2023-07-21 sec-litreleases litigation_release 66 KB 2,665 chars

SEC v. Alexander Elbanna; Digital World Exchange, LLC; Boostedpro LLC; and D.W. Exchange, LLC, No. LR-25785, Middle District of Florida (July 21, 2023) — Press Release

raw: Alexander Elbanna, Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange

Alexander Elbanna, Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange, No. 8:23-cv-01638 (July 21, 2023)

Caption
United States Securities and Exchange Commission v. Elbanna
Source PDF JSON
summary

Alexander Elbanna and three controlled entities were charged by the SEC for a fraudulent scheme involving unregistered crypto asset and equity securities, resulting in a settlement and an officer bar.

paragraph

The SEC charged Alexander Elbanna and three entities—Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange, LLC—with conducting fraudulent and unregistered offerings of DWE and BPC crypto assets. Between 2018 and 2021, the defendants allegedly made false statements regarding Elbanna's wealth and expertise, causing investor losses exceeding $1 million. The defendants consented to a bifurcated settlement involving permanent injunctions and monetary relief, while Elbanna also agreed to an officer and director bar.

narrative

The SEC has charged North Carolina resident Alexander Elbanna and three entities he controlled—Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange, LLC—with orchestrating a fraudulent scheme. Between February 2018 and April 2021, Elbanna allegedly promoted unregistered crypto asset securities known as 'DWE' and 'BPC' alongside fraudulent private equity offerings. To induce investment, the complaint alleges Elbanna made materially false statements regarding his technological experience, wealth, and the operational status of his proposed trading platforms. These fraudulent activities resulted in investor losses of over $1 million. The SEC's complaint, filed in the Middle District of Florida, alleges violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Without admitting or denying the allegations, the defendants consented to a bifurcated settlement including permanent injunctions and monetary relief to be determined by the court. Additionally, Elbanna consented to an officer and director bar, and Angela Elbanna was named as a relief defendant.

Enriched metadata

Scheme
crypto-securities (95%)
Court
Middle District of Florida
Case No.
8:23-cv-01638
Outcome
settled
Entity
Alexander Elbanna
Classified crypto-securities(confidence 95%). EDGAR detection: forms 1-A/S-1/8-K· recall 43% / precision 2%. detection rule →
Statutes
Sections 5 and 17(a) of the Securities ActSections 5 and 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionAlexander ElbannaAngela ElbannaDigital World Exchange, LLCD.W. Exchange, LLCBoostedPro, LLC
Keywords
exchangeelbannallcsecuritiescrypto assetalexander elbannadigital worldworld exchangesecurities exchangeelbanna entitieselbanna digitalexchange commissiontrading platformcryptoasset

Exhibits & Attached Documents (2)

Extracted insights

Dollar amounts 1
  • $1.00M $1 million $1M–$10M
Entities 14
  • person alexander elbanna
  • person angela elbanna
  • person anna area
  • person bifurcated settlement
  • person david nasse
  • person deborah maisel
  • company digital world exchange, llc, boostedpro llc, and d.w. exchange, llc
  • person each defendant
  • person fraudulent scheme
  • person relief defendant
  • agency sec investigation
  • agency sec litigation
  • agency Securities and Exchange Commission
  • company three separate business enterprises
Triples 13
  • SEC charged Alexander Elbanna
  • Alexander Elbanna owned and controlled Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange, LLC
  • Alexander Elbanna engaged in Fraudulent Scheme
  • Alexander Elbanna founded and promoted Three Separate Business Enterprises
  • Alexander Elbanna and His Three Entities made False and Misleading Statements
  • Investors lost Over $1 Million
  • The Complaint charges Elbanna and His Three Entities
  • Each Defendant consented to Bifurcated Settlement
  • Angela Elbanna is Relief Defendant
  • Deborah Maisel conducted SEC Investigation
  • Paul Pashkoff and Melissa Hodgman supervised SEC Investigation
  • Anna Area will lead SEC Litigation
  • David Nasse will supervise SEC Litigation
PDF (from attached: complaint)
Comp25785 · Source
Text layers
Extracted body text (2,665c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25785 / July 21, 2023 Securities and Exchange Commission v. Alexander Elbanna, Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange, LLC, Civ. Action, o. 8:23-cv-01638 (M.D. Fla. filed July 20, 2023) SEC Charges North Carolina Resident for Conducting Fraudulent and Unregistered Offerings of Crypto Asset Securities The Securities and Exchange Commission today charged Alexander Elbanna and three entities that he owned and controlled with engaging in a fraudulent scheme involving unregistered offers and sales of crypto asset securities called "DWE" and "BPC." The SEC also charged Elbanna and one of his entities with fraudulent private offers and sales of equity securities. According to the SEC's complaint, between February 2018 and April 2021, Elbanna founded and promoted, in succession, three separate business enterprises: Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange, LLC. Each of these businesses allegedly included a proposed crypto asset trading platform and an "in-house exchange token" or crypto asset security whose value purportedly depended on Elbanna's successful launch of the proposed trading platform. To induce investors to purchase DWE and BPC, as well as equity securities in the corporate entity that issued DWE, the complaint alleges that Elbanna and his three entities made materially false and misleading statements to investors concerning Elbanna's level of technological experience and wealth, the risks involved in the investment, and the operation of the associated crypto asset trading platform. As a result of this misconduct, the SEC's complaint alleges that investors lost over $1 million. The complaint, filed in the U.S. District Court for the Middle District of Florida, charges Elbanna and his three entities with violating Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Each defendant, without admitting or denying the allegations, consented to a bifurcated settlement, agreeing to permanent injunctions against violating the charged provisions, conduct-based injunctions, and monetary relief in an amount to be determined by the court at a later date upon motion of the SEC. Elbanna further consented to an officer and director bar. The settlements are subject to court approval. The complaint also names Angela Elbanna as a relief defendant. The SEC's investigation was conducted by Deborah Maisel and supervised by Paul Pashkoff and Melissa Hodgman. The SEC's litigation will be led by Anna Area and supervised by David Nasse. SEC Complaint
OCR text (2,665c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25785 / July 21, 2023 Securities and Exchange Commission v. Alexander Elbanna, Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange, LLC, Civ. Action, o. 8:23-cv-01638 (M.D. Fla. filed July 20, 2023) SEC Charges North Carolina Resident for Conducting Fraudulent and Unregistered Offerings of Crypto Asset Securities The Securities and Exchange Commission today charged Alexander Elbanna and three entities that he owned and controlled with engaging in a fraudulent scheme involving unregistered offers and sales of crypto asset securities called "DWE" and "BPC." The SEC also charged Elbanna and one of his entities with fraudulent private offers and sales of equity securities. According to the SEC's complaint, between February 2018 and April 2021, Elbanna founded and promoted, in succession, three separate business enterprises: Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange, LLC. Each of these businesses allegedly included a proposed crypto asset trading platform and an "in-house exchange token" or crypto asset security whose value purportedly depended on Elbanna's successful launch of the proposed trading platform. To induce investors to purchase DWE and BPC, as well as equity securities in the corporate entity that issued DWE, the complaint alleges that Elbanna and his three entities made materially false and misleading statements to investors concerning Elbanna's level of technological experience and wealth, the risks involved in the investment, and the operation of the associated crypto asset trading platform. As a result of this misconduct, the SEC's complaint alleges that investors lost over $1 million. The complaint, filed in the U.S. District Court for the Middle District of Florida, charges Elbanna and his three entities with violating Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Each defendant, without admitting or denying the allegations, consented to a bifurcated settlement, agreeing to permanent injunctions against violating the charged provisions, conduct-based injunctions, and monetary relief in an amount to be determined by the court at a later date upon motion of the SEC. Elbanna further consented to an officer and director bar. The settlements are subject to court approval. The complaint also names Angela Elbanna as a relief defendant. The SEC's investigation was conducted by Deborah Maisel and supervised by Paul Pashkoff and Melissa Hodgman. The SEC's litigation will be led by Anna Area and supervised by David Nasse. SEC Complaint

Related documents (2)