Stay in the loop! Subscribe to our newsletter and gain access to exclusive insights, trends, and news from the world of business and leadership. Don’t miss out!
The US SEC has launched a lawsuit against cryptocurrency business NovaTech and its co-founders, Cynthia and Eddy Petion.
On Monday, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against cryptocurrency company NovaTech and its co-founders, Cynthia and Eddy Petion. The lawsuit accuses them of orchestrating a fraudulent scheme that raised over $650 million from more than 200,000 investors worldwide, many of whom were Haitian-Americans.
The SEC alleges that NovaTech and the Petions misled investors by promising that their money would be secure, with Cynthia Petion claiming that investors would “be in profit from day one.” However, the SEC contends that the Petions used new investor funds primarily to pay off earlier investors and to pay commissions to promoters. Additionally, millions of dollars were allegedly siphoned off by the Petions for personal gain. This fraudulent operation reportedly lasted four years, culminating in NovaTech’s collapse in May 2023.
This lawsuit follows a similar action taken by New York Attorney General Letitia James two months prior. NovaTech and the Petions were sued in Manhattan state court for fraud exceeding $1 billion.
Regulators have labeled the scheme a pyramid scheme, where bonuses and commissions are paid to recruit new investors. NovaTech allegedly targeted victims by appealing to their religious faith, utilizing social media platforms such as Telegram and WhatsApp, and sometimes the Haitian Creole language. Cynthia Petion, branding herself as “Reverend CEO,” claimed that NovaTech was “God’s vision.”
In addition to the Petions, the SEC charged six NovaTech promoters with fraud. These promoters are accused of continuing to recruit investors despite several “red flags” that questioned the company’s legitimacy, such as delayed withdrawals and regulatory actions in the U.S. and Canada. One promoter, Martin Zizi, has agreed to pay a $100,000 civil fine.
The SEC’s lawsuit in the U.S. District Court for the Southern District of Florida seeks restitution for victims and the imposition of civil fines on the defendants. The case, SEC v. Nova Tech Ltd, is identified under the case number 24-23058.
The outcome of this lawsuit, alongside the ongoing case filed by the New York Attorney General, could have significant implications for the victims and the cryptocurrency industry.
Championing Excellence and Female Leadership in Engineering Sheeba Benny, a trailblazer in the field of electrical
How a 21-Year-Old Turned a Conservatory Start-Up into a $650,000 Business At just 21 years old,
With the global speaking industry valued at over $2 billion and growing rapidly, companies and event
In the world of technology-driven transformation, few leaders stand out as much as Senthil Babu, CEO
How DDSports and DeLuca Designs Business Academy are Revolutionizing Markets and Inspiring a New Generation of
