Federal Court orders Texas company to compensate defrauded customers with over $100 million for cattle scam

A Texas firm, Agridime LLC, has been ordered by the U.S. District Court for the Northern District of Texas to pay over $100 million in restitution to customers who were victims of a cattle fraud scheme. The court has also imposed a permanent injunction and equitable remedies against Agridime, prohibiting the firm from engaging in activities that violate the Commodity Exchange Act and CFTC regulations. Additionally, Agridime is banned from registering with the CFTC and from trading in any CFTC-regulated markets.

Furthermore, the court has ordered the co-founders of Agridime, Joshua Link and Jed Wood, to disgorge over $2.2 million in unlawful gains. This amount represents the gains received by Link and Wood in connection with the violations alleged in the CFTC’s complaint. The court’s default judgment also prohibits Link and Wood from further violating the CEA and CFTC regulations, imposing trading and registration bans on them.

The case against Agridime, Link, and Wood was initiated in May 2024 when the CFTC filed a complaint alleging that the defendants were involved in a fraudulent scheme. The complaint stated that Agridime solicited customer funds under false pretenses, using them in a Ponzi scheme instead of for the intended purpose of purchasing cattle. The firm failed to fulfill its obligations under livestock contracts, resulting in the use of new customers’ funds to pay profits to earlier customers. Additionally, millions of dollars were used to pay undisclosed commissions to Agridime personnel, including Link and Wood.

The Division of Enforcement acknowledges the assistance of the Fort Worth Regional Office of the Securities and Exchange Commission and the Arizona Corporation Commission’s Securities Division in this matter. The enforcement staff responsible for this case includes various individuals, such as Janine Gargiulo, Nicole Buseman, Judith M. Slowly, Trevor Kokal, Lenel Hickson, Jr., Manal M. Sultan, Charles D. Marvine, and former employee David W. MacGregor.

The CFTC has issued advisories regarding customer protection, warning individuals about prevalent frauds in forex, precious metals, and romance scams. The public is strongly advised to verify a company’s registration with the CFTC before investing funds. Customers can report suspicious activities or violations of commodity trading laws to the Division of Enforcement through a toll-free hotline or online complaint submission. Whistleblowers may receive rewards ranging from 10 to 30 percent of the sanctions collected from violators of the CEA.