Former CBOT Floor Trader James Brandolino Gets Nearly 9 Years for Commodity Pool Ponzi

Case from 2013 (U.S. Attorney's Office release: May 6, 2013). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

James Brandolino, a commodities broker who once had floor trading privileges at the Chicago Board of Trade, was sentenced on May 2, 2013, to 107 months in federal prison. He had run a seven-year scheme that took $3.75 million from more than 50 investors, the U.S. Attorney's Office for the Northern District of Illinois announced [1].

How the scheme worked

According to prosecutors [1]:

1. Friends and family: From 2003 to January 2011, Brandolino raised about $4.8 million from about 60 investors, many of them family and friends. He promised healthy returns and safety of principal.
2. Fake statements: He sent fabricated account statements showing steady gains, which persuaded investors to stay in and add more.
3. Where the money went: He lost about $850,000 on unsuccessful futures trades and used about $1.4 million to pay existing investors, more than $300,000 of it beyond what they had put in. He took more than $2 million for himself and bought items such as a luxury BMW, a Rolex watch and a piano.
4. The companies: He held National Futures Association registrations and was a principal of Brandolino Investment Group, Lloyd Lewis Capital Inc., Falcon Trading Group Inc. and Falcon Capital Partners LLC.

The sentence

James Brandolino, 44, formerly of Joliet and Chicago

• Plea: guilty to mail fraud in August 2011.
• Sentence: 107 months in prison and $3,865,484 in restitution, imposed by U.S. District Judge Elaine Bucklo. He also agreed to pay $128,576 in additional restitution to managed-account holders who suffered trading losses.
• Custody: He had been in custody since January 2011, when he turned himself in as the scheme collapsed [1].

The FBI and the U.S. Postal Inspection Service investigated, with help from the Commodity Futures Trading Commission.

Red flags

• Steady gains in a volatile market such as futures trading.
• Statements produced by the trader rather than by an independent futures commission merchant or custodian.
• Pools sold mainly to friends and family on personal trust.

Protect yourself

1. Check registration and disciplinary history on the NFA's BASIC system at nfa.futures.org.
2. Insist that funds sit with an independent clearing firm that sends statements straight to you.
3. Report commodity fraud to the CFTC at cftc.gov/complaint.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
James Brandolino	N.D. Ill. (Judge Bucklo)	Pleaded guilty Aug. 2011 to mail fraud; sentenced May 2, 2013, to 107 months and $3,865,484 restitution	[1]

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Four Defendants Sentenced To Prison Terms Between Five And 10 Years In Three Investment Fraud Schemes," May 6, 2013. https://www.justice.gov/usao-ndil/pr/four-defendants-sentenced-prison-terms-between-five-and-10-years-three-investment-fraud

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