As per the court papers filed in the US District Court of the Eastern District of Texas, the market regulator claimed that White and his firms, KGW Capital Management and Revelation Forex Fund, used websites, press releases, and presentations to lure the prospective investors.
While freezing the assets of the accused unregistered money manager, the US watchdog said that White collected over $7.1m from investors by hyping a sophisticated low-risk forex trading strategy yielding exorbitant returns.
Accusing White, who spent over $1.7m investors’ money on personal expenses, SEC Fort Worth regional office director David Woodcock said, "White and his companies brandished phony credentials and a can’t-miss trading strategy to lure investors into a web of deceit."
"In reality, White was suffering forex trading losses and putting investor money to other uses," Woodcock added.
Accepting the SEC plea, the court has granted an asset freeze and temporary restraining order against White, KGW Capital, Revelation Forex, and RFF GP, which is the general partner of Revelation Forex.
Besides charging with violation of various US securities acts, the SEC is seeking recovery of ill-gotten gains with prejudgment interest and financial penalties as well as preliminary and permanent injunctions.
The US Commodity Futures Trading Commission (CFTC) has also announced parallel charges against White and his companies.
