The US Commodity Futures Trading Commission (CFTC) has filed a notice of intent to revoke or restrict the registration of Raleigh Capital Management, Inc. (RCM), a Chicago, Illinois-based commodity pool operator.

The CFTC’s notice alleges that RCM is subject to disqualification from registration under the Commodity Exchange Act (CEA) based upon the entry of an order for permanent injunction by the US District Court for the Northern District of Illinois on 12 May, 2011 (see CFTC Press Release 6047-11, 1 June, 2011). The court’s order stems from a CFTC anti-fraud enforcement action filed on 28 October, 2009. The CFTC complaint charged RCM and its sole principal, Richmond Hamilton, Jr, with misappropriating more than USD1 million from the Raleigh Fund, LP, an USD8.3 million commodity pool organised by Hamilton.

The order requires RCM and Hamilton jointly and severally to pay a USD3,015,000 civil monetary penalty and prohibits RCM and Hamilton from engaging in any commodity-related activity, including trading and registering with the CFTC in any capacity, among other sanctions.