Every few days or so the SEC or CFTC brings a lawsuit against some small-time, or I guess medium-time, fraudster and today’s, a joint SEC/CFTC effort, is a representative example. It’s about Kevin G. White, his company KGW Capital, “one of the world’s leading private investment firms,” and its “$1 billion highly specialized currency hedge fund,” the Revelation Forex Fund, and they’re up to the usual sorts of no good. Per the SEC, the billion-dollar Revelation actually only raised $7.1 million, and lost some $2 million of that trading forex. Another $1.7 million was allegedly swiped by White “to, among other things, pay for personal expenses, finance other businesses, and for other undisclosed purposes unrelated to the Fund’s investment activities.” Such as:
White used the misappropriated funds for personal expenses, including a gym membership, retail purchases, meals, travel, a dog training service, vehicle maintenance, and alimony payments as well as business expenses including furniture, electronic equipment, and marketing services.