Forex Fanatic Promised 83K Monthly, Pocketed 85% of Investor Cash!

SEC v. Kevin L. Jefferson, Demetrius L. Early — U.S. Securities and Exchange Commission Litigation Release No. 26440, dated November 21, 2025.

The SEC charged Kevin L. Jefferson and Demetrius L. Early with defrauding investors in a fraudulent offering of unregistered securities. They raised over $1 million from more than 65 investors, primarily targeting members of the African American community. Jefferson promised high monthly returns through Forex trading, but instead misappropriated most of the funds for commissions and personal expenses.

In Plain English

Imagine someone promising to double your money quickly by making special trades. They told people they'd earn a lot each month, like getting thousands of dollars every month. But instead of making those trades, the person took most of the money for themselves and to pay others to help them find more people to give money. The government stepped in to stop this and get some money back for the people who were tricked.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Promoting a 'Cashflow Creation Club' Kevin L. Jefferson, along with his sales agent Demetrius L. Early, solicited investors to join Jefferson's 'Cashflow Creation Club' starting at least in January 2023. They presented this as an opportunity to invest in foreign currency exchange ('Forex') trades.
2. Making Unrealistic Investment Promises Jefferson promoted himself as an expert Forex trader and promised investors substantial monthly returns. He claimed they would earn 3% to 5% monthly, with initial returns of approximately $6,000 per month, projected to grow to about $83,000 by the end of the year.
3. Targeting a Specific Community The offering specifically targeted members of the African American community in the greater Shreveport, Louisiana, and Dallas and Houston, Texas metropolitan areas, as well as elsewhere. This targeting was part of the scheme to raise funds.
4. Raising Over $1 Million Through these solicitations, Jefferson and Early successfully raised over $1,000,000 from more than 65 investors. The funds were presented as investments in Forex trading managed by Jefferson.
5. Misappropriating Investor Funds Instead of making Forex trades, Jefferson used approximately $170,000 of investor funds for purported investment-related expenses. Crucially, nearly 85% of the investor funds were misappropriated for undisclosed sales commissions paid to Early and others, and for Jefferson's personal expenses.
6. Selling Unregistered Securities The membership interests in Jefferson's Cashflow Creation Club were offered and sold as securities, but these were unregistered. This violated federal securities laws requiring registration or an exemption.

The Enforcement Action

On November 21, 2025, U.S. District Courts for the Northern District of Texas and the Southern District of Texas entered final consent judgments against Kevin L. Jefferson and Demetrius L. Early, respectively. Jefferson and Early consented to the judgments without admitting or denying the SEC's allegations. They agreed to pay a total of more than $1.1 million to settle charges that Jefferson, with Early's assistance, raised over $1,000,000 from more than 65 investors through a fraudulent offering of unregistered securities, targeting members of the African American community. The judgments permanently enjoin them from violating registration and antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Jefferson was ordered to pay $580,913 in disgorgement plus $35,490 in prejudgment interest and a $236,451 civil penalty. Early was ordered to pay $205,267 in disgorgement plus $22,529 in prejudgment interest and a $75,000 civil penalty. Both are prohibited from participating in the issuance, purchase, offer, or sale of any securities (except in personal accounts) and from acting as or being associated with any broker or dealer.

Named in this action: Kevin L. Jefferson, Demetrius L. Early.

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