The Commodity Futures Trading Commission (CFTC) has finalized a $64.3 million settlement with EmpiresX, a company accused of operating a fraudulent commodities scheme. The agreement resolves charges of fraud, failure to register as a commodity pool operator, and commingling customer funds.

Empires Consulting, the entity currently under receivership and operating as EmpiresX, consented to a permanent injunction barring future commodities fraud. The settlement includes a $32.1 million civil monetary penalty and an equal amount designated for restitution to defrauded investors. This marks a significant financial penalty for the firm's alleged misconduct.

The CFTC’s complaint detailed several violations by Empires Consulting and its principals, Emerson Pires, Flavio Goncalves, and Joshua Nicholas. Charges included operating an unregistered commodity pool, engaging in fraud and deceit, and improperly mixing investor assets. These actions formed the basis of the regulatory body's enforcement action.

This CFTC settlement follows a similar resolution with the Securities and Exchange Commission (SEC) in May of the previous year. In that case, EmpiresX also settled parallel securities fraud charges for $32.1 million. The coordinated actions by both agencies underscore the breadth of the alleged financial misconduct.

Individual defendants face varying legal outcomes. Emerson Pires and Flavio Goncalves remain fugitives following their indictments in 2022. A default judgment of $45.8 million was entered against them in June 2023, reflecting their failure to appear or contest the charges.

Joshua Nicholas, however, has entered into settlement negotiations and pleaded guilty to related charges. He was sentenced to 51 months in prison in November 2022. Nicholas also faced a $300,026 judgment in the SEC’s proceedings. His attempt to negotiate a settlement with the CFTC experienced a peculiar delay; he claimed a prison guard destroyed the return postage for settlement documents. The court granted Nicholas a temporary stay to resume negotiations, with a status report due by June 5th.

The court officially approved the CFTC’s settlement with Empires Consulting on March 15th. More recently, on February 6th, 2025, the CFTC secured an additional $129 million judgment against Pires, Goncalves, and Nicholas. This further judgment indicates a continued effort by the commission to recover funds and hold responsible parties accountable.