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The U.S. Securities and Exchange Commission (SEC) has initiated legal proceedings against Brian Sewell and Rockwell Capital Management, accusing them of defrauding investors by more than a million dollars.
According to the SEC’s recent press release, Sewell, between early 2018 to mid-2019, allegedly encouraged hundreds of students from his online cryptocurrency course, the Bitcoin Academy, to invest in the Rockwell Fund. He claimed that the fund would employ artificial intelligence and trading strategies for digital asset transactions.
The SEC contends that despite gaining investments totaling $1.2 million from 15 students, Sewell did not implement the promised trading strategies. Instead, he purportedly invested the funds in Bitcoin, ultimately losing them due to a hacking incident.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, stated, “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.”
The SEC has filed a complaint with the US District Court for the District of Delaware, asserting that Sewell violated antifraud provisions of the federal securities laws. In response, Sewell and Rockwell Capital Management have chosen to settle the charges without admitting or denying the SEC’s allegations.
As part of the settlement, Sewell has agreed to a civil penalty of $223,229, while Rockwell Capital has consented to disgorgement and prejudgment interest totaling $1,602,089. Both Sewell and his company have also agreed to injunctive relief.
It is important to note that the terms of the settlement are subject to court approval. The SEC’s legal action underscores the commitment to safeguarding investors and upholding the integrity of the securities market.