CFTC Sues Agridime for Ponzi Scheme

The Commodity Futures Trading Commission has filed a civil enforcement action against Agridime. The Texas-based company allegedly operated a Ponzi scheme that cheated thousands of people in at least 14 states. From 2021-to-2023, Agridime operated an online platform to buy and sell cattle that offered a guaranteed annual rate of return of 15-to-20 percent. The complaint says Agridime did not buy the number of cattle to fulfill its contracts, but used the client’s money to pay profits to other customers. Earlier this year, it was reported Agridime owed customers over $190 million, including $40 million to North Dakota investors. The CFTC is seeking restitution, civil penalties and a permanent injunction against Agridime officials.