Cemtrex, Telidyne Founder Settles SEC Claims of Fraud and Theft

The founder of Cemtrex Inc. and Telidyne Inc. agreed to pay $1.2 million to settle claims by the U.S. Securities and Exchange Commission that he defrauded shareholders and misappropriated $7.3 million in company funds.

Aron Govil of Jacksonville, Florida, agreed to give up $626,782 plus interest, pay a $620,000 fine and accept an order barring him from issuing penny stocks or serving as a corporate officer or director, the SEC said Monday in a statement. Govil neither admitted nor denied the allegations, the regulator said.

The SEC sued Govil, claiming that from 2016 to 2018 he siphoned $7.3 million ...