SEC v. Kevin L. Jefferson

Kevin L. Jefferson, with Demetrius L. Early’s assistance, allegedly raised over $1,000,000 from more than 65 investors through a fraudulent offering of unregistered securities, targeting members of the African American community in the greater Shreveport, Louisiana, and Dallas and Houston, Texas metropolitan areas and elsewhere. According to the SEC, from at least January 2023 through December 2023, Jefferson and Early solicited investors to purchase membership interests in Jefferson’s Cashflow Creation Club, telling them Jefferson would make foreign currency exchange (“Forex”) trades on their behalf. Jefferson allegedly promoted himself as an expert Forex trader and represented to investors that they would earn 3 to 5% monthly returns of approximately $6,000 per month, and that they should expect to grow those monthly returns up to approximately $83,000 by the end of the year. The complaints alleged that instead, Jefferson used approximately $170,000 of investor funds towards purported investment-related expenses, misappropriating nearly 85% of investor funds to pay undisclosed sales commissions to Early (and others) and for his personal expenses.

Summary generated from official Securities and Exchange Commission press release