Articles Tagged with Forex trading scam

The Securities and Exchange Commission and the Commodity Futures Trading Commission have filed separate yet parallel securities fraud lawsuits against a Texas money manager accused of bilking investors in a foreign-exchange trading scheme. Kevin G. White allegedly took approximately $1.7 million of the $7 million of investor funds he raised by making false claims that his currency trading strategy had brought about returns of over 393% since it was first implemented in January 2009.

The Commission filed its Texas Securities case in federal court early last month. The regulator believes that White and his companies used bogus credentials and its “can’t miss trading strategy” to reel investors into its scam when, in reality, the money manager was experiencing forex trading losses and misappropriating customer funds.

The CFTC’s action seeks to freeze White’s assets, as well of those of RFF GP LLC, Revelation Forex Fund LP, and KGW Capital Management LLC. Like the SEC, this regulator wants trading bans, financial penalties, and disgorgement of ill-gotten gains.