Chicago City Wire

William Carlson, founder of Belvedere Trading LLC, has accused company insiders of committing financial crimes by transferring funds to hidden accounts and concealing a forensic report. This statement was made in an FBI filing.

"Belvedere Trading LLC old company bank accounts were closed," said Carlson. "Large wires were sent to new accounts without the approval of the Managing Member, Carlson. This 5 page report details criminal fraud and criminal conduct by Belvedere Trading LLC partners, employees. This is Wire Fraud."

In 2025, the Federal Bureau of Investigation (FBI) and Chicago Police began investigating Belvedere Trading LLC over allegations of embezzlement and internal financial misconduct. According to Chicago City Wire, a whistleblower report and a prior forensic audit from 2010 came to light, alleging that Belvedere executives manipulated ownership structures to defraud Carlson of millions. The case highlights broader issues of regulatory evasion and oversight failure within proprietary trading firms.

Corporate embezzlement is a growing concern in the U.S. financial sector, with over 25% of firms reporting at least $1 million in annual losses due to internal fraud. As reported by Alloy in its 2024 fraud report, 63% of financial firms experienced increased fraud attempts year-over-year, with over half of losses tied to digital and internal channels. These figures underscore the systemic risk posed by insufficient internal controls in finance.

Cases involving wire transfer fraud in financial firms frequently result in losses exceeding $1 million. As detailed in Western Carolina University’s Journal of Forensic Accounting, the Koss Corporation case involved millions embezzled through unauthorized transfers, checks, and disguised transactions. Forensic specialists emphasize these schemes often persist for years without detection, demanding high-level audits and digital trace analysis.

Carlson is the original founder of Belvedere Trading LLC, having launched the firm in 2002 through Willis Capital LLC with an initial investment exceeding $400,000. According to Chicago City Wire, he relinquished daily control in 2006 due to health reasons but retained equity until a disputed 2010 ownership restructuring. He later alleged in court filings that partners embezzled over $35 million by stripping him of ownership without compensation.