SEC Files Fraud Charges Against Florida Man in Crypto App Scam

SEC Files Fraud Charges Against Florida Man in Crypto App Scam

The SEC has charged a Jacksonville, Florida man with defrauding investors in two companies he controlled, including one that the SEC says fraudulently claimed to be developing a crypto mobile payments application.

Aron Govil, the CEO of mobile application developer Telidyne, allegedly told investors between April 2019 and May 2020 that the company had developed the “Teli App” that allowed users to transact in cryptocurrencies via mobile phone, and had also started developing an app that detected COVID-19. According to the SEC’s complaint, the “Teli App” was not functional and the company had not started work on the COVID-19 detection app at the time charges were filed.

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

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

Govil has consented to the entry of a final judgement that imposes several penalties on him, including the disgorgement of $626,782 plus interest, and a civil penalty of $620,000. Govil may also be subject to additional penalties and disgorgement if the court deems them appropriate.