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Saturday, May 18, 2024 | Back issues
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Texan Gets Eight Years|for ForEx Fraud

BEAUMONT, Texas (CN) - A Dallas-area man was sentenced Thursday to eight years in federal prison for his role in a $7.4 million foreign currency exchange scheme.

Kevin G. White, 55, of Plano, was sentenced to 97 months and ordered to pay $3.9 million in restitution. He pleaded guilty in December 2013 to committing mail fraud in connection with a commodity trading fraud scheme.

Prosecutors said White ran the scheme through Plano-based Revelation Forex Fund, losing more than $4 million of investors' money.

"In order to lure investors to purchase partnership interests in RFF, White falsely overstated the past rate of return on investment for RFF, that RFF returns had been audited, and the length of time RFF had actually been in existence," prosecutors said in a statement. "RFF received investments totaling over $7.4 million. White admitted to using approximately $1.8 million of investor funds for non-investment purposes."

White was ordered to surrender to the Bureau of Prisons on April 6.

The Commodity Futures Trading Commission and the Securities and Exchange Commission filed separate federal lawsuits in July 2013 against White and his entities, resulting in the appointment of attorney Kelly Crawford, with Scheef & Stone in Dallas, as receiver.

Crawford projected a 42.8 percent pro rata recovery and distribution of net losses to investors, who are to be paid before creditors.

Crawford has since forced the sale of personal property, including a bronze horse sculpture, a Mercedes-Benz S-550, a Chevy Tahoe, a Rolex Yacht-Master watch and seven firearms.

The CFTC claimed White misrepresented his brokerage experience and failed to disclose he had been censured and barred by the New York Stock Exchange based on multiple customer complaints against him.

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