By George Miller  of Shustak Reynolds & Partners, P.C. posted on Monday, July 15, 2013.

The Securities and Exchange Commission has filed a formal complaint against Kevin G. White of Plano, Texas, and two entities through which the SEC alleges he operated a significant Foreign Exchange (Forex) trading scheme, KGW Capital Management, LLC and Revelation Forex Fund, L.P. According to the SEC’s complaint, White solicited and raised in excess of $7.1 million from more than 20 investors in the United States through a series of false and misleading representations.

According to the SEC, to convince investors to invest in his fund, White promised compound annual returns in excess of 36% and claimed the fund had achieved total returns of more than 393% since January 2009. Thus, according to White’s marketing materials, an initial investment of $250,000 in January 2009 would have grown to more than $960,000 by April 2013.

Despite these promises of large gains, in reality the SEC alleges the fund incurred trading losses of $550,000, plus unrealized losses of more than $1.4 million, since it began Forex trading in 2011. The SEC also claims White lied about his education and prior “Wall Street” experience and used more than $1.7 million of investor money to pay for his own personal expenses and expensive trips. White is not registered with the SEC, the U.S. Commodity Futures Trading Commission, the Financial Industry Regulatory Authority or any state securities regulator according to the SEC.

Shustak Reynolds & Partners, P.C. handles a wide range of securities and FINRA related issues and has substantial expertise and experience in the securities and brokerage business. If you believe you have been the victim of fraudulent or negligent misrepresentations in connection with the sale of securities, please contact our firm’s managing partner, Erwin Shustak, at 619.696.9500 or [email protected].

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