Cynthia and Eddy Petion, the founders of NovaTech Ltd., have been charged by the US Securities and Exchange Commission (SEC) with operating a fraudulent multi-level marketing and crypto asset investment scheme. The scheme allegedly raised over $650 million from over 200,000 investors worldwide, including a significant number of Haitian-American investors.
The SEC's complaint alleges that from 2019 to 2023, NovaTech promised investors safe and profitable investments in cryptocurrency and foreign exchange markets. However, the majority of the funds were used to pay existing investors and to compensate promoters, with only a small portion allocated to trading. Additionally, the Petions are accused of siphoning millions of dollars for personal use, leading to substantial losses when NovaTech collapsed.
The SEC also charged six individuals—Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley—who promoted NovaTech, despite being aware of regulatory red flags. The SEC's complaint, filed in the US District Court for the Southern District of Florida, seeks permanent injunctive relief, disgorgement of ill-gotten gains, and civil penalties against the defendants. Zizi has partially settled the charges, agreeing to a $100,000 civil penalty. The SEC's investigation was supported by several state and international regulatory bodies, emphasizing the agency's commitment to combating fraudulent schemes in the crypto asset space.
