Florida man Aron Govil agrees $1.2M settlement in digital currency scam case

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A Florida man, Aron Govil of Jacksonville has agreed to pay $1.2 million to settle the fraud charges against him, after the U.S. Securities and Exchange Commission  accused him of scamming investors via the two companies he owned.

A Florida man, Aron Govil of Jacksonville has agreed to pay $1.2 million to settle the fraud charges against him, after the U.S. Securities and Exchange Commission  accused him of scamming investors via the two companies he owned.

One of the companies claimed to let users transact in digital currencies from their mobile phones while also developing an app that could detect COVID-19.

The U.S. Securities and Exchange Commission  filed charges against Aron Govil accusing him of defrauding investors in his two companies – Telidyne Inc. and Cemtrex Inc.

In the suit, filed at the Southern District of New York, the watchdog accused Aron Govil for making material misrepresentations to investors regarding Telidyne’s products.

Between April 2019 and May 2020, Govil reportedly told investors that Telidyne had developed the Teli App which allowed its users to transact digital currencies from their mobile phones. It also claimed to be working on an app that could detect COVID-19.

The Securities and Exchange Commission claims these statements false because the Teli App did not have the digital currency functionality.

In his other company, Cemtrex, Aron Govil allegedly misappropriated over $7 million of users funds for personal expenses. He also secretly sold Cemtrex stocks while paying off stock promoters to recommend it to unsuspecting investors as well as insider trading.

In addition, he did not file with the Securities and Exchange Commission any of the required disclosures in connection to his Cemtrex trading.

“Aron Govil allegedly flooded the market with paid for buy recommendations for Cemtrex stock and made false claims about Telidyne’s development of mobile apps that would facilitate cryptocurrency transactions and help combat the coronavirus. Investors should be wary of online recommendations from unverified sources that appear to capitalize on the latest market trends and seem too good to be true.”

Richard Best, Director of the Securities and Exchange Commission, New York regional office

Govil has been charged with violating anti-fraud provisions as well as a rule that requires corporate directors to disclose transactions on their company stock.

Aron Govil settles out of court

Without admitting or denying the allegations, Govil agreed to pay $626,782 disgorgement of funds plus a prejudgment amount standing at $76,693. He also agreed to pay a civil penalty amounting to $620,000. The judgment also allows the court to order any additional disgorgement or penalty against him if proven.

Dylan Leighton

Dylan Leighton

Dylan Leighton is an composer, music producer, sound designer and mix engineer from the United Kingdom. Making music for over 40 years, he creates music for corporate clients, film and video, and his own personal enjoyment. Writing under the artist name Kalliste, he has composed in just about every genre, from hip-hop to funk to classical.

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