Maryland AG Secures $5.9M Fine and Lifetime Securities Ban for Prince George’s County Promoter in NovaTech Pyramid Scheme
I just reviewed the latest consumer protection bulletin from the Office of the Attorney General of Maryland, and it serves as a critical warning for local investors.
In it, Attorney General Anthony G. Brown’s Securities Division announced that the Circuit Court for Prince George’s County has upheld a permanent industry ban and a $5,920,000 fine against local promoter Stanley G. Richards for his role in the worldwide cryptocurrency and foreign exchange pyramid scheme known as NovaTech.
Here are the main takeaways:
* Court Upholds Major Financial Penalties: The Circuit Court for Prince George’s County affirmed the Maryland Securities Commissioner’s Final Order after oral arguments, permanently barring Stanley G. Richards from the state’s securities industry. Along with the lifetime ban, Richards was assessed a $5.92 million civil penalty for illegally soliciting and selling fraudulent investment contracts across Maryland.
* Massive Financial Losses for Maryland Families: While pitching NovaTech packages under the guise of an automated crypto and Forex trading platform, Richards recruited at least 148 Maryland victims directly through YouTube videos, social media channels, and virtual conference calls. Statewide, approximately 3,000 Maryland residents invested in the broader scheme, resulting in an estimated $37 million in lost savings, while global victims deposited upwards of $1 billion into the platform.
* Unlicensed Investment Advisory Activity: Despite acting as a key investment adviser and climbing to the rank of "senior director" by directing more than $25 million in sales, Richards was never licensed or registered to offer securities or financial advice in Maryland or any other jurisdiction. Regulatory findings against the platform and its operators are documented in the Maryland Securities Division Final Order and the related Order to Show Cause.
* Continued Accountability for Predatory Scams: The state’s action against Richards builds on a prior Final Order issued in July 2025 against NovaTech and its primary founders, which can be reviewed in detail via the NovaTech Regulatory Order. Attorney General Brown emphasized that state enforcement teams will continue aggressively pursuing con artists who exploit social networks to siphon away families' hard-earned retirement and household savings.
Why This Matters: Affinity fraud and social media investment scams present a growing threat to families across Greater Baltimore and throughout Maryland. Promoters often present themselves as trusted community members, utilizing group video calls, church circles, and polished YouTube channels to make complex crypto or currency programs sound completely risk-free. When these multi-level pyramid structures collapse, everyday households lose college funds, emergency savings, and retirement nests, leaving little chance of recovering stolen deposits through standard bankruptcy or civil courts. Understanding how predatory promoters operate helps our local communities recognize red flags before hard-earned wealth disappears.
Baltimore Mom Tip: Before committing your family's savings to any alternative asset, digital token, or multi-level investment opportunity, always verify credentials independently. Anyone offering to manage investments, sell securities packages, or provide financial advice in Maryland must be formally registered with state or federal regulators. You can look up any broker, firm, or financial adviser for free on FINRA’s BrokerCheck or by calling the Maryland Securities Division directly at 410-576-6360.
Because modern investment scams often begin with compromised logins, fake social media investment groups, or phishing messages, protecting your family’s online accounts and personal identity is essential. To monitor your credit reports and receive instant alerts if your passwords or Social Security number leak onto the dark web, check out identity monitoring platforms like Aura or LifeLock. To read the state's full legal announcement or report suspicious financial activity in your area, visit the Office of the Attorney General of Maryland today.
