Potential Forex Hedge Fund Scam

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preciseauctions

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Hey all - I was just in Las Vegas the other week for the Money Show Conference.

The MoneyShow Las Vegas

There were many different companies offering tons of different investments (oil, gas, coal, forex, stocks, etc.)

One company that I took notice of was KGWCapital.

KGW Capital

Prior to going to the event, the Money Show email list sent out an brief email talking about KGWCapital and their Revelation Forex Hedge Fund - which was just recently rated the #2 Forex Hedge Fund by Elite Forex Funds:

http://www.eliteforexfunds.com/

Revelation Forex Fund

I though - cool, they are doing pretty strong returns, let me definitely stop by this booth and chat with them and learn more about this fund.

I talked to Kevin G. White (KGW - the guy whos face you see on the Revelation Forex site).

He said they trade through FXCM, have an arbitrage strategy between pairs, charge the 2 and 20 hedge fund fees and have a minimum investment of $250,000. There was no lock up period either with the fund.

He said they were really happy to get listed on EliteForexFunds.com and had to show 4 years of audited trades and have a minimum of $10M under management to qualify. That was their main reason for being at the show - to pitch their forex fund.

I said thanks and walked to the next booth. When I got home though, I did some digging. Things just didn't seem right - I had never heard of EliteForexFunds.com - WTF is that lol. Did some basic whois info on the domain and looks like it was registered in March of 2013. Red Flag #1

Did a few more seconds of digging and then found that the site EliteForexfunds.com and KGWCapital.com and hosted on the same server block. Huge Red Flag #2 - this screams scam. Creating your very own rating site...

Lastly - this was the kicker - their main site says that the fund is a $1 Billion dollar fund (yet on the Revelation site it says limited to 100 investors):

KGW Capital

For a fund that returned 385.84% since 2009 and supposedly $1B under management, things are just not adding up.

What are everyone's thoughts on this company. They seem legit at first glance, but when you start to question - if it looks to good to be true, it probably isn't - the facts point otherwise.
 
Very nice research path and expert example of due diligence; respect. It always hard to say scam, but the hearder it is to believe the easier it is to say scam - i guess. It's so easy to appear to be completely separate entities in cyberspace, you'd think a half decent scam artist would be harder to track... :) but then maybe totally legit - who else is listed on EFF? (we all know this, really :) )

Just looked at the website - don't look like a billion dollar hedge fund website - on the other heand this does - http://www.citibank.com/transactionservices/home/securities_svcs/hfs.jsp ;)
 
Last edited:
preciseauctions said:
Hey all - I was just in Las Vegas the other week for the Money Show Conference.

The MoneyShow Las Vegas

There were many different companies offering tons of different investments (oil, gas, coal, forex, stocks, etc.)

One company that I took notice of was KGWCapital.

KGW Capital

Prior to going to the event, the Money Show email list sent out an brief email talking about KGWCapital and their Revelation Forex Hedge Fund - which was just recently rated the #2 Forex Hedge Fund by Elite Forex Funds:

http://www.eliteforexfunds.com/

Revelation Forex Fund

I though - cool, they are doing pretty strong returns, let me definitely stop by this booth and chat with them and learn more about this fund.

I talked to Kevin G. White (KGW - the guy whos face you see on the Revelation Forex site).

He said they trade through FXCM, have an arbitrage strategy between pairs, charge the 2 and 20 hedge fund fees and have a minimum investment of $250,000. There was no lock up period either with the fund.

He said they were really happy to get listed on EliteForexFunds.com and had to show 4 years of audited trades and have a minimum of $10M under management to qualify. That was their main reason for being at the show - to pitch their forex fund.

I said thanks and walked to the next booth. When I got home though, I did some digging. Things just didn't seem right - I had never heard of EliteForexFunds.com - WTF is that lol. Did some basic whois info on the domain and looks like it was registered in March of 2013. Red Flag #1

Did a few more seconds of digging and then found that the site EliteForexfunds.com and KGWCapital.com and hosted on the same server block. Huge Red Flag #2 - this screams scam. Creating your very own rating site...

Lastly - this was the kicker - their main site says that the fund is a $1 Billion dollar fund (yet on the Revelation site it says limited to 100 investors):

KGW Capital

For a fund that returned 385.84% since 2009 and supposedly $1B under management, things are just not adding up.

What are everyone's thoughts on this company. They seem legit at first glance, but when you start to question - if it looks to good to be true, it probably isn't - the facts point otherwise.
Click to expand...

I think you've already called it correctly, the only thing you haven't looked at is whether or not they are regulated as required by law. I'll take a wild guess and say theyre not, now I'll have to go and prove that but it shouldnt be too hard.

The vast majority of vendors at those shows are just out to take your money, have nothing to do with any of them.
 
Nice due diligence which lead you to determine that they are a scam. This is a great example of why traders should always take time to perform due diligence. (y)
 
Rambo35 said:
Nice due diligence which lead you to determine that they are a scam. This is a great example of why traders should always take time to perform due diligence. (y)
Click to expand...

That's the key right there. People must start to realise the power of doing their own due diligence.

What's so upsetting about not doing it, is the internet makes it so easy. I mean even if you don't know too much all you have to do is ask a question on a board like this and you'll get help and ideas.

Everyone that loses money to such things as boliler room scams or property fraud, often offshore, has one thing in common - they relied on the nice salesmen for their information. But if only they'd taken 10-120 mins to do some digging, to ask some questions. Sadly, it's only after they realise they've been scammed that they hit the internet.

PS. When the domain was first registed is always a good check, that's onething that can't be faked. Check here - Whois Lookup & Domain Availability Search | DomainTools
 
BobbyBB said:
That's the key right there. People must start to realise the power of doing their own due diligence.

What's so upsetting about not doing it, is the internet makes it so easy. I mean even if you don't know too much all you have to do is ask a question on a board like this and you'll get help and ideas.

Everyone that loses money to such things as boliler room scams or property fraud, often offshore, has one thing in common - they relied on the nice salesmen for their information. But if only they'd taken 10-120 mins to do some digging, to ask some questions. Sadly, it's only after they realise they've been scammed that they hit the internet.

PS. When the domain was first registed is always a good check, that's onething that can't be faked. Check here - Whois Lookup & Domain Availability Search | DomainTools
Click to expand...

I agree. There is no excuse for not doing it. Those who do not bother and get burned should at least have the decency not to complain about it.
 
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