CFTC Wins Consent Orders Against Centurion Capital Rep and Algo Capital Sales Agent

The Commodity Futures Trading Commission (CFTC) announced that the U.S. District Court for the Southern District of Florida has entered consent orders against Steven Likos and Archie Rice for retail fraud, fraud as associated persons of a commodity pool operator, and related regulatory violations.

According to the order concerning Likos, while acting as a sales agent for Algo Capital LLC, he misappropriated customer funds and made misrepresentations and omissions to customers and prospective customers. Likos falsely assured customers they could withdraw their funds, even though he knew or should have known that some, if not all, withdrawal requests were not being honored during the fall of 2022, and he misled customers about the firm's claimed use of a proprietary trading algorithm. In reality, Algo Capital had arranged for Traders Domain FX Ltd. to trade customer funds beginning no later than October 2021. Likos also ignored red flags that Traders Domain was engaged in fraudulent activity and not trading customer funds as claimed.

A separate order found that Rice, while soliciting customers for Centurion Capital Group Inc., misappropriated customer funds and made misrepresentations and omissions. Rice falsely touted Centurion's historical profits and made false statements about customers' ability to withdraw funds, even as he privately expressed concerns that customers would never be able to withdraw. He also ignored red flags that Traders Domain was engaged in fraud and not trading customer funds as claimed.

The court ordered Likos to pay $320,041.38 in disgorgement and Rice to pay $227,220 in civil monetary penalties. Both were permanently enjoined from further violations of the Commodity Exchange Act and Commission regulations, and permanent trading and registration bans were imposed.

The consent orders resolve all claims against Likos and Rice in the CFTC's enforcement action filed September 30, 2024. The action against the remaining defendants continues.

The CFTC cautioned that disgorgement orders may not result in victims recovering any money lost because defendants may not have sufficient funds or assets.