The SEC Files Charges Against Founder of Online Crypto Course for Fraud Scheme
The U.S. Securities and Exchange Commission (SEC) has taken legal action against Brian Sewell and his company Rockwell Capital Management for allegedly defrauding investors out of more than a million dollars. According to the SEC, Sewell encouraged hundreds of students from his online crypto course, the Bitcoin Academy, to invest in the Rockwell Fund. He claimed that the fund would utilize artificial intelligence and trading strategies to buy and sell digital assets.
The SEC alleges that 15 students invested a total of $1.2 million in Sewell’s fund. However, instead of implementing the advertised trading strategies, Sewell invested the funds in Bitcoin. Unfortunately, he lost the funds in a hacking incident.
Settlement and Penalties
The SEC has filed a complaint against Sewell for violating antifraud provisions of federal securities laws. Both Sewell and his company have agreed to settle the fraud charges without admitting or denying the allegations. Sewell will pay a civil penalty of $223,229, while Rockwell Capital will disgorge and pay prejudgment interest totaling $1,602,089. Additionally, both parties have consented to injunctive relief. The settlement terms are still pending court approval.
Hot Take
The U.S. SEC takes strong action against Brian Sewell and Rockwell Capital Management for defrauding students through false claims about their crypto hedge fund. This case highlights the importance of conducting thorough due diligence before investing in any fund or program, especially in the cryptocurrency industry where scams are prevalent. Investors should be cautious about promises of guaranteed returns and carefully research the background and track record of investment managers before committing their funds.
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