The CFTC has announced its intent to revoke the registration of Raleigh Capital Management (“RCM”), a Chicago-based Commodity Pool Operator (“CPO”). The firm has been disqualified from registration under the Commodity Exchange Act based on an enforcement action resolved earlier this year.
In May 2011, a judge for the U.S. District Court for the Northern District of Illinois placed a permanent injunction against RCM. This court order emerged from an anti-fraud action filed against the CPO in October 2009. The CFTC alleged, and the order found, that the firm and its principal misappropriated over $1 million from a commodity pool run by the defendants. The principal, Richmond Hamilton, Jr., used the money for personal expenses, including payments on two planes. When the NFA arrived to perform a routine audit, Hamilton produced fake documents, and lied about his personal bank accounts and the CPO’s operating expenses.
That order required the defendants to pay over $4 million in civil monetary penalty and restitution, and permanently barred Hamilton and RCM from any commodities related activities. The current notice of intent to revoke registration stems from this order.