SEC Charges Massachusetts Resident with Conducting $2 Million Fraudulent Investment Offering
Litigation Release No. 25577 / November 14, 2022
Securities and Exchange Commission v. Adrian J. Kawuba, Civ. Action, o. 1:22-cv-11897-NMG (D. Mass. filed November 10, 2022)
The Securities and Exchange Commission today announced charges against Massachusetts resident Adrian J. Kawuba, alleging that he conducted a fraudulent offering of securities. The SEC has obtained emergency relief in court, including a temporary restraining order and asset freeze against Kawuba.
Kawuba allegedly raised approximately $2 million from investors in a Ponzi scheme. According to the SEC's complaint, unsealed today, Kawuba promised investors they would receive returns of 25% to 50% in as little as twelve days to seven months and told investors he would use their money to finance lucrative short-term projects related to youth sports, entertainment events, and private soccer clubs. In fact, as alleged in the complaint, Kawuba used money from later investments to pay out on earlier investments, and he misappropriated investor money to pay for personal travel to the Greek islands and other destinations, to purchase a luxury automobile, and to buy tens of thousands of dollars' worth of designer goods at fashion and jewelry stores.
The SEC's complaint, filed in U.S. District Court for the District of Massachusetts, charges Kawuba with violating the antifraud provisions of 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. The Court on November 10, 2022 entered an order granting a temporary restraining order, asset freeze, and other emergency relief. The complaint also seeks permanent injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest, and civil monetary penalties.
In a parallel action, the U.S. Attorney's Office for the District of Massachusetts has filed criminal charges against Kawuba, alleging wire fraud in violation of 18 U.S.C. § 1343.
The SEC's case is being handled by Jonathan Menitove, Kerry Vasta, Sean Fishkind, David London, and Celia Moore of the SEC's Boston Regional Office. The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Massachusetts and the Boston field office of the Federal Bureau of Investigation.