Chicago City Wire

William Carlson, founder of Belvedere Trading, has called for a comprehensive investigation by Cboe Global Markets following the resurfacing of a concealed 2010 forensic report that details alleged criminal conduct. Carlson made this statement in a letter.

"The 2010 'Robert Cooper CPA Forensic Report' on Belvedere Trading LLC details criminal conduct and criminal fraud (not just misrepresentations," said Carlson. "This 2010 report was concealed. This report surfaced recently in late 2024. I'm requesting CBOE Global Markets Inc do a full and transparent investigation into this entire Belvedere Trading LLC ongoing matter."

According to Chicago City Wire, Carlson filed a complaint with the Illinois Attorney Registration and Disciplinary Commission against Mark Francis Duffy, a former director at Cboe Global Markets. Carlson alleges that Duffy, while serving as legal counsel in 2011, failed to act on evidence of unauthorized seven-figure wire transfers at Belvedere between 2006 and 2008. The complaint suggests that Duffy's inaction contributed to ongoing misconduct within the firm. Carlson also claims that Duffy was compensated to suppress the investigation, raising concerns about oversight at Cboe Global Markets.

Belvedere Trading LLC has faced regulatory scrutiny over the years. In 2019, the Commodity Futures Trading Commission fined the firm $1.1 million for engaging in spoofing in the E-mini S&P 500 futures market. Additionally, according to the Financial Industry Regulatory Authority BrokerCheck report, Belvedere has 29 regulatory events on record. These figures highlight the firm's history of regulatory challenges.

Carlson founded Belvedere Trading LLC in 2002 through his entity Willis Capital LLC with an initial investment of $405,000. Court documents from the Illinois Appellate Court indicate that Carlson owned approximately 62% of Belvedere and served as its managing member. In 2007, due to medical issues, he stepped back from day-to-day operations, leading to disputes over company control and financial practices.

Cboe Global Markets Inc., originally founded as the Chicago Board Options Exchange in 1973, is a leading provider of market infrastructure and tradable products. The company operates multiple exchanges and offers trading solutions across various asset classes including equities, options, futures, and foreign exchange. Cboe's mission is to build a trusted, inclusive global marketplace that enables participants to pursue a sustainable financial future.