SEC Brings Fraud Charges Against Florida Man in Crypto App Scam

[ad_1]

The United States Securities and Exchange Commission accused a Jacksonville, Florida man of defrauding investors in two companies he controlled, including one that the SEC said fraudulently claimed to develop a cryptographic mobile payment.

Aron Govil, CEO of mobile app developer Telidyne, reportedly told investors between April 2019 and May 2020 that the company developed the Teli app which allowed users to transact in cryptocurrency on a mobile phone, and had also started to develop an application that detects COVID-19[FEMININESAccordingtothecomplaintoftheSECtheapplicationwasnotfunctionalandthecompanyhadnotstartedworkingonthedetectionapplicationCOVID-19[FEMININESelonlaplaintedelaSECl’applicationTelin’étaitpasfonctionnelleetlasociétén’avaitpascommencéàtravaillersurl’applicationdedétectionCOVID-19

Govil is also charged with separate crimes related to his management of technology company Cemtrex Inc. The complaint alleges that Govil embezzled over $ 7 million of Cemtrex investor funds between April 2016 and January 2018 and committed in an illegal stock scalping by secretly selling Cemtrex stock while paying stock promoters to recommend it. He also charged him with insider trading.

The charges against Govil are part of the SEC’s crackdown on crypto fraud.

Govil agreed to pay a cash back of $ 626,782 plus interest and a civil penalty of $ 620,000. Govil may also be subject to additional penalties and restitution if the court deems it appropriate.

[ad_2]