CFTC Secures Consent Orders Against Likos and Rice for Commodity Pool Fraud and Misappropriation
TL;DR — CFTC obtained consent orders against Steven Likos and Archie Rice for commodity pool fraud, misappropriation, and misrepresentations involving Algo Capital and Centurion Capital. Likos must pay $320,041.38 in disgorgement; Rice pays $227,220 in penalties. Both receive permanent trading bans in the 2024 enforcement action.
SCCG Take — This enforcement underscores the CFTC’s priority on individual accountability for ignored red flags in customer fund handling, with direct consequences for compliance practices in regulated trading entities.
The Commodity Futures Trading Commission has secured consent orders from the U.S. District Court for the Southern District of Florida against Steven Likos and Archie Rice. The orders direct Likos to pay $320,041.38 in disgorgement and Rice to pay $227,220 in civil monetary penalties while imposing permanent trading and registration bans.
The orders resolve all claims against Likos and Rice in the CFTC’s enforcement action filed September 30, 2024. The enforcement action against the remaining defendants continues.
Likos Misappropriated Funds While Acting for Algo Capital
While acting as sales agent of Algo Capital LLC, Likos misappropriated customer funds and made numerous misrepresentations and omissions to customers and prospective customers. He falsely assured customers they could withdraw their funds, even though he knew or should have known that some, if not all, customer withdrawal requests were not being honored during the fall of 2022. Likos also 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 ignored several red flags that Traders Domain was engaged in fraudulent activity and not trading customer funds as claimed. The court ordered Likos to pay $320,041.38 in disgorgement.
Rice Made False Claims While Soliciting for Centurion Capital
Rice, while soliciting customers and prospective customers for Centurion Capital Group Inc., misappropriated customer funds and made numerous misrepresentations and omissions. He falsely touted Centurion‘s historical profits and made false statements about customers’ ability to withdraw their funds, even as he privately expressed concerns that customers would never be able to withdraw their funds. Rice ignored numerous red flags that Traders Domain was engaged in fraud and not trading customer funds as claimed.
The court ordered Rice to pay $227,220 in civil monetary penalties. Both Likos and Rice are permanently enjoined from further violations of the Commodity Exchange Act and Commission regulations, as charged. The CFTC cautions that disgorgement orders may not result in victims recovering any money lost because defendants may not have sufficient funds or assets.
Reporting: CFTC Enforcement Actions
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Willful blindness costs you everything — the CFTC is holding salespeople personally liable when the red flags were everywhere.
We've seen this pattern dozens of times: sales agents close their eyes while the back office burns customer cash. The CFTC just made it crystal clear that 'I didn't know' won't save you when withdrawal requests pile up and the algorithm story doesn't add up. Compliance isn't a back-office function anymore — it's existential for everyone touching customer money.
- Likos and Rice both ignored red flags that Traders Domain was fraudulent, not trading funds
- $320K disgorgement and $227K penalties, plus permanent trading bans for both
- CFTC enforcement filed Sept 2024; case against other defendants ongoing
SCCG angle: SCCG works with dozens of compliance providers and forensic auditors across derivatives and payments. When you're evaluating third-party trading partners or building customer fund safeguards, we connect you to the specialists who can stress-test your controls before the CFTC does. We've been in these rooms — prevention is cheaper than disgorgement.
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