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The US District Court for the Southern District of Florida has entered consent orders against Steven Likos and Archie Rice after finding the two defendants liable for retail fraud, misappropriation of customer funds and related regulatory violations, according to a CFTC press release issued on Wednesday.
Likos, a sales agent for Algo Capital LLC, misrepresented the firm’s trading activities and customers’ ability to withdraw their funds. The CFTC said he falsely assured customers that withdrawals could be made despite knowing or having reason to know that some requests were not being honored during fall 2022.
Algo Capital had arranged for Traders Domain FX Ltd. to trade customer funds beginning no later than October 2021, but Likos allegedly disregarded red flags showing that Traders Domain was fraudulent and was not actually trading customer funds as represented. The CFTC filed its enforcement case in September 2024.
Rice faced similar allegations while soliciting customers for Centurion Capital Group Inc. The CFTC said he misappropriated customer funds, touted false historical profits and made misleading statements about withdrawals.
Rice also privately expressed doubts about customers’ ability to recover their funds while continuing to make representations to customers, and allegedly ignored warning signs concerning Traders Domain.
The court ordered Likos to pay $320,041 in disgorgement and Rice to pay $227,220 in civil monetary penalties. Both men were permanently barred from trading and registration and subject to permanent injunctions against future violations of the Commodity Exchange Act and related regulations.
The orders resolve the CFTC’s claims against Likos and Rice, while the agency’s action against the other defendants remains ongoing.
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