Adrian J. Kawuba

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26040 / July 1, 2024

Securities and Exchange Commission v. Adrian J. Kawuba, Civ. Action No. 1:22-cv-11897-NMG (D. Mass. filed November 10, 2022)

Court Enters Final Judgment Against Massachusetts Resident Who Conducted $2 Million Ponzi Scheme

On June 28, 2024, the U.S. District Court for the District of Massachusetts entered a final judgment against Adrian J. Kawuba, in an SEC case alleging that he raised approximately $2 million from investors in a fraudulent offering of securities and Ponzi scheme.

The SEC's complaint, filed on November 10, 2022, alleged that 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 final judgment enjoins Kawuba from future violations of 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, and from participating in the offer or sale of any security to investors or potential investors, including but not limited to soliciting or accepting funds from any investor or potential investor in the offer or sale of any securities, provided, however, that the injunction does not prevent Kawuba from purchasing or selling registered securities for his own personal accounts. The final judgment also orders Kawuba to pay disgorgement in the amount of $312,693, plus prejudgment interest of $11,403.44, and offsets these in an amount equal to the forfeiture and/or restitution ordered against Kawuba in the parallel criminal case, United States v. Adrian Kawuba, 23-cr-10012-WGY (D. Mass.)

The SEC's litigation in this matter is now concluded.

In the parallel criminal case, on April 11, 2024, Kawuba was sentenced to 27 months in prison, followed by three years of supervised release. Kawuba was also ordered to pay restitution of more than $625,000, forfeiture of more than $2.2 million, and to pay a special assessment of $400. In December 2023, Kawuba pleaded guilty to four counts of wire fraud.

The SEC's case was handled by Jonathan Menitove, Kerry Vasta, Sean Fishkind, David London, and Celia Moore of the SEC's Boston Regional Office.

• Final Judgment