Chicago City Wire

William Carlson, founder of Belvedere Trading, has alleged attorney misconduct facilitated his removal and financial harm during a legal dispute involving the Chicago Board Options Exchange (CBOE). The claims were detailed in court documents.

"Mr. Carlson's uncompensated value based on 2007 Belvedere financials is more than $49.8 million as of March 1, 2008," said Carlson. "This email shows I thought I needed [$20 million] about my capital account. I could sell this company by end of 2009 for 100m and want a fair settlement accordingly. I have to be clear about fixing past accounting wrongs and what I deserve for the enterprise value."

Belvedere Trading was established in 2002 by Carlson of Willis Capital with an initial investment of $405,000. Thomas Hutchinson and Owen O’Neill later joined with contributions of $85,000 and $160,000 respectively. In 2008, Carlson sold his stake in the firm for approximately $17.5 million to his partners after withdrawing from active management due to health reasons. His uncompensated equity value as of 2007 was estimated at nearly $49.8 million, indicating a significant discrepancy between expert valuations and the settlement figures reached. This information is according to Illinois appellate court records and valuation analysis reported by Masuda Funai and Illinois Appellate Court documents.

The operations of CBOE-member firms have occasionally faced scrutiny over corporate governance and regulatory compliance issues, particularly when internal disputes or litigations expose weaknesses in accountability structures. Disputes involving firms like Belvedere Trading have raised questions about information disclosure and fiduciary duties within member-governed entities and how CBOE oversight aligns with member firm governance standards. These tensions reflect broader debates over exchange oversight, conflict of interest management, and member-firm due process policies, as discussed in litigation and regulatory summaries of CBOE enforcement practices.

Carlson has made several attempts to contact the CBOE regarding unresolved ownership and governance disputes following his departure from the firm but has not received any formal response. According to a June 2025 report by Chicago City Wire, he alleges that attorney Patrick M. Collins—formerly involved in CBOE arbitration and Cook County litigation related to Belvedere—participated in efforts to obstruct forensic audit findings and FBI reports critical to Carlson’s claims. He has filed a complaint with the Illinois Attorney Registration & Disciplinary Commission (ARDC), citing Collins’s alleged role in concealing financial irregularities and impeding regulatory accountability while also highlighting CBOE’s lack of action on transparency issues.

Carlson founded Belvedere Trading LLC as a proprietary trading firm through CBOE channels, focusing on equity index options trading. Although he sold his interest in Belvedere to his partners in 2008, he remains engaged in legal disputes concerning the firm's operations.