NovaTech FX and homeowners Cynthia and Eddie Petion have been charged with securities fraud in Washington.
A stop and desist order and Assertion of Fees was filed in opposition to NovaTech and the Petions on October twenty seventh.
As per the order, filed by the Securities Division of Washington’s Division of Monetary Establishments (DFI);
The Securities Administrator of the State of Washington has motive to consider that Respondents NovaTech Ltd, Cynthia Petion, and Eddie Petion are violating the Securities Act of Washington.
The Securities Administrator finds it’s within the public curiosity and is important or acceptable for the safety of buyers to enter a abstract order to right away stop and desist from such violations.
Respondents of DFI’s order are
- NovaTech Ltd, a St. Vincent and Grenadines shell firm operated from Royal Palm, Florida
- Cynthia Petion (spouse), a former resident of Royal Palm, Florida whose “current whereabouts are unknown” and
- Eddie Petion (husband), a former resident of Royal Palm, Florida whose “current whereabouts are unknown”
Notice that the order itself doesn’t look like public, therefore the screenshot above. Brandon of the YouTube channel Ponzi Patrol despatched the order in, which I’m quoting straight from.
NovaTech FX is an MLM buying and selling bot ruse Ponzi scheme operated via cryptocurrency.
NovaTech FX formally collapsed in February 2023. The Petions nonetheless went into hiding in late 2022.
As a part of NovaTech FX’s securities fraud, DFI notes
Cynthia Petion, Eddie Petion, and NovaTech are typically soliciting buyers to buy unregistered securities within the type of proportion allocation administration module accounts (“PAMM Accounts”).
The supply and/or sale of the PAMM accounts described above constitutes the supply and/or sale of a safety as outlined in RCW 21.20.005(14) and (17).
NovaTech, Cynthia Petion, and Eddie Petion are publicly promoting the funding on social media platforms comparable to Fb, Instagram, and Telegram.
Over 1,000 Washington buyers are believed to have invested with NovaTech, Cynthia Petion, and Eddie Petion.
NovaTech isn’t at present registered to promote its securities within the state of Washington and has not beforehand been so registered. Nor has it filed a declare of exemption from registration.
Cynthia Petion isn’t at present registered as a securities salesperson or broker-dealer within the state of Washington and has not beforehand been so registered.
Eddie Petion isn’t at present registered as a securities salesperson or broker-dealer within the state of Washington and has not beforehand been so registered.
NovaTech Ltd, Cynthia Petion, and Eddie Petion violated RCW 21.20.140, the securities registration part of the Securities Act of Washington, by providing and/or promoting securities for which no registration is on file with the Securities Administrator.
Cynthia Petion and Eddie Petion violated RCW 21.20.040, the licensee registration part of the Securities Act of Washington, by providing and/or promoting stated securities whereas not being registered as a securities salesperson or broker-dealer within the state of Washington.
NovaTech Ltd, Cynthia Petion, and Eddie Petion violated RCW 21.20.010, the anti-fraud part of the Securities Act of Washington, by making unfaithful statements of fabric truth or omitting to state materials info essential to make the statements made, in mild of the circumstances wherein they had been made, not deceptive.
Disclosure failings are a part of the filed prices;
Respondents are failing to speak in confidence to buyers materials data associated to the funding, together with
-basic details about NovaTech’s monetary situation, enterprise, operations, and administration;
-information about Cynthia and Eddie Petion’s chapter filings and civil judgments;
-information about state actions taken in opposition to NovaTech and Cynthia and Eddie Petion; and
-a affordable foundation for NovaTech’s income projections.
DFI’s prices additionally notice a “NovaTech 2.0” reboot, nonetheless I consider this can be a restoration rip-off separate from the Petions’ NovaTech FX Ponzi scheme.
On account of NovaTech FX’s securities fraud in Washington, DFI’s order, issued on an emergency foundation, orders NovaTech FX and the Petions to
stop and desist from providing and/or promoting securities in any method in violation of RCW 21.20.140, the securities registration part of the Securities Act of Washington.
IT IS FURTHER SUMMARILY ORDERED that Respondents … shall every stop and desist from providing and/or promoting securities in any method in violation of RCW 21.20.040, the registration part of the Securities Act of Washington.
IT IS FURTHER SUMMARILY ORDERED that Respondents … shall every stop and desist from violating RCW 21.20.010, the
anti-fraud part of the Securities Act of Washington.
DFI goes on to element its intent to impose fines, constituting $50,000 every for NovaTech FX, Cynthia and Eddie Petion ($150,000 complete). Authorized prices of $8500 are additionally cited.
NovaTech FX and the Petions have a set time period to answer DFI’s order, failing which it is going to be enacted.
Continued violation of the order does represent a felony offense in Washington, however is unlikely attributable to NovaTech FX’s collapse.
Along with Washington, California and Wisconsin have additionally issued NovaTech FX securities fraud warnings. Wisconsin fined NovaTech FX and the Petions $50,000.
Outdoors of the US NovaTech FX has acquired a number of securities fraud warnings from Russia and Canada.