The Commodity Futures Trading Commission (CFTC) announced that the U.S. District Court for the Northern District of Texas entered a default judgment against Walter Dunning Larrick III and Cambridge Financial Advisors LLC for commodities fraud. The defendants must pay a USD 9,767,625 civil monetary penalty and USD 3,255,875 in restitution, with joint and several liability for both amounts. The judgment also imposes permanent trading and registration bans and prohibits further violations of the Commodity Exchange Act and CFTC regulations. The court found that the defendants fraudulently solicited and misappropriated more than USD 3 million from participants, falsely representing that the money would fund futures and options trading, including in natural gas, oil and gold. They misrepresented trading profitability and issued false account statements to conceal their misconduct. Participant funds instead went toward payments to existing participants in a manner akin to a Ponzi scheme, Larrick’s personal expenses and transfers to offshore accounts in Costa Rica. The judgment resolves all claims in the CFTC’s 2023 complaint.
CFTC secures court order for over USD 13 million and permanent bans in commodities fraud case
The Commodity Futures Trading Commission secured a default judgment ordering Walter Dunning Larrick III and Cambridge Financial Advisors LLC to pay over USD 13 million in penalties and restitution. The court found they fraudulently solicited and misappropriated more than USD 3 million intended for futures and options trading. Permanent trading and registration bans accompany the judgment, which resolves the regulator’s 2023 case.