Chicago, IL – October 30, 2009 – The U.S. Commodity Futures Trading Commission (CFTC) has secured an emergency court order freezing the assets of Richmond Hamilton, Jr. and his firm, Raleigh Capital Management, Inc. The order, issued by the U.S. District Court for the Northern District of Illinois, also prevents the destruction of records and appoints a receiver to locate assets and identify affected customers.
Hamilton, a resident of Morocco, and his Chicago-based company, Raleigh Capital Management, are accused of misappropriating over $1 million from the Raleigh Fund, LP, a commodity pool established by Hamilton in 1987. The CFTC complaint, filed on October 28, 2009, alleges the misappropriation occurred since May 2004. The fund itself holds $8.3 million in assets.
According to the CFTC, Hamilton and Raleigh Capital Management used funds from the Raleigh Fund to cover personal expenses, including the purchase and upkeep of an airplane and the leasing of a vehicle in the United States. Investigators also claim Hamilton orchestrated a fraudulent real estate transaction to further divert money from the fund.
The complaint further details that Hamilton made false statements to investors regarding interest payments on personal loans taken from the Raleigh Fund, concealing the fact that he had ceased making payments on the principal. He is also accused of providing false information to the National Futures Association (NFA) during an audit of the Raleigh Fund, specifically regarding his personal bank accounts and the fund’s administration.
The CFTC is seeking a permanent injunction against Hamilton and Raleigh Capital Management, as well as the recovery of illegally obtained gains and civil monetary penalties. The case is currently being overseen by U.S. District Court Judge Charles R. Norgle, Sr. The NFA provided assistance in the investigation.
Source: CFTC.gov
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