CHICAGO, IL – Richmond Hamilton, Jr. has been ordered to pay $3,015,000 in penalties and $1,005,000 in restitution following a federal court order issued on June 1, 2011. The U.S. Commodity Futures Trading Commission (CFTC) brought the case against Hamilton and his firm, Raleigh Capital Management, Inc. (RCM), alleging fraud related to a commodity pool.
The order, entered by Judge Charles R. Norgle, Sr. of the U.S. District Court for the Northern District of Illinois, resolves a complaint originally filed in October 2009. The CFTC accused Hamilton and RCM of misappropriating over $1 million from the Raleigh Fund, LP, an $8.3 million commodity pool established in 1987.
According to the court findings, beginning in 2004, Hamilton diverted $1,005,000 from the Raleigh Fund for personal use. These expenditures included the purchase of a car and two airplanes. Hamilton also allegedly made false statements to the National Futures Association (NFA) during a routine audit.
Specifically, Hamilton provided falsified documents related to three purported real estate deals to the NFA, claiming the transactions were conducted with pool funds. He further misrepresented details regarding his personal bank accounts, restrictions placed on participant redemptions, and the fund’s operating expenses.
The court’s order permanently prohibits both Hamilton and RCM from engaging in any commodity-related activities, including trading and registration with the CFTC. The CFTC acknowledged the assistance of the NFA in the investigation.
Joseph Konizeski, William Janulis, Scott Williamson, Rosemary Hollinger, and Richard Wagner of the CFTC’s Division of Enforcement were responsible for the case.
Source: CFTC.gov
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