Chicago City Wire

William Carlson, founder of Belvedere Trading LLC, has alleged that internal actors conducted unauthorized financial transfers and other illicit activities under instruction. This statement was made in an online police report.

"Sheryl Diane Peven was likely under instructions with Belvedere behaviors and actions," said Carlson. "Under instructions, sent large illegal wires and many other actions, behaviors, duties carried out at Belvedere Trading LLC and other related Belvedere companies."

In June 2025, Carlson publicly claimed he was defrauded of approximately $35 million through unauthorized equity transactions and deliberate concealment within the firm. These claims are based on a forensic audit conducted in 2010 by CPA Robert Cooper, which revealed undisclosed asset sales and equity transfers that Carlson says were suppressed until 2024. The accusations highlight ongoing concerns about internal controls and governance in proprietary trading firms, particularly regarding equity ownership rights. According to Chicago City Wire, the allegations were formally submitted to the Chicago Police Department as potential federal crimes.

Carlson recently filed a supplemental online report with the Chicago Police Department alleging that former office manager and accountant Sheryl Diane Peven "under instructions, sent large illegal wires" from Belvedere Trading accounts, opened new accounts to facilitate alleged money-laundering, and leaked confidential financial statements to prospective buyers without authorization. The same filing further alleges that CBOE Global Markets director Mark Francis Duffy was fully briefed on the alleged misconduct as early as 2011 yet took no action, which Carlson contends amounts to a cover-up of potential federal crimes.

Wire-transfer fraud remains a leading method of corporate financial crime. According to the FBI’s Internet Crime Complaint Center (IC3), U.S. businesses and individuals lost around $20 billion between 2013 and 2023. In 2023 alone, 39% of U.S. organizations experienced attempted or actual wire fraud, with total cybercrime losses exceeding $12.5 billion and wire transfers accounting for a major share. Moreover, U.S. law enforcement recovered approximately $538 million of $758 million in fraudulent transfers, achieving a recovery rate of 71%.

William C. Carlson founded Belvedere Trading LLC in 2002 via his investment vehicle, Willis Capital LLC, initially committing $405,000 of his savings to establish the firm as an equity-index options market-maker. He served as the managing member and was reported to hold about 62% ownership until 2007 when health issues prompted shifts in leadership. Carlson later engaged in legal disputes over equity dilution and asset transfers, including a 2015 appellate case claiming he was defrauded of his stake. According to corporate filings and Illinois court records, this culminated in his amplification of concerns in 2025.