A NovaTech FX investor has filed a RICO class-action in the Southern District of New York.

Plaintiff Avis Mullins cites himself as a New York resident and “investor of NovaTech FX”.

Named defendants in Mullins’ proposed class-action are:

  1. Cynthia Petion, co-founder and CEO of NovaTech FX
  2. Eddy Petion, husband of Cynthia Petion and co-founder and COO of NovaTech FX
  3. Ricardo Roy, Cynthia Petion’s brother and CTO of NovaTech FX
  4. Debora Brasil (aka Debora Brazil), a Florida resident, President of NovaTech FX and “Cynthia Petion’s advisor”
  5. NovaTech LTD, a St. Vincent and Grenadines shell company
  6. NovaTech FX, the MLM crypto Ponzi scheme run through NovaTech LTD
  7. NovaTech Advisors LLC, a Florida company owned by Cynthia and Eddy Petion
  8. Nova Pay LLC, a Florida company owned by Cynthia and Eddy Petion and Ricardo Roy
  9. NovaTrading OU – Estonian shell company owned by Cynthia and Eddy Petion
  10. Frantz Ciceron, New York resident, CEO of Ciceron Frantz & Associates Inc. and Senior Director promoter of NovaTech FX
  11. Frantz Ciceron & Associates, a New York company alleged to have laundered NovaTech FX investor funds
  12. Jean Martin Zizi, Georgia resident and Senior Director promoter of NovaTech FX
  13. Travis Bieberitz, a Tennessee resident, NovaTech FX promoter and “serial promote of Ponzi scheme[s]”
  14. Bob Saint Louis, a Long Island resident and NovaTech FX promoter
  15. John Garofano, a NovaTech FX promoter
  16. Paul J. DeRenzo, a Pennsylvania resident and NovaTech FX promoter
  17. James Gorbett [sic], a Senior Director promoter of NovaTech FX

Mullins’ proposed class-action was originally filed on February 5th. An Amended class-action Complaint was filed on February 7th.

As alleged by Mullins, each of the individual NovaTech FX Defendants

  • directly participated in the management of NovaTech FX and was directly involved in the day-to-day operation of the company at the highest levels;
  • was privy to confidential proprietary information concerning the Company and its business operations;
  • was directly or indirectly involved in drafting, producing, reviewing and/or disseminating false and misleading statements and information;
  • was directly or indirectly involved in the oversight or implementation of the Company’s internal controls;
  • was aware of or recklessly disregarded the fact that the false and misleading statements were being issued concerning the Company; and/or
  • approved or ratified these statements in violation of federal securities laws;
  • knew this was a fraud and intentionally participated in it;
  • knew that this was a Ponzi scheme, and that the money paid to investors were not from investment in cryptocurrency, but money from new investors; and
  • knew that neither Cynthia Petion nor Eddy Petion had a license from any relevant authority to sale [sic] securities

At the state level, Mullins alleges specific fraud allegations in Washington, Wisconsin and California.

With respect to the named individual promoters of NovaTech FX, Mullins alleges Jean Martin Zizi held in-person NovaTech FX promo events in Long Island.

Zizi purportedly promoted NovaTech FX through his company Trinity of Success, targeting “people who are unsophisticated and [k]new very little about cryptocurrency”.

Bob Saint Louis, cited as a “self-titled Christian pastor” and Baptist minister, promoted NovaTech FX with his wife Sophia Saint Louis (together, right).

The husband-and-wife pair worked together with other Defendants to recruit investors under them.

In or about 2022, the Saint-Louises, became senior directors of Novatech, having recruited more than a thousand people.

They joined Defendant Zizi and held several large public meetings at hotels in New York City for the purpose of recruiting and defrauding members of the class.

Frantz Ciceron (right) is alleged to have

joined the Ponzi scheme, knowing that Novatech was a Ponzi scheme designed to defraud investors who knew very little about cryptocurrency.

Mullins accuses Ciceron of targeting the Haitian American community in Brooklyn.

Paul DeRenzo is cited as being “in charge of recruitment of [NovaTech FX investors] in Pennsylvania.

[DeRenzo] knew that Novatech was a Ponzi scheme and participated in the crime because [DeRenzo] received a percentage of the money invested.

DeRenzo (right) is another serial Ponzi fraud offender.

In addition to being personally named in Wisconsin’s regulatory action against NovaTech FX, DeRenzo was named in Wisconsin’s recent “global fraud scheme” cease and desist against GSPartners.

John Garofano is cited as a scammer shilling Ponzi schemes on YouTube for the past two years.

James Gorbett is again cited as a NovaTech FX promoter who “knew that NovaTech wa sa Ponzi scheme designed to defraud investors of their money”.

I couldn’t find a “James Gorbett” tied to NovaTech but did come across “Global Ambassador” James Corbett.

I believe this is the individual referenced in Mullins’ complaint with a misspelt surname.

Travis Bieberitz is alleged to have joined Novatech FX in 2019. I was able to confirm his status as a “serial promoter of Ponzi scheme[s].”

Mullins again accuses Bieberitz (right) of targeting “people who are unsophisticated and know very nothing about investment in cryptocurrency”.

Bieberitz, assured prospective investors that unlike the investment that he had promoted in the past, Novatech was neither a scam nor a Ponzi Scheme, and that investors could be confident that the anonymous individuals managing Novatech would never “pull the rug” and steal investors’ funds.

Although she’s primarily cited as being part of corporate and close to Cynthia Petion, Debora Brazil is also accused of personally recruiting “several hundreds of people” into NovaTech FX.

Cynthia Petion’s brother, Ricardo Roy, is cited as “the architect of the Ponzi scheme, designing the computer system that reports the fake returns.”

Roy (right) is also claimed to have been “in charge of the directors and the Senior directors of Novatech.”

If approved, Mullins’ proposed class covers all NovaTech FX victims who signed up and invested between January 2019 and December 2023.

Specific causes of action alleged against the NovaTech FX Defendants across twenty-five counts include:

  • Conduct or Participation in a RICO Enterprise through a Pattern of Racketeering Activity
  • Acquisition and Maintenance of an Interest in and Control of an Enterprise Engaged in a Pattern of Racketeering Activity
  • Use of Income Derived from a Pattern of Racketeering Activity in the Operation of an Enterprise Engaged in Activities Which Affect Interstate or Foreign Commerce
  • Conspiracy to Engage in a Pattern of Racketeering Activity
  • Breach of Contract
  • Breach of Implied Covenant of Good Faith and Fair Dealing
  • Unjust Enrichment
  • Conversion / Theft / Embezzlement
  • fraud
  • Intentional Misrepresentation
  • Civil Conspiracy
  • Use of Income Derived from a Pattern of Racketeering Activity in the Operation of an Enterprise under New York Organized Crime Control Act Article 460
  • Conduct or Participation in an Enterprise through a Pattern of Racketeering Activity under the New York Crime Controlled (RICO) Act, Article 460
  • Acquisition and Maintenance of an Interest in or Control over any Enterprise under New York Crime Controlled Act of 1986
  • Conspiracy to Violate the Provisions of Article 460 et seq., of New York Crime Control Act
  • Intentional Infliction of Emotional Distress
  • Negligent Infliction of Emotional Distress
  • multiple violations of The Exchange Act

Of note is NovaTech FX collapsed in February 2023. The Petions went into hiding in late 2022 and haven’t been seen in public since.

I’ve heard rumblings they fled to Haiti but haven’t seen anything definitive.

What remains unclear is how Mullins intends to serve the Petions with the class-action complaint.

Other irregularities I noted with Mullins’ Complaint include numerous spelling errors and improper formatting.

Requested relief, for example, is sandwiched in between stated causes of action. A unilevel team graphic from BehindMLM is also included in Mullins Complaint without attribution.

Presumably this means, at least in some part, Mullins’ attorney used BehindMLM to research NovaTech FX. This isn’t credited anywhere in the Complaint (typically sources are cited as footnotes).

The case docket notes multiple issues with Mullins’ original complaint, including misspelling of party names. Unless there’s a “James Gorbett” I couldn’t find, party names are still misspelt in Mullins’ revised February 7th Amended Complaint filing.

It also appears that Mullins’ attorney made a demand for $200 billion when filing the original complaint. This was corrected to $9.9 million by the court clerk on February 6th.

While NovaTech FX was absolutely a Ponzi scheme and the Petions and promoters should be brought to justice, I’m getting a bit of a question mark vibe over the longevity of this suit.

Nonetheless I’ve added Mullins’ proposed class-action to BehindMLM’s calendar. Stay tuned for updates as we continue to track the case.

 

Update 14th August 2024 – On August 13th Mullins filed a Second Amended Complaint (SAC).

The SAC adds an additional forty-six defendants to the proposed NovaTech FX class-action:

  1. Crowned One Ministries
  2. Stevan Cunningham
  3. George C Fraser
  4. Bertha Ciceron
  5. King Multi Service Agency
  6. Positive Vision Marketing LLC
  7. Trinity of Success Club INC
  8. The Catholic Diocese of Florida
  9. Society of St. Agnes
  10. Sean Hubbard
  11. Scott Brewster
  12. Bob St Louis
  13. Sophia St Louis
  14. Joel Scott Whitney
  15. Dwayne Eddings
  16. Stan Richards
  17. Andrelle Calixte
  18. Antonio Arnold
  19. Albert Jules
  20. Demons Bwala
  21. Anthony DeLoatch
  22. Gwenda Clark
  23. Robert Bearden
  24. Kyle Farma
  25. Siera Orion LLC
  26. Jems Moise
  27. Samantha Zizi
  28. Bruno Mazali
  29. Peral Saint Jean
  30. Heather J. Belanger
  31. Goldenstastic Consulting
  32. Atukuzwe Maria Nyirenda
  33. Larry D. Golden
  34. Laurengine Dartois
  35. Jude Dartois
  36. Olivier Chimpiringa Luhaze
  37. Steven Greene
  38. Agee Vetiaque
  39. Devey Dejong
  40. Yvonne Murren
  41. Jean E. Exantus
  42. Edens Joseph
  43. Integrity Accounting Services INC
  44. Philip Smith
  45. BGTi, LTD and
  46. AWS Mining

It should be noted that the SEC has filed suit against NovaTech FX, its Petion co-founders and several promoters.

Typically regulatory civil action results in non-regulatory civil action against the same party or parties being stayed.

For this to happen the SEC would need to file a motion requesting a stay on Mullins’ proceedings. This hasn’t happened as at the time of this update.