SEC Charges Steven McCraw By: Brenda Hamilton Florida Attorney
On May 30, 2014, the Securities and Exchange Commission filed charges against Steven McCraw for aiding and abetting a fraudulent forex trading scheme. The SEC alleges that McCraw knowingly or recklessly provided substantial assistance to Kevin G. White and his company, KGW Capital Management, LLC, in perpetrating a fraudulent scheme that raised approximately $7.4 million between September 2011 and July 2013.
The SEC’s complaint alleges that White and KGW Capital raised investor funds through Revelation Forex, a purportedly successful “highly specialized hedge fund” that claimed to employ a sophisticated, low-risk, high-return forex trading strategy. McCraw helped White attract potential investors to Revelation Forex by calculating alleged trading returns that were used in various marketing materials and on Revelation Forex’s website. McCraw also took the lead in creating an ostensibly “independent” website that ranked Revelation Forex as one of the best performing forex funds in the world. McCraw also met with potential investors and solicited investments for Revelation Forex.
According to the SEC, Revelation Forex’s actual trading did not generate the positive returns that were represented to investors, but instead lost more than $2 million. Moreover, White used investor funds for various personal expenses and to fund other unrelated and undisclosed investments and businesses, including a propane gas company operated by McCraw. The SEC previously halted White’s fraudulent scheme in SEC v. Kevin G. White, et al., Civil Action No. 4:13-cv-0383 (E.D. Tex. July 9, 2013).
McCraw is charged with violating or aiding and abetting violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. He has agreed to settle the SEC’s charges by consenting to injunctions against future violations of these provisions, injunctions against engaging in certain specific conduct, disgorgement of ill-gotten gains (with prejudgment interest), and civil penalties to be determined by the district court.
The forex market is a large and generally liquid financial market in which the risk of loss for individual investors can be substantial. More information about Forex trading schemes can be found here.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490, Rule 506 private placement offerings and memorandums, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration statements on Form S-1 , IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or [email protected]. Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
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www.SecuritiesLawyer101.com
