NovaTech FX has been issued a securities fraud stop and desist by California’s Division of Monetary Safety & Innovation (DFPI).
The discover marks the primary regulatory motion towards NovaTech FX by a US regulator.
DFPI’s November twenty second stop and desist applies to:
- NovaTech LTD (St. Vincent & Grenadines shell firm);
- NovaTech Advisors LLC (Florida firm);
- NovaPay LLC (Florida firm);
- NovaTrading OU (Estonian shell firm);
- Cynthia Petion (US-based NovaTech FX co-founder and CEO); and
- Eddy Petion (US-based NovaTech FX co-founder)
Following an inside investigation, DFPI concluded NovaTech FX is committing securities fraud.
The Packages provided by NovaTech, Cynthia Petion, and Eddy Petion had been securities that had been neither certified nor exempt from the qualification requirement beneath the CSL.
The Division has not issued a allow or different type of qualification authorizing NovaTech, Cynthia Petion, or Eddy Petion to promote these securities in California.
In reference to the supply or sale of those securities, NovaTech, Cynthia Petion, and Eddy Petion made, or prompted to be made, unfaithful statements of fabric reality and materials omissions to traders and potential traders, together with however not restricted to the next:
a. falsely representing that NovaTech is a registered hedge fund in the US;
b. falsely representing that NovaTech is a registered funding adviser;
c. falsely representing that NovaTech is a registered dealer;
d. failing to reveal that the supply or sale of NovaTech’s securities was not certified in California;
e. failing to offer any {qualifications} to substantiate claims that traders’ funds are managed and traded by skilled merchants;
f. failing to reveal that in March 2011, Cynthia Petion and Eddy Petion filed for Chapter 7 chapter in the US Chapter Courtroom for the Japanese District of New York;
g. failing to reveal that in August 2019, a debt purchaser sued Cynthia Petion within the Circuit Courtroom of the Fifteenth Judicial Circuit in and for Palm Seaside County, Florida, Civil Division, for breach of contract and unjust enrichment, alleging that Cynthia Petion had failed and/or refused to repay a mortgage;
h. failing to reveal that in July 2018, a mortgage lender sued Eddy Petion and Cynthia Petion within the Circuit Courtroom of the Fifteenth Judicial Circuit in and for Palm Seaside County, Florida, Civil Division, in an motion to foreclose a defaulted mortgage on residential actual property held by Eddy Petion and Cynthia Petion;
i. failing to reveal that in April 2018, a bank card issuer sued Cynthia Petion within the Circuit Courtroom of the Fifteenth Judicial Circuit in and for Palm Seaside County, Florida, Civil Division, for account acknowledged and unjust enrichment.
A judgment was entered towards Cynthia Petion within the quantity of $11,776.55; and
j. failing to reveal that in October 2017, a bank card issuer sued Eddy Petion within the County Courtroom in and for Palm Seaside County, Florida, for account acknowledged. A judgment was entered towards Eddy Petion within the quantity of $4,740.56.
DFPI goes to substantiate that not one of the NovaTech FX corporations, or the Petions, are registered to supply securities in California.
Pursuant to Companies Code part 25532, Nova Tech Ltd. a/ok/a NovaTech, Ltd., NovaTech Advisors, LLC, NovaPay, LLC, NovaTrading OÜ, Cynthia Petion, and Eddy Petion are hereby ordered to desist and chorus from the additional supply or sale of securities in California, together with however not restricted to funding contracts referred to as Packages, except and till the qualification necessities of the CSL have been met.
Pursuant to Companies Code part 25403, any one who controls or induces one other individual to violate a provision of the Company Securities Legislation of 1968, or any one who gives substantial help to a different individual in violation of the Company Securities Legislation of 1968, shall be chargeable for the violations.
DFPI identifies NovaTech FX’s enterprise mannequin as a Excessive Yield Funding Program (HYIP).
NovaTech was luring traders into what is called a Excessive Yield Funding Program (HYIP).
HYIPs are unregistered investments sometimes run by unlicensed people – and are sometimes frauds. The hallmark of an HYIP rip-off is the promise of excessive returns on an annual (and even month-to-month, weekly, or every day) foundation at little or no threat to the investor.
HYIPs are MLM underbelly code for “Ponzi scheme”. BehindMLM reviewed NovaTech FX in 2019, additionally concluding it was a Ponzi scheme.
DFPI’s stop and desist all however confirms NovaTech FX is probably going beneath investigation on the federal degree.
Securities within the US are regulated by the SEC, with which NovaTech FX can be not registered.
SimilarWeb tracked over 2.5 million visits to NovaTech FX’s web site in October 2022. ~66% of NovaTech FX’s web site site visitors comes from the US.
Final month Cynthia Petion endorsed the declare NovaTech FX had been audited and permitted by the FBI.
When the inevitable NovaTech FX SEC fraud lawsuit drops, it’ll be attention-grabbing to see whether or not the DOJ information parallel wire fraud and cash laundering prices.
Along with California, NovaTech FX has acquired securities fraud notices from Russia and British Columbia, Canada.