A couple who founded a company called NovaTech Ltd. are accused of running a pyramid scheme that amassed more than $650 million in cryptocurrency, according to the U.S. Securities and Exchange Commission.
Regulator On Monday Speaking to NovaTech founders Cynthia and Eddy Petion, their company and public relations representative: We would like to thank Martin Gigi, Daphilinu Dunbar, James Corbett, Corey Sampson, John Garofano and Marsha Hadley for their role in promoting NovaTech to investors.
According to the SEC, the scheme affected more than 200,000 investors worldwide, including many members of the Haitian-American community.
“Certain defendants targeted the Haitian-American community and other similar groups, using religious overtones and appeals to financial freedom and independence to attract investors,” the SEC said in a lawsuit filed in the Southern District of Florida.
The petitioners say NovaTech “lured investors” by saying the funds would be invested in cryptocurrencies and forex markets, but instead NovaTech paid out most of those investment funds to existing investors, paid commissions to promoters, and spent millions of dollars on itself, the SEC said.
“NovaTech and Petions have caused untold losses to tens of thousands of victims around the world,” Eric Warner, director of the SEC’s Fort Worth District Office, said in a statement. “As we allege, MLM frauds of this scale require promoters to facilitate them, and today’s action demonstrates that not only the primary architects of these massive frauds, but also the promoters who illegally lured victims into perpetuating the fraud, will be held accountable.”
The SEC charged NovaTech, Petions, Zizi, Dunbar, Corbett, and Sampson with violating anti-fraud regulations and all defendants with violating registration requirements.
According to the statement, Jiji agreed to a partial settlement without admitting or denying the allegations.
New York Attorney General Letitia James previously said: I sued Cynthia Petion and her husband Eddie Petion, along with others, were indicted in June on charges of defrauding thousands of investors.
According to the SEC, NovaTech collapsed in May 2023, with most investors unable to withdraw their investments.
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