A federal judge in Georgia entered a $1.1 million default judgment in favor of the US Securities and Exchange Commission (SEC) after Keith Crews, a resident of Kennesaw, failed to respond to civil fraud charges tied to a crypto offering allegedly based on non-existent stem cell technology.
The SEC filed its lawsuit against Crews in August 2023, accusing the 69-year-old man of conducting an affinity fraud scheme through two companies under his control, Stem Biotech LLC and Four (4) Square Biz LLC.
On June 3, 2025, Judge Tiffany Johnson of the United States District Court for the Northern District of Georgia issued a default ruling after Crews made no effort to answer the charges or defend himself in court.
Court orders over $1.1 Million in penalties
According to court documents, Judge Johnson ordered Crews to pay more than $1.1 million in total financial penalties. This includes the disgorgement of over $530,000 in illicit profits, nearly $51,000 in prejudgment interest, and an additional $530,000 as a civil penalty. The ruling also includes a permanent injunction barring Crews from violating securities laws in the future.
The SEC’s August 2023 complaint mentioned the defendant used a pattern of deceptive practices between October 2019 and May 2021. Crews is alleged to have raised at least $800,000 from approximately 200 investors through the promotion and sale of a digital token known as “Stemy Coin.”
These sales were conducted primarily via email, phone solicitations, websites for both of his companies, and a network of self-described “ambassadors” who distributed promotional materials Crews personally approved.
“Crews used his connections in the African-American community to solicit investors, many of whom were non-accredited, and also recruited investors through relationships at church and a Bible study,” the SEC wrote.
Misrepresentations tied to stem cell claims and church affiliations
The SEC propounded that Crews exploited investors who were not accredited and lacked financial safeguards. They were told that advanced stem cell treatments and tangible assets such as gold-backed Stemy Coin.
Crews insisted that Stem Biotech had operational laboratories, real medical products, and ongoing partnerships with healthcare professionals and biotech firms.
In reality, the SEC says none of these representations were true. “Crews and his entities had no existing stem cell technology, products, or operations,” the complaint stated. “There was no partnership with the claimed entities.”
False affiliations and misleading promotional material
Crews reportedly used the names of professionals and companies without consent to improve the credibility of his operations. For instance, the complaint cites his unauthorized use of the name of Dr. Shah and the company Alexandros, falsely presenting them as affiliated with Stem Biotech.
In May 2020, Dr. Shah formally requested that Crews cease using his and Alexandros’ names in any business promotion.
Similar uncertified uses were documented involving BHI, another company whose branding and intellectual property were allegedly used to promote Stemy Coin.
In January 2021, BHI issued a cease and desist letter to Crews demanding that he stop using its name, logo, and product references in solicitations.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
