WASHINGTON - The Commodity Futures Trading Commission today announced the U.S. District Court for the Northern District of Texas entered a default judgment against defendants Walter Dunning Larrick III and Cambridge Financial Advisors LLC for their participation in a commodities fraud scheme.

In entering the default judgment, the court found the defendants fraudulently solicited and misappropriated more than $3 million from participants.

The court found the defendants falsely represented they would use participant funds to trade futures and options, including those involving natural gas, oil, and gold; made material misrepresentations and omissions about the profitability of commodity trading with them; and issued false account statements to conceal their misconduct.

The court further found the defendants misappropriated participant funds by making payments to existing participants in a manner akin to a Ponzi scheme, paying Larrick's personal expenses, and sending funds to offshore accounts in Costa Rica.

The court ordered the defendants to pay a $9,767,625 civil monetary penalty and $3,255,875 in restitution. It also permanently enjoined them from further violations of the Commodity Exchange Act and Commission regulations, as charged, and imposed permanent trading and registration bans.

The default judgment resolves all claims in the CFTC's 2023 complaint. [See CFTC Press Release No. 8768-23.]