NovaTech FX securities fraud cease & desist from California
NovaTech FX has been issued a securities fraud cease and desist by California’s Department of Financial Protection & Innovation (DFPI).
The notice marks the first regulatory action against NovaTech FX by a US regulator.
DFPI’s November 22nd cease and desist applies to:
- NovaTech LTD (St. Vincent & Grenadines shell company);
- NovaTech Advisors LLC (Florida company);
- NovaPay LLC (Florida company);
- NovaTrading OU (Estonian shell company);
- Cynthia Petion (US-based NovaTech FX co-founder and CEO); and
- Eddy Petion (US-based NovaTech FX co-founder)
Following an internal investigation, DFPI concluded NovaTech FX is committing securities fraud.
The Packages offered by NovaTech, Cynthia Petion, and Eddy Petion were securities that were neither qualified nor exempt from the qualification requirement under the CSL.
The Department has not issued a permit or other form of qualification authorizing NovaTech, Cynthia Petion, or Eddy Petion to sell these securities in California.
In connection with the offer or sale of these securities, NovaTech, Cynthia Petion, and Eddy Petion made, or caused to be made, untrue statements of material fact and material omissions to investors and potential investors, including but not limited to the following:
a. falsely representing that NovaTech is a registered hedge fund in the United States;
b. falsely representing that NovaTech is a registered investment adviser;
c. falsely representing that NovaTech is a registered broker;
d. failing to disclose that the offer or sale of NovaTech’s securities was not qualified in California;
e. failing to provide any qualifications to substantiate claims that investors’ funds are managed and traded by experienced traders;
f. failing to disclose that in March 2011, Cynthia Petion and Eddy Petion filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the Eastern District of New York;
g. failing to disclose that in August 2019, a debt buyer sued Cynthia Petion in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, Civil Division, for breach of contract and unjust enrichment, alleging that Cynthia Petion had failed and/or refused to repay a loan;
h. failing to disclose that in July 2018, a mortgage lender sued Eddy Petion and Cynthia Petion in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, Civil Division, in an action to foreclose a defaulted mortgage on residential real property held by Eddy Petion and Cynthia Petion;
i. failing to disclose that in April 2018, a credit card issuer sued Cynthia Petion in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, Civil Division, for account stated and unjust enrichment.
A judgment was entered against Cynthia Petion in the amount of $11,776.55; and
j. failing to disclose that in October 2017, a credit card issuer sued Eddy Petion in the County Court in and for Palm Beach County, Florida, for account stated. A judgment was entered against Eddy Petion in the amount of $4,740.56.
DFPI goes to confirm that none of the NovaTech FX companies, or the Petions, are registered to offer securities in California.
Pursuant to Corporations Code section 25532, Nova Tech Ltd. a/k/a NovaTech, Ltd., NovaTech Advisors, LLC, NovaPay, LLC, NovaTrading OÜ, Cynthia Petion, and Eddy Petion are hereby ordered to desist and refrain from the further offer or sale of securities in California, including but not limited to investment contracts known as Packages, unless and until the qualification requirements of the CSL have been met.
Pursuant to Corporations Code section 25403, any person who controls or induces another person to violate a provision of the Corporate Securities Law of 1968, or any person who provides substantial assistance to another person in violation of the Corporate Securities Law of 1968, shall be liable for the violations.
DFPI identifies NovaTech FX’s business model as a High Yield Investment Program (HYIP).
NovaTech was luring investors into what is known as a High Yield Investment Program (HYIP).
HYIPs are unregistered investments typically run by unlicensed individuals – and are often frauds. The hallmark of an HYIP scam is the promise of high returns on an annual (or even monthly, weekly, or daily) basis at little or no risk to the investor.
HYIPs are MLM underbelly code for “Ponzi scheme”. BehindMLM reviewed NovaTech FX in 2019, also concluding it was a Ponzi scheme.
DFPI’s cease and desist all but confirms NovaTech FX is likely under investigation at the federal level.
Securities in the US are regulated by the SEC, with which NovaTech FX is also not registered.
SimilarWeb tracked over 2.5 million visits to NovaTech FX’s website in October 2022. ~66% of NovaTech FX’s website traffic comes from the US.
Last month Cynthia Petion endorsed the claim NovaTech FX had been audited and approved by the FBI.
When the inevitable NovaTech FX SEC fraud lawsuit drops, it’ll be interesting to see whether the DOJ files parallel wire fraud and money laundering charges.
In addition to California, NovaTech FX has received securities fraud notices from Russia and British Columbia, Canada.
A warning from a US government is more meaningful than from anywhere else like the one from Russia.
Following for comments.
I get all excited when I read an article like this. I can’t imagine everyone must be feeling who has invested in this company right now.
They will be scrambling to log into the system, hoping to get one more withdraw before the company runs out of money or the federal government decide to seize the website domain names and shut them down.
The problem is, where will they hang out next? What concert scheme will they follow now? How are they explain it to their friends or family that they were wrong?
Spartacus, the victory is ours!
Good to see. How with the cult members defend this one?
Presumably something along these lines… “it’s just the state are trying to stop normal people from being financially free”.
This is significant….The Next Cease and Desist will come from the SEC and then its lights out.
I suspect we will see Eddy and Cynthia take their millions and flee to a country with no extradition treaty with the USA.
Got to be pretty dumb to think you can do a HYIP and live in the US these days.
Added DFPI cease and desist notice link.
Could have sworn I added it before publishing but here we are.
I believe even Dubai route is closing since new laws came in
There’s very few countries remaining, perhaps NK.
Great news and it couldn’t come soon enough. Hopefully it leads to more.
Oz, any recollection on how long it took the SEC to take action after a US state issued a cease and desist in cases like Zeek, etc.?
It was pretty quick. Inside of 2-3 months from memory.
No indication of what will happen with NovaTech but at least we know there’s a federal US investigation now.
Danny you ‘get all excited’ when you see hard working people losing their saving and dreams? (Ozedit: snip, see below)
A Ponzi scheme is neither savings or dreams. A Ponzi scheme is a scam in which the majority of investors are guaranteed to lose money.
BehindMLM’s coverage of NovaTech FX is littered with gloating fucks. Schadenfreude is real.
The whole crypto meltdown (RIP BlockFI) is one big schadenfreude popcorn fest. You aren’t going to make it because you got scammed. Few understand this.
‘A Ponzi scheme is neither saving nor dreams’? Maybe to the FOUNDERS- but all the INVESTORS put in their savings DUH. If I have to explain that, we’re not the same intellectual level to even have a coherent debate.
Bring your stolen millions to South Africa or Namibia.
As long as you’re white and rich, you’re safe.
Ask Coenie Botha. Or the MTI crowd. Or the Tigon perpetrators, the Krion lot who got 20 years to hide the cash whilst on trial and now qualify for release, the Leisuirenet couple of twits who served a couple of years at most, the Fidentia scammers who are now out of prison with no funds having been recovered, etc, etc
If you fell for an obvious Ponzi scam, then you are correct.
And a lot of them knew exactly what they were getting into including me.
After warning people of the red flags and telling them it’s a ponzi scheme, even though they didn’t listen, I went ahead and joined this past October.
Now if I lose some of my money, I have no one to blame but myself.
All the Novatech members had to have been in other deals they also said were not ponzi schemes and those crashed also.
So they think Novatech is finally the first legit legal investment? They said the same about Bitclub and Zeek and many others.
When this collapses they will move onto the next one and tell all their friends that this one is for real. They are all scams and most everyone will lose their investment.
Novatech Compliance Department[sic] have ordered that the gate be shut now that the horse has bolted…
I’m sure the SEC already has all the screenshots needed to shut this ponzi down..
So you know it’s a ponzi scheme yet you joined anyway in the hope of stealing some money from others…smh…
On the upside, since it takes roughly 7-8 months to break even it’s good to know that you will be one of the 90% of members who lose money here… That’s called karma… lol.
There was strong indications that it was a ponzi scheme. Then I watched a video of Cynthia explaining it that convinced me that they weren’t breaking the law.
I don’t have to wait 7-8 months to withdraw my money. I got until January which is 3 months to do so without incurring a 15% withdrawal fee.
I’m not stealing anyone’s money. Like I said, a lot of people knew what they were getting into.
I may suspect that they’re not really investing in anything but I don’t have any proof of it. So do I really know it’s a ponzi scheme? No.
@Okosh
Deleting the evidence has never been an effective securities fraud defense strategy.
@Pipo
1. Anything withdrawn from a Ponzi is scheme is theft of someone else’s money.
2. MLM + securities fraud = Ponzi scheme. Every time. No exceptions.
Nope…never…lol
@OZ
Then we’re stealing from each other. If anyone is guilty of stealing it would be the people perpetrating the fraud, the Petions.
I don’t recruit anyone and I don’t advise anyone to join. I joined at my own risk.
Just like crypto currency. It doesn’t make sense having any monetary value but as long as some people think it does I bought some coins at my own risk.
I didn’t buy that 700 page FBI report claim by the way. That was an insult to anyone’s intelligence.
Specifically, older NovaTech FX investors are stealing from newer investors.
Both the operators of Ponzi schemes and net-winners are stealing from the majority of investors. Both are committing securities fraud.
Whether you recruit the victims you’re stealing from is neither here nor there.
Ditto the risk waffle, it’s irrelevant to NovaTech FX being a Ponzi scheme, withdrawals = theft and the majority of NovaTech FX investors taking a loss when it collapses.
Leave the “this is not financial advice” bullshit on social media kthx.
My withdrawals=slowly getting back what I put in.
What you “put in” was stolen by earlier NovaTech FX investors. Now you’re stealing from those who invested after you.
This is the reality of every MLM Ponzi scheme.
I’m not stealing until I surpass my initial investment. I’m not going to feel bad getting my money back little by little.
What do you expect me to do? Stop withdrawing and risk the chance of losing everything because I’m “stealing”?
Anything you withdraw out of a Ponzi scheme is stealing someone else’s money.
Your initial investment is gone. There’s no getting it back.
Beyond refusing to acknowledge you’re in a Ponzi scheme and stealing money, I don’t care what you do.
Yeah ok OZ I’ll just stop “stealing” and let my money go bye bye lol. What world are you living in?
Your money is already gone. Ponzi math is not complicated.
I will reiterate again that I don’t care what you do.
You’re a bottom feeder…a sucker who joined an imploding ponzi scheme…
At this stage of the game you’ll be lucky to see a single withdraw…
What are the damages? NovaTech has been paying people every single week as they said they would. Why doesn’t (Ozedit: derails removed)
1. The damages are NovaTech FX is a Ponzi scheme in which the majority of participants are guaranteed to lose money.
2. Securities fraud is illegal.
3. Numbers on a screen each week != getting paid.
4. How much NovaTech FX investors have lost will eventually come out in an SEC Complaint.
@#32
You don’t know what you’re talking about. I withdraw every “bonus” every week. Even this week. The California cease and desist only apply to California and someone will get in trouble only if they’re caught in person promoting Novatech. I’ll see through January and I will get all my “lost” money back.
Securities law in California is the same as federal Securities law across the US.
No state in the US has different securities laws to the federal level.
False. NovaTech FX itself is committing securities fraud.
You also can’t undo securities fraud. Once the act is committed and the state-level cease and desists start rolling in, it’s over.
You somehow believe the load of BS she told you in the video…
…But you were able to realize she was completely lying with this nonsense.
This is just one of several red flags that you choose to ignore.
In BOTH instances, she clearly demonstrated a lack of respect for your intelligence.
I saw many red flags. The video that kind of make a little sense to their ligitimacy is when she said they got different licenses in different countries with less restrictions.
They even had to get residency in Estonia I believe she said. I don’t know if that’s true or not.
So not registering with the SEC became less of a concern because they basically exist on the internet. Crypto transfers have no boundaries.
A security needs to be registered in the jurisdiction it is being offered. That is the US and elsewhere NovaTech FX is promoted.
Shell company shenanigans in Estonia are meaningless. And there is of course no exemption for crypto passive investment schemes with respect to securities regulation.
The number of red flags you choose to ignore is irrelevant as you will end up losing your funds anyway.
Pipo, that little voice in the back of your mind telling you that you will get scammed, is never wrong.
She must really think they are Stupid for sure!
I just let the fear of missing out takes over seeing those around me buying first and second homes.
This is proof right here that most people really shouldn’t be making their own decisions.
Adults making poor financial decisions because they don’t want to miss out?
No wander most people struggle
My little voice in the back of my head is telling me congratulations for joining Novatech. Has paid out nicely!!
Meanwhile the Petions are in hiding. Support has been fired and non-recruitment withdrawals have blown out to five weeks.
This is not the place to shill your collapsing Ponzi. First and last warning.
Another thing I might add here, there has been nothing served, from the state of California, to Novatechfx. (Ozedit: snip, see below)
California’s securities fraud C&D is directed to NovaTech FX and the Petions.
Your strawman use of “served” implies legal action. That comes after a C&D is ignored.
Once Novatech gets the C&D, I’m sure they will comply. They always do. Just like the 5 provences in Canada. I’m detecting a pattern here. (Ozedit: whacky conspiracy theories removed)
A ponzi scheme is a ponzi scheme whether you recognize that or not.
Maybe it is. But, I don’t let that scare me. (Ozedit: derails removed)
Securities laws are materially the same in any country that regulates the financial market.
Unregistered securities are illegal in the US at the federal level. Unregistered securities are also illegal in all US states and Canadian provinces.
That’s why Novatech has only dealt in crypto in the US. (Ozedit: derails removed)
Securities fraud is securities fraud, regardless of the medium used.
Instead of trotting out Ponzi cliches, go read up on securities fraud.
Hopefully that little voice in your head is willing to help you pay back the money you’ve withdrawn (plus interest) when you’re eventually served with a clawback notice by the court.
Like it or not, that will be the end result. You haven’t made anything, you just think you have for now.
The SEC clearly states on its website that securities laws still apply even when crypto is used…
There are multiple prosecutions which prove this…some of them are covered here on behindmlm…
Haitian on Haitian crime.
Something like EminiFX sure, but NovaTech FX was pretty widespread across the US.