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Case 4:13-cv-00382-RAS-DDB Document 152 Filed 05/01/15 Page 1 of 4 PageID #: 2087
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
SHERMAN DIVISION
U.S. COMMODITY FUTURES TRADING
COMMISSION,
Plaintiff,
v.
RFF GP, LLC, KGW CAPITAL MANAGEMENT
and KEVIN G. WHITE,
Defendants,
REVELATION FOREX FUND, LP, MERIDIAN
PROPANE LP, and
W CORPORATE REAL ESTATE, LP d/b/a
KGW REAL ESTATE,
Relief Defendants.
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CIVIL ACTION NO.
4:13-CV-0382
PETITION NO. 22
RECEIVER’S PETITION TO MAKE
THIRD INTERIM DISTRIBUTION TO APPROVED CLAIMANTS
Kelly M. Crawford, as the court-appointed Receiver, petitions the Court for authorization
to make a third interim distribution to Approved Claimants, and in support thereof respectfully
shows the Court as follows:
I.
1.
The Order Granting Plaintiff’s Ex parte Emergency Motion for a Statutory
Restraining Order, Appointment of a Temporary Receiver, Expedited Discovery, and Order to
Show Cause Regarding a Preliminary Injunction, and Other Equitable Relief (the “SRO”)
authorizes the Receiver to “…compromise…any actions…to preserve or increase the assets of
RECEIVER’S PETITION TO MAKE THIRD INTERIM DISTRIBUTION
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Case 4:13-cv-00382-RAS-DDB Document 152 Filed 05/01/15 Page 2 of 4 PageID #: 2088
Defendants or Relief Defendants necessary to carry out the duties pursuant to this Order.”
Paragraph VI, 29A(i) of SRO.
2.
On March 10, 2014 the Court entered an Order approving the Receiver’s
distribution plan, allowing the Receiver to make priority distributions on a pro rata basis to
Approved Claimants who were investors in the Revelation Forex Fund [Docket No. 89]. The
Court approved claims totaling $7,012,2671 held by the Approved Claimants.
3.
In that same Order the Court authorized the Receiver to make an initial interim
distribution to the Approved Claimants in the total amount of $3,085,398, which represented
payment of 44% of the total approved claims of $7,012.267. Pursuant to the order, the Receiver
made the initial interim distribution to the Approved Claimants.
4.
On July 29, 2014, the Court authorized the Receiver to make a second interim
distribution to Approved Claimants in the total amount of $560,981, which represented an
additional payment of 8% of the total approved claims of $7,012,267 [Docket No. 124].
Pursuant to the order, the Receiver made the second interim distribution to the Approved
Claimants. The two interim distributions made to date equal a 52% repayment to the Approved
Claimants of their total loss.
5.
The receivership account currently has a balance of $194,690. Of that amount,
$94,755 is encumbered as accrued liabilities for administrative expenses of the receivership.
Accordingly, the Receiver seeks authority to distribute $95,002 to the Approved Claimants on a
pro rata basis pursuant to the Court approved Distribution Plan and as shown on the schedule
attached hereto as Exhibit A and incorporated herein by reference. This third interim distribution
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The total amount of claims is $7,012,267, and the net amount of claims approved by the Court in the Receiver’s
proposed Distribution Plan is $7,006,007 because it takes into account a $5,409 payment of false profits to one
claimant. This payment of false profits was returned by the claimant to the receivership.
RECEIVER’S PETITION TO MAKE THIRD INTERIM DISTRIBUTION
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Case 4:13-cv-00382-RAS-DDB Document 152 Filed 05/01/15 Page 3 of 4 PageID #: 2089
will represent an additional payment of 1.35% of the total approved claims of $7,012,267, and
will bring the total amount returned to Approved Claimants from 52% to 53.35%.
WHEREFORE PREMISES CONSIDERED, the Receiver requests the Court to enter an
Order authorizing the Receiver to make a third interim distribution to Approved Claimants as
shown in the scheduled attached hereto as Exhibit A, and provide the Receiver such other and
further relief at law or in equity to which the Receiver may be justly entitled.
Respectfully submitted,
SCHEEF & STONE, L.L.P.
By:
/s/ Charlene C. Koonce
Charlene C. Koonce
State Bar No. 11672850
500 North Akard Street, Suite 2700
Dallas, Texas 75201
Telephone: 214.706.4200
Telecopier: 214.706.4242
ATTORNEYS FOR RECEIVER
KELLY M. CRAWFORD
CERTIFICATE OF CONFERENCE
The undersigned hereby certifies that on April 29, 2015 he conferred with Harry
Wedewer, counsel for the Plaintiff U.S. Commodity Futures Trading Commission regarding the
relief sought in this Petition and Mr. Wedewer indicated the Commission is unopposed to the
relief sought.
/s/ Kelly M. Crawford
KELLY M. CRAWFORD
RECEIVER’S PETITION TO MAKE THIRD INTERIM DISTRIBUTION
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Case 4:13-cv-00382-RAS-DDB Document 152 Filed 05/01/15 Page 4 of 4 PageID #: 2090
CERTIFICATE OF SERVICE
The undersigned hereby certifies that on May 1, 2015 I electronically filed the foregoing
document with the clerk of the U.S. District Court, Eastern District of Texas, using the electronic
case filing system of the court. The electronic case filing system sent a “Notice of Electronic
Filing” to the following attorneys of record, and a copy was mailed to the individual pro se
defendant identified below:
Harry E. Wedewer
John Einstman
U.S. Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, N.W.
Washington, D.C. 20581
Counsel for Plaintiff
Kevin G. White #22043-078
USP Beaumont
U.S. Penitentiary
P.O. Box 26030
Beaumont, TX 77720
Defendant, Pro Se
/s/ Kelly M. Crawford
KELLY M. CRAWFORD
RECEIVER’S PETITION TO MAKE THIRD INTERIM DISTRIBUTION
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Case 4:13-cv-00382-RAS-DDB Document 152-1 Filed 05/01/15 Page 1 of 1 PageID #: 2091
Third Interim Distribution Chart
Investor
Arkesh Kumar
Bedford West Insurance Company Ltd.
Total Net Investment
Receiver's
Distribution Amount
Recommended
based on a 0.013548
Claim Amount
pro rata calculation
25,000.00
25,000.00
339
300,000.00
300,000.00
4,064
c/o Dr. Fred C. Edge
Brenner, Henry Clifton
Cucalon, LP
50,000.00
50,000.00
677
100,000.00
100,000.00
1,355
600,000.00
600,000.00
8,129
c/o Tony Cucalon
Edge Family Limited Partnership
c/o Hazel R. Edge
Edge, Carl C.
850,000.00
850,000.00
11,516
Edgewood Associations, LLC
500,000.00
500,000.00
6,774
100,000.00
100,000.00
1,355
300,000.00
300,000.00
4,064
0.00
0.00
93,155.00
93,155 .00
1,262
33,332.00
33,332.00
452
750,000.00
750,000.00
10,161
1,355
c/o Hazel R. Edge, Trustee
Ellerbeck Family Partners Limited 1, LP
c/o Ron Ellerbeck
Fred J. Nesbit
Health First Medical Center, PC
c/o Dr. Fred C. Edge
Jim Phillips IRA
Equity Trust Company dba
Sterling Trust, Custodian
Jim Phillips Roth IRA
Equity Trust Company dba
Sterling Trust, Custodian
Keiser Family Trust
c/o Randall & Kathleen Keiser, Co-TIES
Mackness, Terry
100,000.00
100,000.00
Newsom, Gary D.
200,000.00
0.00
0
Nita Kissel Fanning
100,000.00
100,000.00
1,355
200,000.00
200,000.00
2,710
24,701.00
24,701.00
335
401,079.00
401,079.00
5,434
35,000.00
35,000.00
474
750,000.00
750,000.00
10,161
250,000.00
250,000.00
3,387
Smith, Mike and Carol Peters
100,000.00
100,000.00
1,355
Smith, Preston
750,000.00
750,000.00
10,161
Smith, Preston
500,000.00
500,000.00
6,774
100,000.00
100,000.00
1,355
7,212,267.00
7,012,267.00
95,002
Equity Trust Company dba
Sterling Trust, Custodian
Owens, Peter
Phillips, Jan
Roth IRA
Phillips, Jim I & Jan P.
Joint Account
Rainsley, Glen E. & Susan F.
Robilliard, John
Wilhoit S.A.
Schmitt, Ann Louise
fbo Martha Schmitt, Dec'd
Roth IRA
Winlett, LLC
James & Theresa Abraham
EXHIBIT
I
A
Case 4:13-cv-00382-RAS-DDB Document 152-2 Filed 05/01/15 Page 1 of 1 PageID #: 2092
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
SHERMAN DIVISION
U.S. COMMODITY FUTURES TRADING
COMMISSION,
Plaintiff,
v.
RFF GP, LLC, KGW CAPITAL MANAGEMENT
and KEVIN G. WHITE,
Defendants,
REVELATION FOREX FUND, LP,
MERIDIAN PROPANE LP, and
W CORPORATE REAL ESTATE, LP d/b/a
KGW REAL ESTATE,
Relief Defendants.
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CIVIL ACTION NO.
4:13-CV-0382
ORDER GRANTING PETITION NO. 22
RECEIVER’S UNOPPOSED PETITION
TO MAKE THIRD INTERIM DISTRIBUTION TO APPROVED CLAIMANTS
On this date, the Court considered Petition No. 22, Receiver’s Unopposed Petition to
Make Third Interim Distribution to Approved Claimants (the “Petition”). The Court finds the
Petition is just and appropriate and should be granted.
ACCORDINGLY, it is hereby ordered that the Receiver is authorized to make a pro rata
interim distribution of $95,002 of receivership assets recovered by the Receiver to the approved
claimants in the amounts as shown on Exhibit A attached to the Petition. To the extent an
investor with an approved claim invested qualified funds with the Defendants, the Receiver may
make the distribution to the approved investor payable to the investor’s qualified fund.