PRINCE GEORGE'S COUNTY, MD — A $5.9 million fine has been imposed upon a Prince George's County man after the Circuit Court for Prince George's County upheld a final order.
Stanley G. Richards also has been permanently banned from the Maryland securities industry.
According to prosecutors, Richards was involved in an unlawful pyramid scheme called NovaTech.
"Marylanders and their families were swindled out of millions of dollars by this aggressively promoted and unlawful pyramid scheme," said Attorney General Anthony G. Brown. "The securities division will always hold accountable con artists who target Marylanders' hard-earned savings."
NovaTech was a global pyramid scheme that promoted itself as a crypto asset and Forex (foreign currency) trading platform. NovaTech claimed it would use investor funds to engage in crypto and Forex trading, which in turn would generate returns for clients who invested in NovaTech Packages.
In 2021, Richards started promoting an investment scam by offering and selling investment contracts to Maryland investors for and on behalf of NovaTech. Richards acted as an investment adviser in Maryland for NovaTech, although he had never been registered as an investment adviser in Maryland or anywhere else.
Richards worked his way up through the NovaTech hierarchy and held the title of senior director, which NovaTech gave to anyone who offered and sold at least $25,000,000 of the NovaTech security.
Approximately 3,000 Maryland residents invested in NovaTech. At least 148 Maryland residents fell victim to the NovaTech scam as a result of Richards' aggressive promotion of the NovaTech securities on YouTube, online video conference calls and social media.
According to NovaTech records, Maryland investors lost approximately $37,000,000. Worldwide, investors deposited between $600 million and $1 billion worth of cryptocurrency with NovaTech beginning as early as 2019 through 2023.
The Circuit Court's decision came after oral argument where Richards requested a judicial review of the Maryland Securities Commissioner's Final Order.
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