The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action in the U.S. District Court for the Northern District of Texas against Agridime LLC, a Texas corporation, and its co-founders, Joshua Link of Gilbert, Arizona and Jed Wood of Ft. Worth, Texas. The defendants are accused of defrauding thousands of customers across at least 14 states by soliciting, accepting, and using customer funds to pay undisclosed commissions and using later customers' funds to pay profits to earlier customers.
Agridime is alleged to have misrepresented that these funds would be used in connection with contracts of sale of a commodity in interstate commerce, specifically the customer’s purchase of cattle. From approximately 2021 until December 2023, the defendants reportedly received more than $161 million from over 2,000 customers.
In its ongoing litigation against the defendants, the CFTC seeks restitution for defrauded customers, civil monetary penalties, trading bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
Agridime operated an online platform that purportedly allowed customers to buy and sell cattle while promising guaranteed annual rates of return between at least 15% and 20%. The company's cattle purchase program was advertised as an opportunity for customers to buy and sell cattle without having to care for them on a daily basis.
According to allegations in the complaint, Agridime did not purchase enough cattle to fulfill its obligations under livestock contracts. As a result, it had to use recent customers’ funds to pay the guaranteed profits of earlier customers. It is also alleged that around $11 million in undisclosed commissions were paid out to Agridime personnel including Link, his wife, and Wood.
The Division of Enforcement (DOE) expressed gratitude towards the Arizona Corporation Commission Securities Division and the Securities and Exchange Commission for their assistance in this matter. The DOE staff responsible for this case include Janine Gargiulo, Nicole Buseman, Judith M. Slowly, Trevor Kokal, David W. MacGregor, Lenel Hickson, Jr., and Manal M. Sultan.
The CFTC has issued several customer protection advisories and articles about prevalent frauds and urges the public to verify a company’s registration with the CFTC before committing funds. If unregistered, customers should be wary of providing funds to that entity. Customers can report suspicious activities or possible violations of commodity trading laws to the Division of Enforcement via a toll-free hotline or online.
