A Prince George’s County Circuit Court has upheld a Maryland Securities Commissioner order permanently banning Stanley G. Richards from the state’s securities industry and imposing a $5.92 million fine in connection with the NovaTech investment scheme, according to Maryland Attorney General Anthony G. Brown’s office. The Securities Commissioner’s March final order found that Richards violated multiple provisions of the Maryland Securities Act.
According to the Attorney General’s Office, NovaTech presented itself as a cryptocurrency and foreign currency trading platform and told investors their money would be used for trading to generate returns. Richards began promoting NovaTech investments to Maryland residents in 2021 and acted as an investment adviser despite not being registered as one in Maryland.
The Attorney General’s Office said approximately 3,000 Maryland residents invested in NovaTech and that company records show Maryland investors lost approximately $37 million. At least 148 Maryland residents allegedly invested as a result of Richards’ promotion of NovaTech through YouTube, online video calls and social media.
Richards eventually reached the title of senior director within NovaTech, a designation the company gave to people who offered and sold at least $25 million of its securities, according to the state. The Securities Division initially sought to permanently bar Richards from the securities and investment advisory business as part of its enforcement action.
“Marylanders and their families were swindled out of millions of dollars by this aggressively promoted and unlawful pyramid scheme,” Brown said in announcing the court decision.
