Washington, D.C. – Brian Hinman has been penalized by the U.S. Commodity Futures Trading Commission (CFTC) for his role in a fraudulent foreign currency exchange scheme. The CFTC filed and settled charges against Hinman on April 12, 2016, alleging he aided and abetted Kevin G. White’s fraudulent solicitation of participants in the Revelation Forex Fund, LP.
The charges stem from a larger case brought against White and his entities, RFF GP, LLC and KGW Capital Management, LLC, in July 2013. White was previously subject to a permanent injunction, a $3,365,888 restitution order, and a $4,150,000 civil monetary penalty. He was also sentenced to over eight years in prison for mail fraud in a related criminal case.
According to the CFTC’s order, between July and August 2011, Hinman contributed to a fraudulent mass solicitation email sent by White to potential investors. He further aided the scheme in May 2012 by soliciting a new investor into RFF, the fund operated by White.
The CFTC noted that Hinman fully cooperated with their investigation. As a result of the settlement, Hinman is required to pay a $140,000 civil monetary penalty and disgorge $1,138.12 in compensation received from White. He is also permanently banned from registering with the CFTC and participating in any commodity-related activities.
The CFTC acknowledged the assistance provided by the U.S. Securities and Exchange Commission’s Fort Worth, Texas, regional office during the investigation. The case was handled by CFTC staff members Harry E. Wedewer, Dmitriy Vilenskiy, John Einstman, and Paul G. Hayeck.
The CFTC urges investors to be aware of the warning signs of commodity pool fraud and provides resources for reporting suspicious activity via a toll-free hotline (866-FON-CFTC) or online complaint form.
Source: CFTC.gov
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