Two Crypto Companies Shut Down By SEC To Mislead And Fraud Investors
The U.S Security Commission Exchange (SEC) issued a fine against a single person who owns two companies and shut down both companies for misleading people & promoting their stocks inappropriately.
On 19 July, The U.S Securities & Exchange Commission announced charges against a person whose name is Aron Govil. Aron Govil owns two companies and also he was CEO of both company. The name of his two companies are Cemtrex Inc. and Telidyne Inc. Charges by SEC against Govil is only to mislead their Investors and doing clean fraud.
According to the published report by SEC against Aron Govil, This guy claimed that his company is working on a application “teli app” which will allow their users crypto transaction through mobile and that will not only work for crypto transaction but also facilitate their users to detect Covid-19 deasses.
But in investigation, SEC found that there is no such Development work by the Company on application goin on and that app is simple and has no payment transactions related functionality and also there is nothing about Covid-19 detection feature.
And also at another side, investigation revealed that Govil was selling his company’s stock “Cemtrex stocks” blindly .He was giving money to the promoters to promote his stocks in between retail traders to invest.
Aron Govil collected around $7 million through all such fraudulent activities from April 2016 and January 2018. And also he was using all the money for his personal needs instead of development of company products & services.
Overall, the Security & Exchange Commission found that Mr. Aron Govil was doing pure scam & fraud and also he was misleading people through wrong information about their products, services & company.