 3, 2016