In a bold legal move, the U.S. Securities and Exchange Commission (SEC) has initiated a lawsuit against the cryptocurrency firm NovaTech and its founders, Cynthia and Eddy Petion. The SEC alleges that the company orchestrated a massive global fraud, amassing over $650 million from more than 200,000 investors, including many from the Haitian-American community.
According to the SEC, NovaTech promised investors substantial profits and financial security from day one. However, the Petions are accused of using funds from new investors to pay off earlier ones and to enrich themselves, while also making payments to promoters. The fraudulent operation allegedly continued for four years, ending with NovaTech’s collapse in May 2023.
The lawsuit, filed in Miami federal court, follows a similar action taken by New York Attorney General Letitia James, who had previously filed a state court case in Manhattan with claims exceeding $1 billion. The SEC’s filing highlights that NovaTech used religious appeals and social media platforms to lure victims, with Cynthia Petion even styling herself as a “Reverend CEO” and promoting NovaTech as a “divine vision.”
In addition to the Petions, the SEC has charged six NovaTech promoters with fraud. These individuals are accused of continuing to recruit investors despite evident “red flags,” such as withdrawal delays and regulatory warnings from the U.S. and Canada. One promoter, Martin Zizi, has agreed to a $100,000 civil fine.
Both lawsuits aim to secure restitution for the victims and impose civil penalties. The case is registered as SEC v Nova Tech Ltd in the U.S. District Court, Southern District of Florida.
