Brian Sewell Accused by the SEC of Fraud:
- The SEC accuses Brian Sewell of fraud for encouraging his students to invest in a fictitious hedge fund.
- Sewell claimed to use artificial intelligence to generate returns, collecting $1.2 million from 15 students.
- To settle the charges, Rockwell Capital Management and Sewell will pay $1.6 million and $223,229, respectively.
Scam Involving Over $1.2 Million:
Recently, 51-year-old Brian Sewell has been accused by the SEC of orchestrating a scam by persuading students to invest in a speculative fund that never existed.
By promising the use of advanced technologies, such as artificial intelligence and machine learning, to “generate returns” through cryptocurrency trading strategies, Sewell managed to convince his students to invest in the alleged “Rockwell Fund,” a fund supposedly managed by his company, Rockwell Capital Management.
“Among other things, he falsely claimed that his investment strategies would be guided by his own artificial intelligence and machine learning technology.” said the Director of the SEC’s Division of Enforcement.
However, both these technologies and the fund itself never existed. The SEC revealed that Sewell lost the investors’ funds after his digital portfolio was hacked, underscoring the risks associated with the insecure management of digital assets.
Consequences for Brian Sewell:
In total, Sewell managed to collect approximately $1.2 million from 15 students through his fictitious hedge fund. In response to these reprehensible acts, Rockwell Capital Management has agreed to pay $1.6 million, while Sewell himself will pay $223,229 to settle the fraud charges against them.
