2022-08-18 sec-litreleases litigation_release 64 KB 1,942 chars

SEC v. Eric Scheffey, No. LR-25476, Southern District of New York (Aug. 18, 2022) — Press Release

raw: Airborne Wireless Network, et al.

Airborne Wireless Network, et al., No. LR-25476 (S.D.N.Y. Aug. 18, 2022)

Caption: SEC v. Eric Scheffey

summary

Eric Scheffey received a final judgment for his role in a $45 million fraud scheme involving Airborne Wireless Network, resulting in a $75,000 penalty and a penny stock bar.

paragraph

Eric Scheffey was charged with participating in a $45 million scheme to control and promote Airborne Wireless Network through deceptive practices. He facilitated the fraud by deceiving broker-dealers to clear shares for public sale during a coordinated promotional campaign. The final judgment includes a $75,000 civil penalty and a permanent penny stock bar.

narrative

The SEC obtained a final judgment against Eric Scheffey for his role in a $45 million fraudulent scheme involving Airborne Wireless Network. Orchestrated by Kalistratos 'Kelly' Kabilafkas, the scheme involved secretly controlling a shell company and distributing millions of shares to associates. Scheffey participated by deceiving broker-dealers to clear these shares for sale during an intensive promotional campaign. Without admitting or denying the allegations, Scheffey consented to a permanent injunction against violating federal securities laws. His settlement also includes a $75,000 civil penalty and a penny stock bar. While Scheffey's case has concluded, litigation against four additional defendants and two relief defendants remains ongoing.

Enriched metadata

Scheme: pump-and-dump (95%)
Court: Southern District of New York
Outcome: settled
Civil penalty: $75,000
Entity: Airborne Wireless Network
CIK: 0001537258

Classified pump-and-dump(confidence 95%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →

Extracted insights

Dollar amounts 2

$45.00M $45 Million $10M–$100M
$75K $75,000 $10K–$100K

Entities 11

person eric scheffey
person final judgment
person george bagnall
person olivia s. choe
person penny stock bar
person peter rosario
agency sec investigation
agency sec litigation
agency sec litigation against four remaining defendants and two relief defendants
agency Securities and Exchange Commission
court united states district court for the southern district of new york

Triples 17

SEC Obtains Final Judgment Against Defendant For Role In $45 Million Fraudulent Scheme
United States District Court For The Southern District Of New York Entered Final Judgment Against Eric Scheffey On August 17, 2022
Eric Scheffey Was Charged With Participating In Fraudulent Scheme To Gain Control Of Airborne Wireless Network, Promote Its Stock, And Defraud Investors
Kalistratos "Kelly" Kabilafkas Secretly Purchased Essentially All Outstanding Stock Of Airborne
Kalistratos "Kelly" Kabilafkas Secretly Controlled Airborne
Kalistratos "Kelly" Kabilafkas Distributed Millions Of Shares Among Himself And Associates Including Eric Scheffey
Eric Scheffey Deceived Broker-Dealers
Eric Scheffey Sold Shares Into Public Market During Airborne Promotional Campaign
Eric Scheffey Consented To Final Judgment
Final Judgment Ordered $75,000 Civil Penalty
Final Judgment Imposed Penny Stock Bar
Daniel Maher, Nick Margida, And Drew Dorman Conduct SEC Litigation Against Four Remaining Defendants And Two Relief Defendants
Olivia S. Choe Supervised SEC Litigation
Paul J. Bohr, Jennie B. Krasner, Drew Dorman, Jeffrey Anderson, And Robert Nesbitt Conducted SEC Investigation
Enforcement Division's It Forensics Lab Assisted SEC Investigation
Peter Rosario Supervised SEC Investigation
George Bagnall Supervised SEC Investigation

View original SEC litigation releasesec.gov

Extracted body text (1,942c)

SEC Obtains Final Judgment Against Defendant for Role in $45 Million Fraudulent Scheme Litigation Release No. 25476 / August 18, 2022 Securities and Exchange Commission v. Airborne Wireless Network, et al., No. 21-civ-01772 (S.D.N.Y. filed March 2, 2021) On August 17, 2022, the U.S. District Court for the Southern District of New York entered a final judgment against Eric Scheffey, who was charged with participating in a fraudulent scheme to gain control of Airborne Wireless Network, promote its stock, and defraud investors. According to the SEC's complaint, filed on March 2, 2021, Kalistratos "Kelly" Kabilafkas secretly purchased essentially all of the outstanding stock of a shell company now known as Airborne, which he secretly controlled, and then distributed millions of shares among himself and his associates, including Scheffey. As alleged, Scheffey participated in Kabilafkas' scheme by deceiving broker-dealers in order to have the shares deposited in his brokerage accounts and cleared for sale to the public. The complaint alleges that Scheffey then sold these shares into the public market while an Airborne promotional campaign was underway. Without admitting or denying the SEC's allegations, Scheffey consented to the entry of a final judgment permanently enjoining him from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, ordering a $75,000 civil penalty, and imposing a penny stock bar. The SEC's litigation against four remaining defendants and two relief defendants is ongoing and being conducted by Daniel Maher, Nick Margida, and Drew Dorman, and supervised by Olivia S. Choe. The SEC's investigation was conducted by Paul J. Bohr, Jennie B. Krasner, Drew Dorman, Jeffrey Anderson, and Robert Nesbitt, with the assistance of the Enforcement Division's IT Forensics Lab, and supervised by Peter Rosario and George Bagnall.

OCR text (1,942c · html-text · 99% conf)