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.