A man accused of luring hundreds of investors with false claims about a crypto project tied to stem cell technology has been hit with a $1.1 million judgment after failing to appear in court.
On 3 June, a federal judge in Georgia ruled in favour of the US Securities and Exchange Commission (SEC) against Keith Crews, a 69-year-old from Kennesaw, who was accused of fraudulently raising $800,000 through his companies Stem Biotech LLC and Four Square Biz LLC.
The judgment came after Crews failed to respond to the SEC’s civil complaint, originally filed in August 2023.
Source: PacerMonitor
According to court filings, Crews promoted a digital asset called “Stemy Coin” between October 2019 and May 2021, claiming it was backed by gold and stem cell medical technology.
The SEC said he used a mix of email outreach, online marketing, and community ties—including religious networks and relationships in African-American communities—to pitch the offering to approximately 200 investors, many of whom were not accredited or experienced.
The complaint said Crews made repeated false claims, telling investors his company had existing laboratories, medical products, and active partnerships with healthcare professionals.
None of it existed.
The SEC stated,
“Crews and his entities had no existing stem cell technology, products, or operations, there was no partnership with the claimed entities.”
Everything was fabricated.
To add credibility, Crews allegedly misused the names of real doctors and firms without consent.
One example involved the unauthorised use of Dr. Shah’s name and his company, Alexandros, which later issued a formal request demanding that Crews stop promoting the false connection.
Another entity, BHI, reportedly sent a cease and desist letter in January 2021 after its branding and product names were used without permission in connection with Stemy Coin promotions.
Crews also appointed so-called “ambassadors” to spread promotional materials he personally approved, helping to amplify the false narrative around his companies.
Judge Tiffany Johnson of the Northern District of Georgia issued a default judgment, ordering Crews to pay over $1.1 million in penalties.
That total includes $530,000 in disgorged profits, nearly $51,000 in prejudgment interest, and another $530,000 as a civil penalty.
The court also imposed a permanent injunction prohibiting Crews from committing further violations of federal securities laws.
The judgment arrives during a period of reduced crypto enforcement under the Trump administration.
With fewer actions being pursued this year, the ruling is one of the SEC’s few recent legal victories tied to digital asset fraud.
Crews did not respond to the charges or make any attempt to defend himself in court, leading to the default ruling without a trial.
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