NovaTech FX & Petions charged with fraud in Washington
NovaTech FX and owners Cynthia and Eddie Petion have been charged with securities fraud in Washington.
A cease and desist order and Statement of Charges was filed against NovaTech and the Petions on October 27th.
As per the order, filed by the Securities Division of Washington’s Department of Financial Institutions (DFI);
The Securities Administrator of the State of Washington has reason to believe that Respondents NovaTech Ltd, Cynthia Petion, and Eddie Petion are violating the Securities Act of Washington.
The Securities Administrator finds it is in the public interest and is necessary or appropriate for the protection of investors to enter a summary order to immediately cease and desist from such violations.
Respondents of DFI’s order are
- NovaTech Ltd, a St. Vincent and Grenadines shell company operated from Royal Palm, Florida
- Cynthia Petion (wife), a former resident of Royal Palm, Florida whose “present whereabouts are unknown” and
- Eddie Petion (husband), a former resident of Royal Palm, Florida whose “present whereabouts are unknown”
Note that the order itself doesn’t appear to be public, hence the screenshot above. Brandon of the YouTube channel Ponzi Patrol sent the order in, which I’m quoting directly from.
NovaTech FX is an MLM trading bot ruse Ponzi scheme operated through cryptocurrency.
NovaTech FX officially collapsed in February 2023. The Petions however went into hiding in late 2022.
As part of NovaTech FX’s securities fraud, DFI notes
Cynthia Petion, Eddie Petion, and NovaTech are generally soliciting investors to purchase unregistered securities in the form of percentage allocation management module accounts (“PAMM Accounts”).
The offer and/or sale of the PAMM accounts described above constitutes the offer and/or sale of a security as defined in RCW 21.20.005(14) and (17).
NovaTech, Cynthia Petion, and Eddie Petion are publicly advertising the investment on social media platforms such as Facebook, Instagram, and Telegram.
Over 1,000 Washington investors are believed to have invested with NovaTech, Cynthia Petion, and Eddie Petion.
NovaTech is not currently registered to sell its securities in the state of Washington and has not previously been so registered. Nor has it filed a claim of exemption from registration.
Cynthia Petion is not currently registered as a securities salesperson or broker-dealer in the state of Washington and has not previously been so registered.
Eddie Petion is not currently registered as a securities salesperson or broker-dealer in the state of Washington and has not previously been so registered.
NovaTech Ltd, Cynthia Petion, and Eddie Petion violated RCW 21.20.140, the securities registration section of the Securities Act of Washington, by offering and/or selling securities for which no registration is on file with the Securities Administrator.
Cynthia Petion and Eddie Petion violated RCW 21.20.040, the licensee registration section of the Securities Act of Washington, by offering and/or selling said securities while not being registered as a securities salesperson or broker-dealer in the state of Washington.
NovaTech Ltd, Cynthia Petion, and Eddie Petion violated RCW 21.20.010, the anti-fraud section of the Securities Act of Washington, by making untrue statements of material fact or omitting to state material facts necessary to make the statements made, in light of the circumstances in which they were made, not misleading.
Disclosure failings are part of the filed charges;
Respondents are failing to disclose to investors material information related to the investment, including
-basic information about NovaTech’s financial condition, business, operations, and management;
-information about Cynthia and Eddie Petion’s bankruptcy filings and civil judgments;
-information about state actions taken against NovaTech and Cynthia and Eddie Petion; and
-a reasonable basis for NovaTech’s revenue projections.
DFI’s charges also note a “NovaTech 2.0” reboot, however I believe this is a recovery scam separate from the Petions’ NovaTech FX Ponzi scheme.
As a result of NovaTech FX’s securities fraud in Washington, DFI’s order, issued on an emergency basis, orders NovaTech FX and the Petions to
cease and desist from offering and/or selling securities in any manner in violation of RCW 21.20.140, the securities registration section of the Securities Act of Washington.
IT IS FURTHER SUMMARILY ORDERED that Respondents … shall each cease and desist from offering and/or selling securities in any manner in violation of RCW 21.20.040, the registration section of the Securities Act of Washington.
IT IS FURTHER SUMMARILY ORDERED that Respondents … shall each cease and desist from violating RCW 21.20.010, the
anti-fraud section of the Securities Act of Washington.
DFI goes on to detail its intent to impose fines, constituting $50,000 each for NovaTech FX, Cynthia and Eddie Petion ($150,000 total). Legal costs of $8500 are also cited.
NovaTech FX and the Petions have a set period of time to respond to DFI’s order, failing which it will be enacted.
Continued violation of the order does constitute a criminal offense in Washington, but is unlikely due to NovaTech FX’s collapse.
In addition to Washington, California and Wisconsin have also issued NovaTech FX securities fraud warnings. Wisconsin fined NovaTech FX and the Petions $50,000.
Outside of the US NovaTech FX has received multiple securities fraud warnings from Russia and Canada.
I hope they are punished in accordance with the laws for any wrong doings committed.
They robbed me of my hard earned retirement money and my dignity!!!!
I understand the theives live in Panama. I hope the government punished them very hard included the seller of thei products.
On what basis are you claiming the Petions are in Panama?
They should be punished to the maximum degree, I put my hard earned money into an investment, not to be stolen from me.
It’s a shame. They called themselves Christians and Cynthia a Reverend and knew all along what they were doing. They hurt many people financially and emotionally.
It’s sad they failed to do the right thing from the beginning. Their business model could have been exceptional, but they put their own desires above godly plans and robbed the people.
The question should be asked how will they pay back the people at least their investments?
What are you talking about? NovaTech FX was a Ponzi scheme from day one.
The Petions set out to steal your money and did. Time to accept facts.
Through regulatory intervention. Scammers don’t pay back their victims willingly.
Their business model was exceptional – they planned to steal and they made a resounding success of it.
There was never any legitimate business there.
It’s just so shameful that “so called christians” could do such a thing.
I lost $5,000 I was trying to start something good that would help me leave an inheritance for my grandchildren and have lost it!
SHAME ON YOU PETIONS!!! God will handle you better than I can!!!
Not to rub salt in the wound but maybe next time don’t substitute religion for due-diligence?
They should pay back the money they stole from these hard working families.
Prime example religion and business don’t mix.
Question: Why aren’t the feds involved?
The handwriting was scream SCAM SCAM SCAM! but I did not pay attention simply because they paid well for the first 3 years.
This is not the last scam! There are people gnashing their teeth, marriages on the verge of separation because of the actions of Novatech.
It felt like they exited a long time ago, but still used intimidation and manipulation to force coerce people to stay while cash earned through their sweat, tears, and blood was stashed away.
If the Petions ever happen to read this, please do the right thing. You’ve left people more hurt, poorer, less faith in humanity than you met them.
I was recruited to Nova Tech through Eartha Harris in Baltimore Maryland and was unable to contact her.
The disappointment was she was my friend we came up the ranks together.
They have over $470k from me. Find them and prosecute.
Do we know if there will be any compensation for the investors after they are charged?
if people knows where are these to individuals hiding call the authorities, even if it is outside USA. They probably will be compensated by the Government.
Not every investor has knowledge of this case. Let’s raise the voice.
You’re at the “haven’t even gone on a date yet” stage and you’re asking “what flowers do you want at your funeral after 60 years of marriage?”
You win the reward for brightest person on the block
I had a very close friend tell me about Novatech, and they were trying to get people involved with them.
when they were trying to show me how much money they pulled out the compound interest calculator and showing me if you put $2,500 in with your 3% compound interest you will make $2 million in less than 2 years. Wow, I will be a millionaire soon..
well I fell for that.. for about a day or two. And this is when Novatech was in its prime in 2021.
I ran across this one ad it says Ponzi schemes don’t last one year if it does the maximum it’ll go is 5 years. well they’ve been around since 2019 so it’s coming to the end.
so I said to myself I’m not going to retire for at least 10 more years so let’s just hold off and wait three more years. then I can retire with 2 million dollars free.. But by my surprise in 2022 my friend keeps telling me please put your money in so you can make all this money.
I’m glad I did not listen to them.. that friend lost $10,000 invested included 30 friends that lost money too..
that person’s living in a homeless shelter as of today.. this is a true story… may you bless the ones that fell for this….
They never said you’ll get 3% per week. But in most of the weekly ROI was 3%. Sometimes it used to be 4%, 1%, 2.1% etc…
In the website it is stated the past performance is not a garantee for future performance. All will depend on the market trends. So please don’t say what wasn’t said by Novatechfx.
They are facing legal issues which are civil, not criminal. We hope they come out with positive results.
1. How much a Ponzi scheme pays out is irrelevant to it being a Ponzi scheme.
2. There never was any trading. “Markets trends” had nothing to do with NovaTech FX. They just paid out until withdrawals inevitably exceeded new investment.
3. Claiming there aren’t pending NovaTech FX criminal charges is a bit silly with the Petions in hiding.
Novatech was my second Bitcoin investment. My first was also a scam. Novatech is my last… never again.
Even if they are prosecuted, no way they will ever be able to pay back the billions they stole
It wasn’t the Petions’ first scam either. A little bit of due diligence would have revealed that they were president and vice president of a previous ponzi scam called AWS mining.
A lot of novatech members actually knew that and simply ignored this red flag anyway.
Scammers do not do the right thing. Unfortunately, if the Petions do read your post, they will likely laugh and ignore your request.
I hope that the Petions also left these people wiser with the understanding that scammers do exist.
My wife was introduced by her sister who then convinced me to invest.
My question is; did the money come out through coinbase once request has been approved and what was the largest ever approved if any that you actually recieved?
I need to know this bc before novatech went belly up I saw a coinbase receipt for 9 thousand in my wife’s phone and when I asked her about it she said that it was fake.
Immediatelt I began questioning her and her motives as to why would you be having a fake receipt in ÿour phone?
Hate to think this woman has taken the money from the account behind my back.
Your wife’s sister is a Ponzi scammer. If your wife is lying to you about money though you have bigger problems my friend.
Hi Guys,
Is it possible to do a class action against the trading platform or who ever was supporting the trading platform? I did this for a previous Ponzi scheme and we got 58% of our money back.
Second point on an internet search there is a Nova tech claiming to get your account reinstated with a new account for $250. I am checking, but seems like a scam?
Sure, go see a lawyer.
Recovery scammers.
Oz,
Yes if a group of people who have lost money they can see a lawyer who can organise a class action. When I did this before it cost very little or even no money to do this as was claimed against household insurance policy.
Recovery scammers. Yes just scammers so avoid.
As a Financial Advisor I should have known better but I still invested with Novatech. Now I am out of pocket $30,000 Canadian.
I cautiously invested $30,000 but did not do my research effectively and left it up to the person who introduced me to the scammers.
May the hand of God be upon these people and that they will be punished in this life.
Never again am I investing. Gratefully, I only invested 500$ although the 2 that introduced me to this tried to talk me into investing more.
Hope a class action is filed. I want my 500$ back & double for my trouble.
It’s hard to believe for me that the Petions were scammers. I have a friend (she did not invest in Novatech) that was investing with her trading groups with Trader Domain, she said that Novatech was using Trader Domain to trade for the the Petions/NT.
Of course Trader Domain was also a scam they rugged and scammed Novatech, that was the time Novatech stopped paying us. So the scammers (NT) got scammed I guess.
My friend said that trader domain said that they had to close this website and integrate in another one called Trueblue and will trade their money again.
We know now that Trueblue it’s just another name for Trader Domain. Anyway, Trueblue is up and “trading”, my friend’s money grew to $24K but she can’t withdraw them for whatever reason…
I don’t remember what she told me. I told her that those are just numbers if she cannot withdraw the money… so probably if Trader Domain would not have rugged, we would still be getting some returns on our money with Novatech.
I did not put much into it and I got it back by withdrawing every week.
No, because all Ponzi scams collapse eventually.
At best the Petions are financially inept greedy morons who saw an opportunity to resell access to a “platform” at a premium adding 0 value to the process after not learning their lesson selling AWS mining (that was also a scam – one would think they would learn? Or be cautious about doing it twice?).
Either way they should not be trusted. (Culpable) homicide or murder both end with death.
Someone or some group need to (Ozedit: snip, see below)
Stop being lazy.
Either go see a lawyer yourself or wait for the Petions to be arrested like everyone else.
I’m not being lazy, dope. I was only a small investor wisely, so no reason for me to pursue this, as got bigger and better things to do mate.
Yet here you are, begging for someone else to “pursue this” so you can lazily join in.
LOL Right on, Oz!!! You nailed it. They lazy sacks of you know what just trying to ride the easy money.
I’m not lazy, I just want somebody else to do it. Sure fella. Suuuure.
You suuure? What aren’t you understanding?
I only had a small amount so I haven’t time to allocate to do it. Therefore it is Upto bigger losers to do if they want to do a class action through a lawyer to get their money back. Simple to understand really.
Aww bless your heart suggesting a thing every dog and his bone knows to suggest. You being lazy because it’s a “small amount” is of course irrelevant
What a hero
There’s nothing wise about donating money, no matter the amount, to a Ponzi scheme lol
Where did all the money go that they took from people? Was it spent divvied up with other partners or sent to some foreign overseas Bank that no one can find or detect or into a Swiss account or something?
I don’t know. I don’t think I’ll get my $2,500 back after listening to my friends that said they were doing well with it and they recommend me to do the same.
My friends lost more from the day told me and it was going good and their money was growing. Who can you trust today?
Crossing fingers.
AntiMLM, Anyone can begin a class action by consulting a lawyer. Just I was a small investor and haven’t got time to arrange as busy with bigger and better things.
Is simple, I don’t know why your struggling with this concept?
Ponzi Patrol, So you haven’t heard of tax loss, so it cost me nothing. Or other people may have had spare Bitcoins, because to invest it was only in bitcoin.
I Don’t know why you have such limited knowledge?
Alright, I think we’ve established you’re too lazy to do anything.
Coming on here begging others to do so, the entire point of this convo thread, seems to be lost on you. And you don’t seem to know much.
Moving on…
Only one struggling here is you, talking as if this is some world shattering suggestion nobody has ever thought of.
Fuck off victim.
Probably they are all also “very busy with bigger and better things”.
You can blame Oz and AntiMLM for being frank, but they are not victims; they just report on the scams. And as you may have noticed, there are many scams going on; so they too are “very busy with bigger and better things”.
It is not them who need to take action and if they point out to victims that they (the victims) need to take action, it is because victims typically are “very busy with bigger and better things” to even not bother reporting to authorities. Yet those victims typically ask for others to do something… while making excuses for why they don’t do it themselves.
It is just that this happens all the time and victims allow the criminals to get away with it, because of being “very busy with bigger and better things”.
If you’re a victim, you need to do something about it; or accept that criminals get away and funds are lost.
You started with this, indicating that you have been a victim of a Ponzi scheme before. In a later reply you make a valid point that victims seeking to take action could perhaps use some insurance to cover costs of such action.
Good.
But then when suggested “that you do it” you indicate that you cannot be bothered because in this scam (your second one or n-th one?) you lost just a small amount.
That triggered people. I hope you realize why and how.
Uhhh, wut?
You donated money to a Ponzi scheme, but I have limited knowledge? Not sure you know how “tax losses” work if you think you’ve lost no money. Delusional like all Ponzi players.
@Hi Inga H.
Seems more sensible reply.
However seems people missing the point to do a class action you need a group of people (Ozedit: snip, see below)
Right, which brings us back to you being too lazy to organize said group of people.
That’s fine. But what you don’t get to do is then bitch and whine about nobody else doing it either.
This is the end of this discussion.
Fantastic.
Good, thanks for doing a great job.
I invested 4500 tried to pull down 800 still hanging out their saying pending.