SEC v. Nova Labs, Inc., No. LR-26229, Southern District of New York (Jan. 18, 2025) — Press Release
raw: Nova Labs, Inc.
Nova Labs, Inc., No. 1:25-CV-00539 (S.D.N.Y. Jan. 18, 2025)
summary
Nova Labs, Inc. was charged by the SEC for conducting unregistered crypto asset offerings and defrauding investors through false partnership claims.
paragraph
Nova Labs, Inc. faces charges for violating the Securities Act of 1933 and the Securities Exchange Act of 1934. The company allegedly conducted unregistered offerings via its 'Hotspots' and 'Discovery Mapping' programs from April 2019 to the present. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains, pre-judgment interest, and civil penalties.
narrative
The SEC charged Nova Labs, Inc. with conducting unregistered offerings of crypto assets and defrauding investors through its 'Hotspots' and 'Discovery Mapping' programs. Since April 2019, the company allegedly sold electronic devices and data-exchange programs that functioned as unregistered securities. To attract investors, Nova Labs made materially false statements claiming that major companies like Lime, Nestlé, and Salesforce were using its wireless network. The complaint asserts violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains, pre-judgment interest, and civil penalties. The litigation is being led by a team from the SEC’s New York Regional Office in the Southern District of New York.
Classified crypto-securities(confidence 100%). EDGAR detection: forms 1-A/S-1/8-K· recall 43% / precision 2%. detection rule →
Statutes
Sections 5(a), 5(c), and 17(a)(2) of the Securities ActSections 5(a), 5(c), and 17(a)(2) of the Securities ActSections 5(a), 5(c), and 17(a)(2) of the Securities ActSections 5(a), 5(c), and 17(a)(2) of the Securities ActSection 10(b) and Rule 10b-5 of the Securities Exchange ActSection 10(b) and Rule 10b-5 of the Securities Exchange ActSection 10(b) and Rule 10b-5 of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionNova Labs, Inc.
Keywords
nova labsnovalabssecuritiessecurities exchangeexchange commissioncrypto assetsincexchangesecjanuary securitiescommission novalabs madelabs cryptocommission
Exhibits & Attached Documents (1)
Extracted insights
Entities 11
- person Christopher Colorado
- person douglas smith
- person emmy e. rush
- person jack kaufman
- person judith weinstock
- person kim han
- company nova labs, inc.
- person peter mancuso
- agency Securities and Exchange Commission
- person sheldon l. pollock
- company unregistered offerings of crypto assets as securities
Triples 16
- Securities And Exchange Commission Charges Nova Labs, Inc. with Fraud and Registration Violations
- Nova Labs, Inc. Conducted Unregistered Offerings Of Crypto Assets As Securities
- Nova Labs, Inc. Defrauded Investors
- Securities And Exchange Commission Charges Nova Labs With Violating Sections 5(a), 5(c), And 17(a)(2) Of The Securities Act Of 1933, And Section 10(b) And Rule 10b-5 Of The Securities Exchange Act Of 1934
- Securities And Exchange Commission Seeks Permanent And Conduct-Based Injunctions, Disgorgement Of Ill-Gotten Gains, Pre-Judgment Interest, And Civil Penalties
- Emmy E. Rush Conducted The Investigation
- Christopher Colorado Conducted The Investigation
- Kim Han Conducted The Investigation
- Douglas Smith Conducted The Investigation
- Judith Weinstock Supervised The Investigation
- Sheldon L. Pollock Supervised The Investigation
- Chief Litigation Counsel Jorge Tenreiro Supervised The Investigation
- Ms. Rush Led The Litigation
- Mr. Colorado Led The Litigation
- Peter Mancuso Led The Litigation
- Jack Kaufman Supervised The Litigation
PDF (from attached: complaint)
Text layers
Extracted body text (1,843c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26229 / January 18, 2025 Securities and Exchange Commission v. Nova Labs, Inc., No. 1:25-CV-00539 (S.D.N.Y. filed Jan. 17, 2025) SEC Charges Nova Labs, Inc. with Fraud and Registration Violations On January 17, 2025, the Securities and Exchange Commission charged Nova Labs, Inc. (“Nova Labs”) with allegedly conducting unregistered offerings of crypto assets as securities and defrauding investors. According to the SEC’s complaint, from April 2019 to the present, Nova Labs made unregistered offers and sales of securities when it offered and sold electronic devices called “Hotspots” that mined Nova Labs’ crypto assets and “Discovery Mapping,” a program that allows users to exchange their private data for Nova Labs’ crypto assets. Nova Labs also allegedly made materially false and misleading statements to prospective investors about prominent companies, such as Lime, Nestlé, and Salesforce, purportedly using, being current users of, or relying on the Nova Labs’ wireless network when those companies were not in fact using the network. The SEC’s complaint charges Nova Labs with violating Sections 5(a), 5(c), and 17(a)(2) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC seeks permanent and conduct-based injunctions, disgorgement of ill-gotten gains, pre-judgment interest, and civil penalties. The investigation was conducted by Emmy E. Rush, Christopher Colorado, Kim Han, and Douglas Smith in the SEC’s New York Regional Office. The investigation was supervised by Judith Weinstock and Sheldon L. Pollock of the New York Regional Office, as well as Chief Litigation Counsel Jorge Tenreiro. The litigation will be led by Ms. Rush, Mr. Colorado, and Peter Mancuso, and will be supervised by Jack Kaufman.
OCR text (1,843c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26229 / January 18, 2025 Securities and Exchange Commission v. Nova Labs, Inc., No. 1:25-CV-00539 (S.D.N.Y. filed Jan. 17, 2025) SEC Charges Nova Labs, Inc. with Fraud and Registration Violations On January 17, 2025, the Securities and Exchange Commission charged Nova Labs, Inc. (“Nova Labs”) with allegedly conducting unregistered offerings of crypto assets as securities and defrauding investors. According to the SEC’s complaint, from April 2019 to the present, Nova Labs made unregistered offers and sales of securities when it offered and sold electronic devices called “Hotspots” that mined Nova Labs’ crypto assets and “Discovery Mapping,” a program that allows users to exchange their private data for Nova Labs’ crypto assets. Nova Labs also allegedly made materially false and misleading statements to prospective investors about prominent companies, such as Lime, Nestlé, and Salesforce, purportedly using, being current users of, or relying on the Nova Labs’ wireless network when those companies were not in fact using the network. The SEC’s complaint charges Nova Labs with violating Sections 5(a), 5(c), and 17(a)(2) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC seeks permanent and conduct-based injunctions, disgorgement of ill-gotten gains, pre-judgment interest, and civil penalties. The investigation was conducted by Emmy E. Rush, Christopher Colorado, Kim Han, and Douglas Smith in the SEC’s New York Regional Office. The investigation was supervised by Judith Weinstock and Sheldon L. Pollock of the New York Regional Office, as well as Chief Litigation Counsel Jorge Tenreiro. The litigation will be led by Ms. Rush, Mr. Colorado, and Peter Mancuso, and will be supervised by Jack Kaufman.