{"investigation":{"slug":"novatech-ltd","entity_name":"NovaTech Ltd.","trust_score":2,"severity_base":null,"score_modifier":0,"confidence":0.97,"status":"published","content_type":"investigation","summary":"NovaTech Ltd. (also marketed as NovaTechFX) was a multi-level marketing crypto and foreign exchange investment platform that operated from 2019 to May 2023. Co-founders Cynthia and Eddy Petion are alleged by the SEC and the New York Attorney General to have raised more than $650 million — and by some accounts over $1 billion — from more than 200,000 investors worldwide via a Ponzi and pyramid scheme. The SEC filed a complaint in August 2024; Canadian regulators have already issued a $2.5 million sanction, and a $2.3 billion RICO class-action lawsuit is pending in federal court.","sections":[{"content":"NovaTech Ltd., operating publicly as NovaTechFX and accessible via novatechfx.com, was founded by Cynthia Petion and her husband Eddy Petion, who resided in Wellington, Florida. The company presented itself as a licensed crypto asset and foreign exchange trading platform that would generate consistent weekly profits for investors. Cynthia Petion, who dubbed herself 'The Reverend CEO,' marketed the platform as 'God's vision,' incorporating religious messaging to build trust, particularly within the Haitian-American community. Before launching NovaTech, the Petions were top promoters of AWS Mining Pty Ltd., a separate alleged pyramid scheme that collapsed in 2019 after the Texas State Securities Board accused it of making false and misleading statements. According to the New York Attorney General, the Petions recruited over 200,000 investors into AWS Mining before that scheme folded; they subsequently launched NovaTech and marketed it partly as a vehicle for former AWS Mining investors to recoup their losses.","heading":"Overview and Background","sources":[{"url":"https://www.sec.gov/newsroom/press-releases/2024-95","name":"sec.gov","type":"other","credibility":3},{"url":"https://ag.ny.gov/press-release/2024/attorney-general-james-sues-cryptocurrency-companies-novatechfx-and-aws-mining","name":"ag.ny.gov","type":"other","credibility":3},{"url":"https://www.aol.com/wellington-couple-scammed-investors-650-090612418.html","name":"aol.com","type":"other","credibility":3}],"severity":"medium"},{"content":"From approximately August 2019 through May 2023, NovaTech accepted cryptocurrency deposits from investors and promised weekly trading returns of 2% to 4%, claiming the platform had never suffered a weekly trading loss. The SEC alleges that across the full life of the scheme, investors deposited over $1 billion worth of cryptocurrency, yet less than $26 million — under 3% of total deposits — was ever actually traded on NovaTech's platform. The remainder was allegedly used to pay earlier investors in classic Ponzi fashion, fund promoter commissions via a multi-level marketing recruitment structure, and enrich the Petions personally. Cynthia Petion is alleged to have transferred at least $40 million in crypto assets from NovaTech wallets to accounts and wallets controlled by herself and her husband. Promoters received recruitment bonuses, and NovaTech falsely claimed to be a registered hedge fund broker licensed to trade cryptocurrency in the United States.","heading":"Alleged Scheme Mechanics","sources":[{"url":"https://www.sec.gov/newsroom/press-releases/2024-95","name":"sec.gov","type":"other","credibility":3},{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26072","name":"sec.gov","type":"other","credibility":3},{"url":"https://ag.ny.gov/press-release/2024/attorney-general-james-sues-cryptocurrency-companies-novatechfx-and-aws-mining","name":"ag.ny.gov","type":"other","credibility":3},{"url":"https://www.theblock.co/post/310780/sec-charges-novatech-with-allegedly-operating-a-pyramid-scheme-that-raised-650-million-in-crypto","name":"theblock.co","type":"other","credibility":3}],"severity":"medium"},{"content":"The SEC complaint and the New York AG lawsuit both allege that NovaTech and its promoters deliberately targeted affinity groups, with a particular focus on the Haitian-American community. Recruitment occurred through WhatsApp group chats, prayer groups, social media, and advertising in Haitian Creole. Cynthia Petion's 'Reverend CEO' persona and explicit religious framing — including characterizing NovaTech as divinely ordained — served as recruitment tools. More than 11,000 New Yorkers are identified by the New York AG as victims, concentrated in New York City, Westchester, Long Island, and Rockland and Orange counties. Globally, the SEC identified more than 200,000 investors across numerous countries. The exploitation of religious and community trust networks is cited by regulators as an aggravating factor in the alleged fraud.","heading":"Targeting of Affinity and Religious Communities","sources":[{"url":"https://www.sec.gov/newsroom/press-releases/2024-95","name":"sec.gov","type":"other","credibility":3},{"url":"https://ag.ny.gov/press-release/2024/attorney-general-james-sues-cryptocurrency-companies-novatechfx-and-aws-mining","name":"ag.ny.gov","type":"other","credibility":3},{"url":"https://www.theblock.co/post/310780/sec-charges-novatech-with-allegedly-operating-a-pyramid-scheme-that-raised-650-million-in-crypto","name":"theblock.co","type":"other","credibility":3}],"severity":"medium"},{"content":"In October 2022, the British Columbia Securities Commission and the Alberta Securities Commission issued investor warnings about NovaTech, citing unregistered trading activity. On February 5, 2023, NovaTech announced a 60-day freeze on all withdrawal requests, which effectively signaled the scheme's insolvency. In early 2023, the Ontario Securities Commission issued a cease trade order, and in March 2023 the Capital Markets Tribunal extended that order. California and Wisconsin also issued regulatory alerts. The scheme fully collapsed in or around May 2023, leaving tens of thousands of investors unable to retrieve their funds. The California Department of Financial Protection and Innovation also issued a separate enforcement action against NovaTech.","heading":"Collapse and Initial Regulatory Warnings","sources":[{"url":"https://www.securities-administrators.ca/news/canadian-securities-regulators-warn-public-about-unregistered-trading-platform-nova-tech-ltd/","name":"securities-administrators.ca","type":"other","credibility":3},{"url":"https://www.bcsc.bc.ca/enforcement/early-intervention/investment-caution-list/2022/novatech-ltd","name":"bcsc.bc.ca","type":"other","credibility":3},{"url":"https://www.osc.ca/en/news-events/news/osc-investor-alert-nova-tech-ltd","name":"osc.ca","type":"other","credibility":3},{"url":"https://dfpi.ca.gov/enforcement_action/nova-tech-ltd/","name":"dfpi.ca.gov","type":"other","credibility":3},{"url":"https://www.investmentexecutive.com/news/from-the-regulators/sec-alleges-crypto-scheme-was-a-ponzi/","name":"investmentexecutive.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On August 12, 2024, the SEC filed a civil complaint in the U.S. District Court for the Southern District of Florida (Case No. referenced in litigation release LR-26072) against NovaTech Ltd., Cynthia Petion, Eddy Petion, and six additional promoters: Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley. The SEC charged the defendants with violations of the antifraud provisions of the federal securities laws and with registration violations. The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties. On August 15, 2024, defendant Martin Zizi reached a partial settlement agreeing to a $100,000 civil penalty and a permanent injunction, with further monetary remedies pending court approval. As of March 2025, the SEC was still attempting to serve Cynthia and Eddy Petion — who are believed to be outside the United States — via letters rogatory, and the case against other defendants remains active.","heading":"SEC Enforcement Action (August 2024)","sources":[{"url":"https://www.sec.gov/newsroom/press-releases/2024-95","name":"sec.gov","type":"other","credibility":3},{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26072","name":"sec.gov","type":"other","credibility":3},{"url":"https://techcrunch.com/2024/08/12/sec-charges-crypto-firm-novatech-with-fraud/","name":"techcrunch.com","type":"other","credibility":3},{"url":"https://www.theblock.co/post/310780/sec-charges-novatech-with-allegedly-operating-a-pyramid-scheme-that-raised-650-million-in-crypto","name":"theblock.co","type":"other","credibility":3}],"severity":"medium"},{"content":"On June 6, 2024, New York Attorney General Letitia James filed a separate civil lawsuit against NovaTechFX, the Petions, AWS Mining Pty Ltd., and associated promoters including James Corbett, Martin Zizi, and Frantz Ciceron. The NYAG lawsuit characterizes both AWS Mining and NovaTech as illegal pyramid schemes operating in sequence, with the Petions at the center of both. The NYAG alleges over $1 billion in total cryptocurrency deposited by victims, with NovaTech trading less than $26 million of those funds. The NYAG seeks to permanently bar the defendants from securities and commodities business in New York and seeks disgorgement and damages.","heading":"New York Attorney General Lawsuit (June 2024)","sources":[{"url":"https://ag.ny.gov/press-release/2024/attorney-general-james-sues-cryptocurrency-companies-novatechfx-and-aws-mining","name":"ag.ny.gov","type":"other","credibility":3},{"url":"https://www.cryptotimes.io/2024/06/07/new-york-ag-sue-novatech-and-aws-mining-for-1b-fraud/","name":"cryptotimes.io","type":"other","credibility":3},{"url":"https://financefeeds.com/new-york-sues-novatech-over-1-billion-crypto-pyramid-scheme/","name":"financefeeds.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Ontario's Capital Markets Tribunal conducted merits proceedings in July 2024 and found that Nova Tech Ltd. and Cynthia Petion violated Ontario securities law, specifically by engaging in unregistered trading, illegally distributing securities, and violating a cease trade order previously issued by the Ontario Securities Commission. On December 3, 2024, the tribunal issued sanctions totaling CAD $2.5 million against NovaTech FX and Cynthia Petion. Petion is also prohibited from acting as a director of any Ontario-registered company or any company registered with or seeking registration with the Ontario Securities Commission. The defendants did not appear at the sanctions hearing.","heading":"Ontario Capital Markets Tribunal Sanctions (2024)","sources":[{"url":"https://www.capitalmarketstribunal.ca/en/proceedings/decisions-in-brief/decision-brief-nova-tech-ltd-enforcement-proceeding-sanctions-and-costs-december-3-2024","name":"capitalmarketstribunal.ca","type":"other","credibility":3},{"url":"https://www.capitalmarketstribunal.ca/en/proceedings/decisions-in-brief/decision-brief-nova-tech-ltd-enforcement-proceeding-merits-july-19-2024","name":"capitalmarketstribunal.ca","type":"other","credibility":3},{"url":"https://behindmlm.com/companies/novatech-fx/novatech-fx-cynthia-petion-fined-2-5-million-in-canada/","name":"behindmlm.com","type":"other","credibility":3},{"url":"https://www.investmentexecutive.com/news/from-the-regulators/tribunal-sanctions-nova-tech-crypto-scheme/","name":"investmentexecutive.com","type":"other","credibility":3}],"severity":"medium"},{"content":"A private class-action lawsuit, Mullins v. NovaTech et al. (Case No. 1:24-CV-00824), was filed in the U.S. District Court for the Southern District of New York. Plaintiff Avis Mullins, a New York investor, filed the complaint through Morris Legal alleging a pattern of racketeering under RICO and seeking approximately $2.3 billion in damages. The complaint names Cynthia Petion, Martin Zizi, and other associated promoters. The case has been assigned to a judge with a federal prosecution background. The lawsuit characterizes the scheme as a willfully constructed Ponzi scheme defrauding millions of investors since June 2019.","heading":"RICO Class-Action Lawsuit","sources":[{"url":"https://behindmlm.com/companies/novatech-fx/novatech-fx-2-3-billion-rico-class-action-filed-in-new-york/","name":"behindmlm.com","type":"other","credibility":3},{"url":"https://www.offshorealert.com/avis-mullins-v-novatech-et-al-class-action-complaint-2-3b-novatechfx-ponzi-scheme/","name":"offshorealert.com","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2017","event":"Cynthia and Eddy Petion become top promoters of AWS Mining Pty Ltd., an alleged cryptocurrency mining pyramid scheme promising 200% returns within 13-15 months.","source":"","date_original":"2017-01-01"},{"date":"2019","event":"AWS Mining collapses after the Texas State Securities Board accuses the company of making false and misleading statements. Investors suffer significant losses.","source":"","date_original":"2019-01-01"},{"date":"2019-08","event":"Cynthia and Eddy Petion launch NovaTech Ltd. (NovaTechFX), marketing it partly as a way for former AWS Mining investors to recoup their losses. The platform promises 2-4% weekly crypto and forex trading returns.","source":"","date_original":"2019-08-01"},{"date":"2022-10","event":"The British Columbia Securities Commission and Alberta Securities Commission issue simultaneous investor warnings about NovaTech Ltd., citing unregistered trading activity.","source":"","date_original":"2022-10-01"},{"date":"2023","event":"The Ontario Securities Commission issues a cease trade order against NovaTech. The Capital Markets Tribunal extends this order in March 2023.","source":"","date_original":"2023-01-01"},{"date":"2023-02-05","event":"NovaTech announces a 60-day withdrawal freeze for all investor accounts, effectively signaling insolvency.","source":""},{"date":"2023-05","event":"NovaTech collapses entirely. Tens of thousands of investors across multiple countries are unable to withdraw their cryptocurrency. Total investor deposits exceed $1 billion; less than $26 million was ever actually traded.","source":"","date_original":"2023-05-01"},{"date":"2024","event":"RICO class-action lawsuit (Mullins v. NovaTech, Case No. 1:24-CV-00824) filed in the Southern District of New York seeking $2.3 billion in damages.","source":"","date_original":"2024-01-01"},{"date":"2024-06-06","event":"New York Attorney General Letitia James files civil lawsuit against NovaTechFX, the Petions, and AWS Mining, alleging over $1 billion in fraud targeting Haitian-American and other immigrant communities.","source":""},{"date":"2024-07-19","event":"Ontario's Capital Markets Tribunal issues a merits decision finding NovaTech Ltd. and Cynthia Petion violated Ontario securities law through unregistered trading, illegal securities distribution, and violation of the existing cease trade order.","source":""},{"date":"2024-08-12","event":"The SEC files a civil complaint in the Southern District of Florida against NovaTech Ltd., Cynthia Petion, Eddy Petion, and six promoters, alleging a $650 million crypto fraud scheme affecting 200,000+ investors worldwide.","source":""},{"date":"2024-08-15","event":"Defendant Martin Zizi partially settles with the SEC, agreeing to a $100,000 civil penalty and permanent injunction.","source":""},{"date":"2024-12-03","event":"Ontario's Capital Markets Tribunal issues CAD $2.5 million in sanctions against NovaTech and Cynthia Petion, and bars Petion from serving as a director of Ontario-registered entities.","source":""},{"date":"2025-03-31","event":"SEC files status report indicating ongoing efforts to serve Cynthia and Eddy Petion via letters rogatory, as the defendants are believed to be outside the United States.","source":""}],"sources_used":[{"url":"https://www.sec.gov/newsroom/press-releases/2024-95","name":"sec.gov","type":"other","credibility":3},{"url":"https://ag.ny.gov/press-release/2024/attorney-general-james-sues-cryptocurrency-companies-novatechfx-and-aws-mining","name":"ag.ny.gov","type":"other","credibility":3},{"url":"https://www.aol.com/wellington-couple-scammed-investors-650-090612418.html","name":"aol.com","type":"other","credibility":3},{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26072","name":"sec.gov","type":"other","credibility":3},{"url":"https://www.theblock.co/post/310780/sec-charges-novatech-with-allegedly-operating-a-pyramid-scheme-that-raised-650-million-in-crypto","name":"theblock.co","type":"other","credibility":3},{"url":"https://www.securities-administrators.ca/news/canadian-securities-regulators-warn-public-about-unregistered-trading-platform-nova-tech-ltd/","name":"securities-administrators.ca","type":"other","credibility":3},{"url":"https://www.bcsc.bc.ca/enforcement/early-intervention/investment-caution-list/2022/novatech-ltd","name":"bcsc.bc.ca","type":"other","credibility":3},{"url":"https://www.osc.ca/en/news-events/news/osc-investor-alert-nova-tech-ltd","name":"osc.ca","type":"other","credibility":3},{"url":"https://dfpi.ca.gov/enforcement_action/nova-tech-ltd/","name":"dfpi.ca.gov","type":"other","credibility":3},{"url":"https://www.investmentexecutive.com/news/from-the-regulators/sec-alleges-crypto-scheme-was-a-ponzi/","name":"investmentexecutive.com","type":"other","credibility":3},{"url":"https://techcrunch.com/2024/08/12/sec-charges-crypto-firm-novatech-with-fraud/","name":"techcrunch.com","type":"other","credibility":3},{"url":"https://www.cryptotimes.io/2024/06/07/new-york-ag-sue-novatech-and-aws-mining-for-1b-fraud/","name":"cryptotimes.io","type":"other","credibility":3},{"url":"https://financefeeds.com/new-york-sues-novatech-over-1-billion-crypto-pyramid-scheme/","name":"financefeeds.com","type":"other","credibility":3},{"url":"https://www.capitalmarketstribunal.ca/en/proceedings/decisions-in-brief/decision-brief-nova-tech-ltd-enforcement-proceeding-sanctions-and-costs-december-3-2024","name":"capitalmarketstribunal.ca","type":"other","credibility":3},{"url":"https://www.capitalmarketstribunal.ca/en/proceedings/decisions-in-brief/decision-brief-nova-tech-ltd-enforcement-proceeding-merits-july-19-2024","name":"capitalmarketstribunal.ca","type":"other","credibility":3},{"url":"https://behindmlm.com/companies/novatech-fx/novatech-fx-cynthia-petion-fined-2-5-million-in-canada/","name":"behindmlm.com","type":"other","credibility":3},{"url":"https://www.investmentexecutive.com/news/from-the-regulators/tribunal-sanctions-nova-tech-crypto-scheme/","name":"investmentexecutive.com","type":"other","credibility":3},{"url":"https://behindmlm.com/companies/novatech-fx/novatech-fx-2-3-billion-rico-class-action-filed-in-new-york/","name":"behindmlm.com","type":"other","credibility":3},{"url":"https://www.offshorealert.com/avis-mullins-v-novatech-et-al-class-action-complaint-2-3b-novatechfx-ponzi-scheme/","name":"offshorealert.com","type":"other","credibility":3}],"source_tags":[],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-6","created_at":"2026-05-30T19:10:17.222949+00:00","updated_at":"2026-08-29T01:34:20.764+00:00"}}