The U.S. Securities and Exchange Commission has charged a Jacksonville, Fla., 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, 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 conduct transactions in cryptocurrencies on a mobile phone, and had also started to develop an app that detected COVID-19. According to the SEC’s complaint, the “Teli App” wasn't functional and the company hadn't started work on the COVID-19 detection app.
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, and engaged in illegal stock scalping by secretly selling Cemtrex stock while paying stock promoters to recommend it. It also charged him with insider trading.
Govil has agreed to pay a $626,782 disgorgement of funds 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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.