June 1, 2011
Federal Court Orders Moroccan Resident Richmond Hamilton, Jr., and Chicago Commodity Pool Operator Raleigh Capital Management, Inc. to Pay More than $4 Million in Restitution and a Civil Monetary Penalty for Misappropriation and False Statements to the National Futures Association
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a federal court order requiring defendants Richmond Hamilton, Jr., who lives in Morocco, and Raleigh Capital Management, Inc. (RCM), a Chicago, Ill.-based registered commodity pool operator, to pay jointly and severally a $3,015,000 civil monetary penalty. The order also requires Hamilton to pay restitution of $1,005,000. The order prohibits Hamilton and RCM from engaging in any commodity-related activity within the jurisdiction of the CFTC, including trading and registering with the CFTC in any capacity.
The permanent injunction order, entered by the Honorable Charles R. Norgle, Sr., of the U.S. District Court for the Northern District of Illinois, resolves a CFTC complaint filed on October 28, 2009 (see CFTC Press Release 5744-09, October 30, 2009). The CFTC complaint charged Hamilton and RCM with misappropriating more than $1 million since May 2004 from the Raleigh Fund, LP, an $8.3 million commodity pool organized by Hamilton in 1987. The complaint also charged Hamilton with making false statements to the National Futures Association (NFA).
The court’s order finds that, commencing in 2004, Hamilton misappropriated $1,005,000 from the Raleigh Fund commodity pool. Hamilton then used some of those funds for personal expenses, such as payments for a car and two planes, according to the order.
The order also finds that Hamilton made false representations to the NFA when, as part of a routine audit, the NFA sought details concerning the transfers Hamilton made to himself from the pool. The order finds that Hamilton provided documents for three sham real estate deals that Hamilton claimed to have done with the pool. According to the order, Hamilton also misrepresented other facts to the NFA, including the extent of his personal bank accounts, restrictions he imposed on pool participants’ requests for redemptions and his payment of operating expenses for the fund.
The CFTC thanks the NFA for its assistance.
The CFTC Division of Enforcement staff members responsible for this case are Joseph Konizeski, William Janulis, Scott Williamson, Rosemary Hollinger and Richard Wagner.
Last Updated: June 1, 2011