SEC Obtains Final Judgments from Chrysilios Chrysiliou and Panagiotis Bolovis for Their Roles in $45 Million Fraudulent Scheme
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, in October 2015, Kalistratos “Kelly” Kabilafkas secretly purchased essentially all the outstanding stock of the public shell company, Ample-Tee, Inc., which ultimately became Airborne. More specifically, Kabilafkas bought both the control block of about 84.1 million restricted shares and about 30 million shares that had purportedly been issued to about 30 residents of Thailand in a 2013 distribution submitted on Form S-1. In fact, the Thai Shareholders were simply nominees who never owned the stock. Kabilafkas 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 during a promotional campaign run on ABWN, 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.
Litigation is ongoing against the five remaining defendants and two relief defendants.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 200 E. Palmetto Park Rd, Suite 103, Boca Raton, Florida, (561) 416-8956, by email [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.