CFTC Wins Default Judgment Ordering Texas Man and Cambridge Financial Advisors to Pay $13 Million for Commodities Fraud

The Commodity Futures Trading Commission secured a default judgment from the U.S. District Court for the Northern District of Texas against Walter Dunning Larrick III and Cambridge Financial Advisors LLC. The court found the defendants executed a commodities fraud scheme that fraudulently solicited and misappropriated more than $3 million from participants.

Larrick and the firm falsely claimed participant funds would be used to trade futures and options tied to natural gas, oil, and gold. They made material misrepresentations and omissions regarding trading profitability and issued false account statements to hide their actions.

Fraudulent Conduct Included Ponzi-Style Payments and Personal Misuse

The court determined the defendants misappropriated funds by making payments to existing participants in a manner akin to a Ponzi scheme. They also directed money toward Larrick’s personal expenses and sent funds to offshore accounts in Costa Rica. These findings stem directly from the CFTC’s 2023 complaint, which the default judgment fully resolves.

Penalties Total More Than $13 Million With Permanent Bans

The judgment requires payment of a $9,767,625 civil monetary penalty together with $3,255,875 in restitution. It permanently enjoins Larrick and Cambridge Financial Advisors from further violations of the Commodity Exchange Act and Commission regulations. The order also imposes permanent trading and registration bans.

This outcome illustrates the Commission’s continued focus on pursuing and sanctioning deceptive conduct in futures and options markets.