SEC v. Airborne Wireless Network

Airborne Wireless Network, Kalistratos "Kelly" Kabilafkas, and Timoleon "Tim" Kabilakfas allegedly orchestrated a fraudulent scheme to gain control of Airborne, promote its stock, and defraud investors. Kelly Kabilafkas allegedly covertly purchased essentially all the outstanding shares of a shell company that would become Airborne, which he secretly controlled, and then distributed millions of shares among himself, his father, and other associates. Also as alleged, Kelly Kabilafkas, through Airborne and its nominal CEO, co-defendant Jack Edward Daniels, spent millions of dollars on an advertising campaign that concealed that Airborne was a vehicle for Kabilafkas's fraudulent scheme. The Kabilafkases and their associates allegedly sold their Airborne shares for proceeds of more than $22 million. At the same time, as alleged, Airborne raised approximately $22.8 million from unsuspecting investors through public and private offerings, while Airborne's materially false and misleading statements about the company were publicly available. The scheme allegedly raised nearly $45 million.

Summary generated from official Securities and Exchange Commission press release