SEC v. Kevin G. White et al., Case No. 4:13-cv-00383 RAS (E.D. Tex.). On July 12, 2013, the SEC announced it obtained an emergency court order to freeze the assets of Kevin G. White and his companies. The Commodity Futures Trading Commission announced parallel charges. The SEC alleges that White raised investor money through two entities that he owns and controls: KGW Capital Management and Revelation Forex Fund. According to the SEC, White and his companies publicly solicited investment money through websites, press releases, and presentations to prospective investors. Allegedly, they told investors that Revelation Forex was a $1 billion hedge fund that achieved astronomical returns. According to the SEC, the defendants claimed an investment of $250,000 in Revelation Forex in January 2009 would have grown to $983,111 by May 2013. According to the SEC, the statements to prospective investors were not true. Revelation Forex did not actually receive investor funds or begin forex trading until the Fall of 2011. In addition, the fund had losses in excess of $1 million. The SEC also alleges that White took almost $2 million for himself and his businesses. In addition to the asset freeze, the Court also appointed a receiver over the businesses. The SEC charged White, KGW Capital, Revelation Forex, and RFF with violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5. The SEC seeks disgorgement, civil monetary penalties, and preliminary and permanent injunctions.
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