SEC v. Brian Sewell; and Rockwell Capital Management LLC, No. LR-25936, District of Delaware (Feb. 2, 2024) — Press Release
raw: Brian Sewell and Rockwell Capital Management LLC
Brian Sewell and Rockwell Capital Management LLC, No. 1:24-cv-00137 (Feb. 2, 2024)
summary
Brian Sewell and Rockwell Capital Management settled SEC fraud charges for misappropriating $1.2 million from American Bitcoin Academy students for a non-existent hedge fund.
paragraph
Brian Sewell and Rockwell Capital Management LLC were charged with violating federal antifraud provisions for a scheme targeting students of the American Bitcoin Academy. The defendants allegedly failed to launch a promised hedge fund, instead losing $1.2 million in bitcoin to a digital wallet hack. To settle the matter, Rockwell agreed to pay $1,602,089 in disgorgement and interest, while Sewell agreed to a $223,229 civil penalty.
narrative
The SEC charged Brian Sewell and his firm, Rockwell Capital Management LLC, with fraud for a scheme targeting students of his online course, the American Bitcoin Academy. Between 2018 and 2019, Sewell solicited $1.2 million from 15 students for a purported hedge fund utilizing artificial intelligence and crypto assets. Rather than launching the fund, Sewell held the capital in bitcoin, which was eventually lost to a digital wallet hack. The defendants agreed to settle the charges without admitting or denying the allegations. Rockwell Capital Management will pay $1,602,089 in disgorgement and prejudgment interest, while Sewell will pay a $223,229 civil penalty. This settlement, filed in the District of Delaware, remains subject to court approval.
Classified crypto-securities(confidence 92%). EDGAR detection: forms 1-A/S-1/8-K· recall 43% / precision 2%. detection rule →
Statutes
Parties
ThompsonU.S. Xpress, Inc.
Keywords
sewellrockwell capitalcapital managementbrian sewellrockwellsewell rockwellsecurities exchangeexchange commissioncapitalmanagementstudentsbriansecuritiessecbitcoin
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 3
- $1.60M $1,602,089 $1M–$10M
- $1.20M $1.2 million $1M–$10M
- $223K $223,229 $100K–$1M
Entities 5
- person brian sewell
- court complaint in u.s. district court for the district of delaware
- company hundreds of online students to invest in the rockwell fund
- company rockwell capital management llc
- agency Securities and Exchange Commission
Triples 10
- Securities And Exchange Commission charges Brian Sewell and Rockwell Capital Management LLC with fraud targeting students
- Brian Sewell encouraged hundreds of online students to invest in the Rockwell Fund
- Brian Sewell received $1.2 million from 15 students
- Brian Sewell never launched the Rockwell Fund or executed advertised trading strategies
- Brian Sewell held invested money in bitcoin
- Brian Sewell's digital wallet was hacked and looted of bitcoin
- Securities And Exchange Commission filed complaint in U.S. District Court for the District of Delaware
- Rockwell Capital Management LLC agreed to pay disgorgement and prejudgment interest totaling $1,602,089
- Brian Sewell agreed to a civil penalty of $223,229
- Securities And Exchange Commission conducted investigation with Matthew S. Raalf, Jacquelyn D. King, Gregory Bockin, and Karen M. Klotz
PDF (from attached: complaint)
Text layers
Extracted body text (2,286c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25936 / February 2, 2024 Securities and Exchange Commission v. Brian Sewell and Rockwell Capital Management LLC, No. 1:24-cv-00137 (D. Del. filed February 2, 2024) SEC Charges Founder of American Bitcoin Academy Online Crypo Course with Fraud Targeting Students The Securities and Exchange Commission today announced that Brian Sewell and his company, Rockwell Capital Management agreed to settle fraud charges in connection with a scheme that targeted students taking Sewell’s online crypto trading course known as the American Bitcoin Academy. The SEC alleges that the fraudulent scheme cost 15 students $1.2 million. According to the SEC’s complaint, from at least early 2018 to mid-2019, Sewell encouraged hundreds of his online students to invest in the Rockwell Fund, a hedge fund that he claimed he would launch, and which would use cutting-edge technologies like artificial intelligence and trading strategies involving crypto assets to generate returns for investors. The complaint alleges that Sewell, who resided in Hurricane, Utah, before relocating to Puerto Rico, received approximately $1.2 million from 15 students but never launched the fund nor executed the trading strategies he advertised to investors, instead holding on to the invested money in bitcoin. The complaint further alleges that the bitcoin was eventually stolen when Sewell’s digital wallet was hacked and looted. The SEC's complaint, filed in U.S. District Court for the District of Delaware, charges the defendants with violating antifraud provisions of the federal securities laws. The defendants have agreed to settle the charges. Without admitting or denying the allegations in the complaint, the defendants have consented to injunctive relief. Defendant Rockwell Capital Management also agreed to pay disgorgement and prejudgment interest totaling $1,602,089 and Defendant Sewell agreed to a civil penalty of $223,229. The settlement is subject to court approval. The SEC's investigation was conducted by Matthew S. Raalf and Jacquelyn D. King with assistance from Gregory Bockin and Karen M. Klotz, all of the Philadelphia Regional Office. It was supervised by Assunta Vivolo, Scott A. Thompson, and Nicholas P. Grippo. SEC Complaint
OCR text (2,286c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25936 / February 2, 2024 Securities and Exchange Commission v. Brian Sewell and Rockwell Capital Management LLC, No. 1:24-cv-00137 (D. Del. filed February 2, 2024) SEC Charges Founder of American Bitcoin Academy Online Crypo Course with Fraud Targeting Students The Securities and Exchange Commission today announced that Brian Sewell and his company, Rockwell Capital Management agreed to settle fraud charges in connection with a scheme that targeted students taking Sewell’s online crypto trading course known as the American Bitcoin Academy. The SEC alleges that the fraudulent scheme cost 15 students $1.2 million. According to the SEC’s complaint, from at least early 2018 to mid-2019, Sewell encouraged hundreds of his online students to invest in the Rockwell Fund, a hedge fund that he claimed he would launch, and which would use cutting-edge technologies like artificial intelligence and trading strategies involving crypto assets to generate returns for investors. The complaint alleges that Sewell, who resided in Hurricane, Utah, before relocating to Puerto Rico, received approximately $1.2 million from 15 students but never launched the fund nor executed the trading strategies he advertised to investors, instead holding on to the invested money in bitcoin. The complaint further alleges that the bitcoin was eventually stolen when Sewell’s digital wallet was hacked and looted. The SEC's complaint, filed in U.S. District Court for the District of Delaware, charges the defendants with violating antifraud provisions of the federal securities laws. The defendants have agreed to settle the charges. Without admitting or denying the allegations in the complaint, the defendants have consented to injunctive relief. Defendant Rockwell Capital Management also agreed to pay disgorgement and prejudgment interest totaling $1,602,089 and Defendant Sewell agreed to a civil penalty of $223,229. The settlement is subject to court approval. The SEC's investigation was conducted by Matthew S. Raalf and Jacquelyn D. King with assistance from Gregory Bockin and Karen M. Klotz, all of the Philadelphia Regional Office. It was supervised by Assunta Vivolo, Scott A. Thompson, and Nicholas P. Grippo. SEC Complaint