NovaTech FX rolls out securities fraud pseudo-compliance
In response to a Californian securities fraud cease and desist issued last week, NovaTech FX has rolled out securities fraud pseudo-compliance.
In an “urgent request” sent out to NovaTech FX investors over the past 24 hours, the Ponzi scheme is demanding they
go through your posts on Social media (Facebook, Instagram, Twitter, YouTube, etc) and ensure that any/all posts with an ROI or ANY advertisement, solicitations that have NOVATECH’s name or logo on it… gets DELETED IMMEDIATELY & without hesitation!
If you see anyone doing so, please kindly communicate/inform them accordingly. Not deleting/ removing such posts may lead to having their NOVATECH account closed.
The problem of course is that, regardless of what you call your fraudulent investment scheme, it’s still a fraudulent investment scheme. Hence the term “pseudo-compliance”.
MLM related securities fraud in the US starts with the identification of an investment contract. This is done via the Howey Test.
Under the Howey Test, an investment contract exists if there is an “investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.”
With respect to NovaTech FX, it itself is the “common enterprise”. Affiliates invest on the promise of a weekly ROI, which satisfies “a reasonable expectation of profits”.
NovaTech FX represents passive returns are funded via trading, satisfying “profits to be derived via the efforts of others”.
And so having satisfied all prongs of the Howey Test, NovaTech FX’s MLM opportunity constitutes a securities offering under US law.
This shouldn’t come as a surprise. BehindMLM identified NovaTech FX as an unregistered securities offering in 2019.
We maintain that any MLM company committing securities fraud does so because it’s a Ponzi scheme.
Getting back to regulation, the existence of an investment contract means NovaTech FX has to register with the SEC and be filing periodic audited financial reports.
They aren’t – and this is likely what will prompt an SEC lawsuit at some point.
Historically when states start issuing securities fraud cease and desists the SEC isn’t far behind. When the federal regulator pulls the trigger however can’t be predicted with accuracy. Ditto whether the DOJ will combo criminal charges.
Certainly there has been a recent trend of US authorities going not only after company owners, but also top promoters of MLM Ponzi schemes.
While investors will scramble to meet NovaTech FX’s “delete the evidence” directive, it won’t have any effect on pending regulatory proceedings.
The SEC and DOJ have never lost a securities fraud related case because evidence was deleted and “this is not financial advice”.
What will prompt investors to comply with NovaTech FX’s demands is the threat of losing their investment account(s). The irony being that it’s of course already too late to withdraw.
NovaTech FX investors familiar with Ponzi scheme end-games are already advising others to “diversify”
“Diversify” is scam-speak for “withdraw everything”.
At time of publication NovaTech FX has not publicly addressed California’s securities fraud cease and desist. Pending any additional updates, we’ll keep you posted.
Hope Cynthia ends up in prison and not Dubai….
According to this dude, it’s business as usual as the notification is fake. If Novatech gets blocked then the advice is to get on a VPN and get around it.
youtu.be/zb4XPAeWpU4?t=261
Looks like Cynthia and Eddy Pation sold their home back in May…
Hat tip- Jeremy in the Now What fb group…
This is an interesting development. I’m going to hold off reporting though till we get confirmation the Petions are still in the US.
They could have just moved.
I’m guessing they sold as an attempt to hide the fact that the flash house was bought with money stolen from AWS Mining….or they moved to Dubai…lol.
I wouldn’t be surprised if the Petions turn up offshore. It’s pretty obvious federal NovaTech FX investigation(s) is/are underway.
Wonder how many other fraud warnings are out there that just haven’t been noticed yet. The new one from Alberta is from October and it just got reported on for the first time yesterday.
That Alberta one would have gone up sometime after Nov 1st. Or I would have seen it at end of Oct.
I’m on unofficial break till the world cup is over so haven’t checked end of Nov yet.
Not true…
It was reported on by Oz on 29th October….
https://behindmlm.com/companies/novatech-fx-securities-fraud-warning-from-canada-bc/
Alberta != BC.
I’ll get the reg check done today and verify.
Warning was from BC equivalent of the SEC…
Alberta borders BC…
The BC one was by the British Columbia Securities Commission, and the Alberta one was by the Alberta Securities Commission. Alberta only put NovaTech on their ‘Investment Caution List’, but still counts as something.
They are getting rather nervous in the “Largest novatech group” on fb…
Multiple posts today… Among the rediculous claims…
They claiming that behindmlm is writing lots of garbage cos it makes them money!!!..
Posting the weekly % is “enticement” and will lead to novatech being shut down….lol…
HaterZ are “fabricating information” because novatech is “a threat to other platforms”…
The cease & Desist is because of members posting the weekly %…lol
So much for Cynthia’s claim that she got a 700 page report from the FBI saying that novatech is all kosher….but of course she burned it…lmao…
Full copy of the posts are in the Now What group….
Ah, so NovaTech FX has entered the “haterz” stage of Ponzi denial. Am I working for a competitor yet?
edit: According to the “leadership calls”, yes I am. Whee!
The next stage of Ponzi denial is “the government doesn’t understand”. I suppose that will come out if a second state C&D comes out or the SEC moves.
Which means novatech is done!!…lol
Gary Rabu should go to prison. This guy promotes so many scams and has suckered so many people into Novatech.
Don’t let him hide and please help expose him. I have so many friends that have lost their life savings to him.
“UIGI Strategy from Rabu Gary”: youtube.com/watch?v=_WiLKL-GPVA
You guys are making up all this stuff. I did my own research, and most your claims are invalid.
Canada has issued a ban on Canadians from being in Novatech, so you’re right on that. But, it’s Canada.
California is trying to do the same. Has nothing to do with Novatech, though. It’s about crypto currencies. (Ozedit: snip, see below)
Canadian provinces issued securities fraud warnings. California has also issued a securities fraud warning.
Whether NovaTech FX commits securities fraud with cryptocurrency or any other medium is neither here nor there.
Securities law is the same in any country that regulates financial markets. Either you’re registered with financial regulators and providing audited financial reports, or you’re committing securities fraud.
In the US, state-level securities law is effectively the same as the Securities and Exchange Act at the federal level.
You can ask yourself why NovaTech FX opts to commit securities fraud. (hint: starts with “P”)
You can deny the obvious all you like but the novatech ponzi has imploded with many members reporting withdraw problems from trading accounts..
Your money is gone and there are no refunds…. and attacking us will not change anything cos your money will still be gone…
You did your own reseaerch? Seriously? Please enlighten all of us on just what “research” you really did that proves the review is invalid.
You can list it with proof that proves you’re right and we are wrong, right?
Here’s your moment for glory. So show how all of us got this all wrong.