SEC Files Fraud Charges Against Florida Man in Crypto App Scam

Aron Govil of Jacksonville is also being charged with scalping and insider trading in a related case.

AccessTimeIconJul 19, 2021 at 7:00 p.m. UTC
Updated Sep 14, 2021 at 1:27 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

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. 

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

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.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.