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March 2, 2021
On Tuesday, the Securities and Exchange Commission (SEC) filed a complaint in the Southern District of New York against Airborne Wireless Network (Airborne) and several individuals, including Kalistratos “Kelly” Kabilafkas, also known as Mark McKinney (Kabilafkas), Timoleon Kabilafkas, Chrysilios Chrysiliou, Panagiotis Bolovis, Eric Scheffey, Moshe Rabin (Rabin), and Jack Edward Daniels (Daniels) (collectively, the defendants), as well as the respective trustees of the Tim Kabilafkas Revocable Trust Dated and the Magdaline Kabilafkas Revocable Trust (collectively, the Relief Defendants) over their alleged $45 million fraudulent scheme.
According to the complaint, Kabilafkas, between August 2015 and at least May 2018, “orchestrated a scheme to defraud market participants, including retail investors…, using a publicly traded company, Airborne Wireless Network, which he secretly controlled.” Kabilafkas allegedly “launched the scheme by covertly acquiring millions of Airborne shares, then arranging to deceive brokers and a transfer agent so he and his associates could deposit those shares in their brokerage accounts and sell them.” The SEC contended that the pinnacle of the scheme was when Kabilafkas, Daniels, and Airborne “inflated the company’s stock price through multi-million dollar promotional campaigns,” which allowed Kabilafkas and his associates to garner “$23 million by dumping the shares, obtained for a small fraction of that amount, on an unsuspecting market.” Additionally, the SEC stated that during this time, Airborne was also able to raise more than $22 million from investors, “while its public filings contained numerous material misstatements and omissions.” As a result, the defendants “netted over $45 million in illicit proceeds.”