Case 4:13-cv RAS-DDB Document 141 Filed 11/17/14 Page 1 of 4 PageID #: 2035
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1 Case 4:13-cv RAS-DDB Document 141 Filed 11/17/14 Page 1 of 4 PageID #: 2035 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS SHERMAN DIVISION U.S. COMMODITY FUTURES TRADING COMMISSION, v. Plaintiff, 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. CIVIL ACTION NO. 4:13-CV-0382 PETITION NO. 21 RECEIVER S UNOPPOSED PETITION TO APPROVE SETTLEMENT AGREEMENT WITH LINDA ALAND Kelly M. Crawford, as the court-appointed Receiver, petitions the Court for approval of the Receiver s proposed settlement agreement with Linda Aland, 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 PETITION NO. 21 TO APPROVE SETTLEMENT PAGE 1
2 Case 4:13-cv RAS-DDB Document 141 Filed 11/17/14 Page 2 of 4 PageID #: 2036 Defendants or Relief Defendants necessary to carry out the duties pursuant to this Order. Paragraph VI, 29A(i) of SRO. 2. As part of his investigation the Receiver identified $25, paid by Revelation Forex Fund and W Corporate Real Estate to Linda Aland ( Aland ), Kevin White s divorce attorney. 3. The Receiver determined that the payment to Aland was made from investor funds since Mr. White had no other source of income at that time, and because the funds were paid directly from the entities. In addition, the Receiver determined that neither Revelation Forex Fund nor W Corporate Real Estate received any reasonably equivalent value in exchange for the transfer of the $28, because the payment was for services rendered solely to Mr. White. As a result, the Receiver determined the funds could be recoverable as a fraudulent conveyance under the Uniform Fraudulent Transfer Act. 4. The Receiver made demand upon Aland to return the $28, payment she received from Revelation Forex Fund and W Corporate Real Estate. Aland is in poor health, however, and has limited assets and income. After negotiation, Aland agreed to pay the Receiver seven thousand five hundred dollars ($7,500) in ten monthly installments of $750 each, with the first installment to be paid by December 1, The Receiver believes this settlement of the claim is in the best interest of the receivership and entered into a settlement agreement with Aland that is subject to the approval of this Court. A true and correct copy of the settlement agreement is attached hereto as Exhibit A. 5. The Receiver requests the Court to approve the proposed settlement agreement with Aland because the settlement is in the best interest of the receivership estate and in the best interest of the investors. PETITION NO. 21 TO APPROVE SETTLEMENT PAGE 2
3 Case 4:13-cv RAS-DDB Document 141 Filed 11/17/14 Page 3 of 4 PageID #: 2037 WHEREFORE PREMISES CONSIDERED, the Receiver requests the Court to enter an Order approving the settlement agreement with Aland, and provide the Receiver such other and further relief at law or in equity to which the Receiver may be justly entitled. Respectfully submitted, RECEIVER KELLY M. CRAWFORD /s/ Kelly M. Crawford Kelly M. Crawford, Receiver State Bar No Scheef & Stone, LLP 500 N. Akard Street, Suite 2700 Dallas, Texas Telephone: Telecopier: CERTIFICATE OF CONFERENCE The undersigned certifies that this Motion was provided to Harry Wedewer, Esq. of the Plaintiff U.S. Commodity Futures Trading Commission, Janie Frank, Esq. of the Plaintiff Securities and Exchange Commission, and Defendant Kevin White for review on November 14, Ms. Frank indicated the Commission is unopposed to the relief sought. Mr. Wedewer indicated the CFTC is unopposed to the relief sought. Defendant Kevin White did not respond to a conference request and therefore his agreement is presumed. /s/ Kelly M. Crawford KELLY M. CRAWFORD PETITION NO. 21 TO APPROVE SETTLEMENT PAGE 3
4 Case 4:13-cv RAS-DDB Document 141 Filed 11/17/14 Page 4 of 4 PageID #: 2038 CERTIFICATE OF SERVICE The undersigned hereby certifies that on November 17, 2014, 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 Notice of Electronic Filing is being sent to the following attorneys of record and by mail to Mr. Kevin White: Harry E. Wedewer John Einstman U.S. Commodity Futures Trading Commission Three Lafayette Centre st Street, N.W. Washington, D.C Counsel for Plaintiff Kevin White One Waterway Avenue, #2236 The Woodlands, Texas Defendant /s/ Kelly M. Crawford KELLY M. CRAWFORD PETITION NO. 21 TO APPROVE SETTLEMENT PAGE 4
5 Case 4:13-cv RAS-DDB Document Filed 11/17/14 Page 1 of 3 PageID #: 2039 SETTLEMENT AGREEMENT This Settlement Agreement is entered into on the Ill ;t...day of November, 2014 by and between Linda Aland, P.C., on the one hand, and Kelly M. Crawford, in his capacity as the court appointed Receiver in the Lawsuits, as defmed below (the "Receiver"), on the other hand. WHEREAS, on or about July 9, 2013, the United States Commodity Futures Trading Commission filed a Complaint against Kevin G. White, et al, in the United States District Court for the Eastern District of Texas, Sherman Division (the "Receivership Court"), which was assigned Civil Action No. 4: 13-CV (the "CFfC Lawsuit" or "Lawsuit(s)"); and WHEREAS, on or about July 9, 2013, the Securities and Exchange Commission filed a Complaint against Kevin G. White, et al, in the Receivership Court, which was assigned Civil Action No. 4: 13-CV (the "SEC Lawsuit" or "Lawsuit(s)"); and WHEREAS, on or about July 9, 2013, in the CFfC Lawsuit, the Receivership Court entered a Statutory Restraining Order (the "SRO"), which appointed Kelly M. Crawford as Receiver and directed him to, among other things, take and have possession of certain assets defmed as "Receivership Assets"; and WHEREAS, on or about July 9, 2013, in the SEC Lawsuit, the Receivership Court entered an Order Appointing Receiver (the "SEC Appointment Order"), which appointed Kelly M. Crawford as Receiver and directed him to, among other things, take and have possession of certain assets defmed as "Receivership Assets"; and WHEREAS, Kevin White used KGW Capital Management, LLC and Revelation Forex Fund, LP to pay White's divorce attorney Linda Aland of Linda Aland, P.C. the sum of $25, for representing White in his divorce proceeding; WHEREAS, the Receiver made demand upon Linda Aland, P.C. to return the $25, it received from KGW Capital Management, LLC and Revelation Forex Fund, LP with the understanding that although Linda Aland of Linda Aland, P.C. provided family law legal services to Mr. White in good faith, the investors whose money Mr. White used to pay Linda Aland, P.C. did not authorize or consent to Mr. White using their money to pay his divorce attorney; WHEREAS, Linda Aland, P.C. denies any liability to the Receiver, denies any knowledge regarding the source of funds Mr. White used to pay for the legal services rendered, and contends the legal services she provided protected KGW Capital Management, LLC and Revelation Forex Fund, LP from the claims of Mr. White's wife; WHEREAS, the Receiver and Linda Aland, P.C. are desirous of settling the Receiver's claims without litigation so as to avoid uncertainty and expense; and NOW, THEREFORE, in consideration of the foregoing, the parties hereby agree as follows: 1 I
6 Case 4:13-cv RAS-DDB Document Filed 11/17/14 Page 2 of 3 PageID #: Linda Aland, P.C. shall pay to the Receiver the sum of Seven Thousand Five Hundred Dollars ($7,500) (the "Settlement Payment") in ten monthly installments of $750 each, with the frrst installment due on or before December 1, 2014 and the remaining installments due on or before January 1, 2015; February 1, 2015; March 1, 2015; April 1, 2015; May 1, 2015; June 1, 2015; July 1, 2015; August 1, 2015; and September 1, Payments shall be sent to Kelly M. Crawford, as the Receiver, at 500 N. Akard Street, Suite 2700, Dallas, Texas Within five business days of the Receiver's receipt of the full Settlement Payment, the parties agree to execute a Mutual Release in the form attached hereto as Exhibit A. 3. The Receiver shall seek the approval of the Receivership Court of this Settlement Agreement and if the Receivership Court does not approve this Settlement Agreement it shall be null and void. 4. It is expressly understood and agreed that the terms of this Agreement are contractual in nature and not mere recitals and that the agreements contained herein and the consideration transferred are to compromise doubtful and disputed claims and that no releases or other consideration given shall be construed or considered an admission of liability. On the contrary, this Settlement Agreement is being entered into merely to avoid litigation and any further dispute or claims and to buy peace to the extent described herein. 5. IN SIGNING THIS FULL AND COMPLETE SETTLEMENT AGREEMENT, EACH OF THE PARTIES HERETO ACKNOWLEDGES, REPRESENTS, WARRANTS, AND CONFIRMS TO EACH OTHER AS FOLLOWS: A. I HAVE CAREFULLY READ AND UNDERSTAND THE EFFECT OF THIS FULL AND COMPLETE SETTLEMENT AGREEMENT; B. I HAVE THE MENTAL CAPACITY TO UNDERSTAND THE EFFECT OF THIS FULL AND COMPLETE SETTLEMENT AGREEMENT; C. I EXECUTE THIS SETTLEMENT AGREEMENT AS A FREE AND VOLUNTARY ACT, WITHOUT ANY DURESS, COERCION, OR UNDUE INFLUENCE EXERTED BY OR ON BEHALF OF ANY PERSON OR ENTITY; D. I AM THE SOLE OWNER OF THE CLAIMS OR CAUSES OF ACTION BEING SETTLED HEREIN AND I HAVE NOT CONVEYED NOR ASSIGNED ANY INTEREST IN ANY SUCH CLAIMS OR CAUSES OF ACTION TO ANY PERSON OR ENTITY NOT A PARTY HERETO. E. I AM OVER THE AGE OF 21 AND COMPETENT AS AN ADULT TO ENTER INTO THIS MUTUAL RELEASE. [SIGNATURE PAGE FOUOWS] 2
7 Case 4:13-cv RAS-DDB Document Filed 11/17/14 Page 3 of 3 PageID #: 2041 IN WITNESS WHEREOF, this instrument has been executed by the parties on the dates hereafter indicated. LINDA ALAND, P.C. Date Executed: \_\\_. I t.l_\l_tf.. 3
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