NovaTech Review: N-Tech trading bot Ponzi scheme
NovaTech provides no information on their website about who owns or runs the business.
NovaTech’s website domain (“novatechfx.io”) was registered on June 17th, 2019.
NovaTech LTD is listed as the owner, through what appears to be a bogus incomplete address (Vatican City).
On its website NovaTech claims to be “registered in the USA, British Virgin Islands and Estonia”.
No specific details are provided which, when combined with the bogus domain, leads me to believe these claims are false.
Update 11th July 2021 – NovaTech has abandoned their .io domain, it now redirects to “novatechfx.com”.
A page on that website has the slug “from the CEO”. On the page Cynthia Petion, styling herself as a reverend, speaks about NovaTech in the possessive.
When we developed NovaTech, Ltd., we decided on two things:
First, we resolved that our program would be affordable to join and available to anyone who wanted to participate.
Second, we committed to providing people with the tools and skills training they need to be successful.
Cynthia and her husband Eddy Petion are known to BehindMLM as top earners in the AWS Mining Ponzi scheme.
AWS Mining collapsed in April 2019. NovaTech popped up on our radar a few months later.
It seems the Petion’s launched NovaTech as a reboot Ponzi. Rather than just be top net-winners though, through NovaTech they keep more money as company owners.
Leaning into religion, Cynthia Petion is marketing herself as “The Reverend CEO”.
Eddy Petion, who served as AWS Mining’s executive President, cites himself as NovaTech’s Chief Operating Officer.
The Petions are believed to operate out of New York in the US. /end update
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
NovaTech has no retailable products or services, with affiliates only able to market NovaTech affiliate membership itself.
Update 13th March 2021 – Since publication of this review NovaTech has introduced pseudo-compliance retail investment tiers:
- Builder Package – $99-$499
- Bronze Package – $500 to $2499
- Silver Package – $2500 to $4999
- Gold Package – $5000 to $9999
- Platinum Package – $10,000 to $24,000
- VIP Package – $25,000 to $99,999
- President Package – $100,000+
Builder to Platinum packages carry a $25 a month “service fee”.
I’ve marked this as pseudo-compliance because there it costs exactly the same to sign up as an affiliate with the Packages. /end update
NovaTech’s Compensation Plan
NovaTech affiliates invest funds on the expectation of an advertised variable return.
- Builder – $99 to $499
- Bronze – $500 to $2499
- Silver – $2500 to $4999
- Gold – $5000 to $9999
- Platinum – $10,000 to $24,999
- VIP – $25,000 to $99,999
- President – $100,000+
Builder to Platinum packages attract an additional $25 a month “service fee”.
NovaTech fails to disclose ROI rates but does state VIP tier affiliates will earn 1% a month more than everyone else.
Withdrawal fees for each NovaTech investment tier are as follows:
- Bronze – 35%
- Silver through Platinum – 30%
- VIP – 25%
NovaTech Affiliate Ranks
There are five affiliate ranks within NovaTech’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Associate – sign up as a NovaTech affiliate and invest
- Junior Executive – invest at least $2500, recruit three Associates and generate $50,000 in downline investment volume
- Executive – invest at least $5000, recruit two Junior Executives and generate $500,000 in downline investment volume
- Senior Executive – invest at least $10,000, recruit two Executives and generate $2,000,000 in downline investment volume
- Director – invest at least $50,000, recruit two Senior Executives and generate $10,000,000 in downline investment volume
- Ambassador – invest at least $100,000, recruit two Directors and generate $50,000,000 in downline investment volume
Note that up to Executive no more than 50% of required downline investment volume can come from any one unilevel team leg.
This percentage is reduced to 40% from Senior Executive.
Recruitment & Retail Commissions
NovaTech pays affiliates to recruit new affiliate investors and refer retail customers:
- recruit a new Bronze tier affiliate or retail customer and earn $50
- recruit a new Silver tier affiliate or retail customer and earn $100
- recruit a new Gold tier affiliate or retail customer and earn $150
- recruit a new Platinum tier affiliate or retail customer sand earn $200
- recruit a new VIP tier affiliate or retail customer and earn $250
If a new NovaTech affiliate recruits three Bronze tier affiliates within 45 days of signing up, they earn a $100 Fast Start Bonus.
If a new NovaTech affiliate recruits five Silver tier affiliates within 45 days of signing up, they earn a $300 Fast Start Bonus.
ROI Match Bonus
NovaTech pays a ROI Match Bonus via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
NovaTech caps the ROI Match Bonus at five unilevel team levels.
The ROI Match Bonus is paid out a percentage of returns paid to unilevel team affiliates across these five levels as follows:
- Associates earn a 5% ROI Match Bonus on level 1 (personally recruited affiliates)
- Junior Executives earn a 5% ROI Match Bonus on level 1 and 2% on level 2
- Executives earn a 5% ROI Match Bonus on level 1, 2% on level 2 and 1% on level 3
- Senior Executives earn a 5% ROI Match Bonus on level 1, 2% on level 2 and 1% on levels 3 and 4
- Directors and higher earn a 5% ROI Match Bonus on level 1, 2% on levels 2 and 1% on levels 3 to 5
Rank Achievement Bonus
Nova Tech rewards affiliates for qualifying at Junior Executive and higher with the following Rank Achievement Bonuses:
- qualify as a Junior Executive and receive $500
- qualify as an Executive and receive $2000
- qualify as a Senior Executive and receive $5000
- qualify as a Director and receive $10,000
- qualify as an Ambassador and receive $25,000
NovaTech takes 10% of company-wide investment volume and places it into three Profit Sharing pools.
These pools correspond with NovaTech affiliate ranks as follows:
- Senior Executive Pool – 2%
- Director Pool – 3%
- Ambassador Pool – 5%
Senior Executives, Directors and Ambassadors each receive a share in their corresponding rank pool.
NovaTech pays out the Profit Sharing pools quarterly.
NovaTech affiliate membership is $49.95 and then $2.95 a month.
Full participation in the attached income opportunity requires a minimum $99 investment (affiliate fee waived).
Note that if a NovaTech affiliate signs up with a package instead of just paying the $49.95 fee, they are charged $25 a month (VIP and President package tiers excluded).
NovaTech claim to generate external ROI revenue via their “N-Tech” trading bot.
Supposedly N-Tech trades in forex and cryptocurrency.
Our sophisticated AI Robots suggest solutions to find profitable trades even in the most unstable markets, intelligently maximizing trading opportunities and reducing the possibility of losses without human intervention.
No evidence of N-Tech existing, performing trades or external revenue being actually generated and used to pay affiliates is provided.
As it stands the only verifiable source of revenue entering NovaTech is new investment – which the company uses to pay recruitment commissions.
Given the otherwise fraudulent nature of NovaTech’s business, it’s highly likely the company is simply recycling newly invested funds to pay off existing investors.
Supporting this is NovaTech’s supposed August 17th launch date, and the company seemingly having failed to register itself with financial regulators.
NovaTech is quite clearly offering a passive investment opportunity, which in the context of regulation is a securities offering.
In order to operate legally, NovaTech must register its opportunity in every jurisdiction it operates in.
Q: Where is NovaTech registered?
A: NovaTech is currently registered in the USA, British Virgin Islands and Estonia.
While I can’t speak for the British Virgin Islands and Estonia, I can confirm NovaTech the MLM opportunity is not registered with the SEC in the US.
There is a NovaTech Inc. registered with the SEC, however as far as I can see it’s an unrelated Nevada corporation that sells cleaning products.
This means that irrespective of everything else, NovaTech is operating illegally in the US.
And as far as the BVI and Estonia goes, BVI is an outright scam-friendly jurisdiction with little to no regulation.
Estonia has regulation and regulators in place but isn’t known for timely securities regulation of MLM companies.
Put simply, from a regulatory perspective NovaTech incorporating in either jurisdiction is meaningless.
Again that’s assuming NovaTech aren’t telling porky pies, which let’s face it they probably are.
As with all MLM Ponzi schemes, once affiliate recruitment slows down so too will new investment.
This will starve NovaTech of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
Update 13th March 2021 – Since this review was published NovaTech have attempted to introduce a retail customer tier.
Seeing as it costs exactly the same to sign up as an affiliate with a Builder Package as it does a retail customer with a Builder Package, NovaTech’s retail packages are pseudo-compliance.
The package tier pricing had changed so I’ve adjusted that where applicable.
NovaTech remains unregistered to offer securities in any jurisdiction.