Chicago City Wire

Andrew Boutros, an attorney for the U.S. Department of Justice (DOJ), emphasized the accountability faced by legal professionals who fail in their fiduciary responsibilities or betray client trust in financial cases. This statement was made during a public announcement.

"Attorneys who violate the trust of their clients and breach the fiduciary duty that is paramount to the practice of law will be held accountable," said S. Boutros.

According to Chicago City Wire, Belvedere Trading LLC has encountered significant legal challenges, including allegations of improper wiring of company funds to newly opened accounts. These issues have sparked ownership disputes and claims of financial misconduct. Attorney Patrick M. Collins was involved in related 2008 Cook County litigation and Chicago Board Options Exchange (CBOE) arbitration over access to financial records and asset valuation, leading to prolonged legal battles.

William Carlson, founder of Belvedere Trading, alleges that U.S. Attorney Patrick M. Collins was involved in obstructing FBI reports and concealing a forensic audit regarding financial misconduct at the firm. This includes unauthorized transfers of company funds and exclusion of Carlson from major financial decisions. Carlson's complaint with the Attorney Registration & Disciplinary Commission (ARDC) further claims that Collins's actions prolonged unresolved legal disputes over the company's ownership and governance.

A Securities and Exchange Commission administrative order references the 2010 Robert Cooper CPA Forensic Report, which highlighted inadequate financial controls at Belvedere Trading LLC. The report documented unusual journal entries, improper accounting classifications, and a lack of supporting documentation for some proprietary trading transactions, raising regulatory concerns about transparency.

Boutros is an experienced federal prosecutor who served as an Assistant U.S. Attorney in the Northern District of Illinois. He handled complex financial misconduct cases before becoming interim U.S. Attorney and also teaches law at the University of Chicago.

Belvedere Trading LLC, founded in 2002 in Chicago, is a proprietary trading firm known for its involvement in complex derivatives markets. However, it has faced scrutiny and legal disputes over its internal governance and accounting practices, including multiple lawsuits and regulatory investigations related to ownership, financial transparency, and compliance with market rules.