Airborne Wireless Network (ABWN)

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ABWN: SEC Obtains Final Judgments from Two Defendants for Their Roles in $45 Million Fraudulent Scheme

https://www.sec.gov/litigation/litreleases/2022/lr25355.htm

Litigation Release No. 25355 / April 5, 2022

Securities and Exchange Commission v. Airborne Wireless Network, et al., No. 21-civ-01772 (S.D.N.Y. filed March 2, 2021)

On April 4, 2022, the U.S. District Court for the Southern District of New York entered final judgments against Chrysilios Chrysiliou and Panagiotis Bolovis for their respective roles 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 the outstanding stock of a shell company now known as Airborne, then distributed millions of shares among himself and his associates, including Chrysiliou and Bolovis. As alleged, Chrysiliou and Bolovis participated in Kabilafkas's scheme by deceiving Airborne's transfer agent and their broker dealers in order to have the shares transferred into their names, deposited in their brokerage accounts, and cleared for sale to the public. The complaint alleges that Chrysiliou and Bolovis then sold these shares into the public market while an Airborne promotional campaign was underway, generating proceeds of approximately $1.3 million and $3.8 million, respectively. The complaint also alleges that Bolovis kicked-back all but approximately $4,000 of his proceeds to benefit Kabilafkas and his family.

Without admitting or denying the SEC's allegations, Chrysiliou and Bolovis consented to the entry of final judgments permanently enjoining them 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, and imposing penny stock bars. The final judgments also order Chrysiliou to pay $739,630 in disgorgement plus $112,612 in prejudgment interest, and a $75,000 civil penalty, for a total of $927,242, and Bolovis to pay $4,218 in disgorgement plus $789 in prejudgment interest, and a $50,000 civil penalty, for a total of $55,007.

The SEC's ongoing litigation against five remaining defendants and two relief defendants is 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, George Bagnall, and Jennifer Leete.