CFTC Files Lawsuit Against Agridime LLC Over Alleged $161M Ponzi Scheme

The Commodity Futures Trading Commission (CFTC) has taken legal action against Agridime LLC for allegedly orchestrating a Ponzi scheme.

On May 10, 2024, the CFTC lodged a complaint in the Texas Northern District Court against Agridime and its co-founders, Joshua Link and Jed Wood.

The complaint alleges that from 2021 to around December 11, 2023, Agridime and its co-founders perpetrated a scheme to deceive thousands of customers across at least fourteen states in the United States. The scheme involved soliciting and accepting customer funds under false pretenses, using them to pay other customers in a manner characteristic of a Ponzi scheme. These funds were purportedly meant for purchasing cattle but were not used for their intended purpose.

Throughout the period in question, the defendants reportedly received over $161 million from more than two thousand victims for the ostensible purpose of cattle procurement.

Agridime operated an online platform during this time, offering customers the opportunity to engage in cattle trading with promised annual returns of 15% to 20%. The company assured customers that they could profit from cattle raising without the associated day-to-day responsibilities.

Under Agridime's cattle program, customers were led to believe that their investment would be used for purchasing and caring for the cattle until they were ready for processing and sale. However, it is alleged that Agridime failed to fulfill its obligations under the cattle purchase agreements, necessitating the use of new customers' funds to pay returns to earlier investors.

Additionally, it is claimed that approximately $11 million in undisclosed commissions, including payments to Agridime personnel, were extracted from customers' funds.

The CFTC accuses the defendants of violating anti-fraud provisions of the Commodity Exchange Act and CFTC Regulations. Specifically, they are charged with breaching Section 6(c)(1) of the CEA and Regulation 180.1(a)(1)-(3).

The CFTC aims to halt the defendants' unlawful activities, ensure compliance with regulatory standards, and prevent them from engaging in any commodity-related activities. Furthermore, the CFTC seeks civil monetary penalties for each violation, as well as remedial measures such as trading and registration bans, restitution, disgorgement, rescission, and pre-and post-judgment interest.