SEC Charges Founder of American Bitcoin Academy Online Crypto Course with Fraud Targeting Students
summary
Brian Sewell and Rockwell Capital Management settled SEC fraud charges for defrauding 15 students of $1.2 million through a non-existent AI-driven crypto hedge fund.
paragraph
Brian Sewell and his firm, Rockwell Capital Management, settled SEC charges for defrauding 15 students of $1.2 million via a purported crypto hedge fund. The scheme involved false claims of using proprietary artificial intelligence and machine learning technologies that never existed. The defendants agreed to pay $1,602,089 in disgorgement and interest, alongside a $223,229 civil penalty for Sewell.
narrative
The SEC announced a settlement with Brian Sewell and Rockwell Capital Management regarding a fraud scheme targeting students of Sewell’s 'American Bitcoin Academy.' Between 2018 and 2019, Sewell solicited $1.2 million from 15 students for a crypto hedge fund he claimed would use advanced artificial intelligence. In reality, the fund never launched, and the invested capital was held in bitcoin that was eventually lost to a digital wallet hack. To resolve federal antifraud charges, Rockwell Capital Management agreed to pay $1,602,089 in disgorgement and interest, while Sewell agreed to a $223,229 civil penalty. The settlement, which includes injunctive relief, was reached without the defendants admitting or denying the allegations. The case was filed in the U.S. District Court for the District of Delaware and remains subject to court approval.
Classified crypto-securities(confidence 95%). EDGAR detection: forms 1-A/S-1/8-K· recall 43% / precision 2%. detection rule →
Statutes
15 U.S.C. § 77q(a)
Parties
gurbir s. grewalhundreds of his online students to invest in the rockwell fundinvestor alerts on investment frauds touting new technologiesSecurities and Exchange Commissionthe sec's complaintthe sec's investigationthe sec's office of investor education and advocacythe securities and exchange commission
Keywords
secstudentsamerican bitcoinbitcoin academysewellbitcoincryptoonline cryptoonlinefundamericaninvestmentacademyagreedinvestors
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 8
- person gurbir s. grewal
- company hundreds of his online students to invest in the rockwell fund
- company investor alerts on investment frauds touting new technologies
- agency Securities and Exchange Commission
- agency the sec's complaint
- agency the sec's investigation
- agency the sec's office of investor education and advocacy
- agency the securities and exchange commission
Triples 16
- The Securities and Exchange Commission Announced 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 The fraudulent scheme cost 15 students $1.2 million
- Sewell Encouraged Hundreds of his online students to invest in the Rockwell Fund
- Sewell Received Approximately $1.2 million from 15 students
- The complaint Alleges The bitcoin was eventually stolen when Sewell’s digital wallet was hacked and looted
- Gurbir S. Grewal Said Sewell defrauded students in his online American Bitcoin Academy of over a million dollars through a series of lies about investment opportunities in his purported crypto hedge fund
- The SEC's complaint Charges The defendants with violating antifraud provisions of the federal securities laws
- The defendants Agreed To settle the charges
- The defendants Consented To injunctive relief
- Rockwell Capital Management Agreed To pay disgorgement and prejudgment interest totaling $1,602,089
- 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
- The SEC's investigation Was supervised By Assunta Vivolo, Scott A. Thompson, and Nicholas P. Grippo
- The SEC's Office of Investor Education and Advocacy Caution Investors to check the background of anyone selling them an investment and to always independently research investment opportunities
- The SEC's Office of Investor Education and Advocacy Has issued Investor Alerts on investment frauds touting new technologies
Extracted body text (2,943c)
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. “We allege that Sewell defrauded students in his online American Bitcoin Academy of over a million dollars through a series of lies about investment opportunities in his purported crypto hedge fund. Among other things, he falsely claimed that his investment strategies would be guided by his own ‘artificial intelligence’ and ‘machine learning’ technology which, like the fund itself, never existed,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “Whether it’s AI, crypto, DeFi or some other buzzword, the SEC will continue to hold accountable those who claim to use attention-grabbing technologies to attract and defraud investors.” 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. The SEC's Office of Investor Education and Advocacy cautions investors to check the background of anyone selling them an investment and to always independently research investment opportunities and has issued Investor Alerts on investment frauds touting new technologies. Additional information is available on Investor.gov and SEC.gov.
OCR text (2,943c · html-text · 99% conf)
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. “We allege that Sewell defrauded students in his online American Bitcoin Academy of over a million dollars through a series of lies about investment opportunities in his purported crypto hedge fund. Among other things, he falsely claimed that his investment strategies would be guided by his own ‘artificial intelligence’ and ‘machine learning’ technology which, like the fund itself, never existed,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “Whether it’s AI, crypto, DeFi or some other buzzword, the SEC will continue to hold accountable those who claim to use attention-grabbing technologies to attract and defraud investors.” 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. The SEC's Office of Investor Education and Advocacy cautions investors to check the background of anyone selling them an investment and to always independently research investment opportunities and has issued Investor Alerts on investment frauds touting new technologies. Additional information is available on Investor.gov and SEC.gov.