New York Legal professional Basic Letitia James has sued NovaTech FX, AWS Mining and Eddie and Cynthia Petion for fraud.
By NovaTech FX and AWS Mining, the NYAG alleges the Petions “defrauded 1000’s of buyers worldwide out of over a billion {dollars}”.
Named defendants within the NYAG’s NovaTech FX fraud case are:
- Nova Tech LTD, St. Vincent and Grenadines shell firm
- NovaTech Advisors LLC, Florida shell firm
- NovaPay LLC, Florida shell firm used to launder NovaTech FX investor funds
- AWS Mining PTY LTD
- Eddy Petion, AWS Mining promoter and proprietor of NovaTech FX
- Cynthia Petion, AWS Mining promoter and proprietor of NovaTech FX
- Martin Zizi, Georgia resident and prime AWS Mining & NovaTech FX promoter with over 140,000 buyers in his downline
- Trinity of Success, Georgia shell firm owned by Martin Zizi and used to launder NovaTech FX funds
- Constructive Imaginative and prescient Advertising LLC, Georgia shell firm owned by Martin Zizi and used to launder NovaTech FX funds
- James Corbett, New York resident and prime AWS Mining & NovaTech FX promoter with over 100,000 in his downline
- Frantz Ciceron, New York resident and prime AWS Mining & NovaTech FX promoter with over 60,000 in his downline
- Kings Multi Providers Company LLC, New York shell firm owned by Frantz Ciceron and used to launder NovaTech FX funds
As per the NYAG’s filed June sixth Grievance, each AWS Mining and NovaTech FX had been MLM crypto Ponzi schemes.
Every was a pyramid scheme the place promoters who invested within the scheme earned cryptocurrency for recruiting others to do the identical.
Cynthia Petion made $3 million from AWS Mining, principally from recruitment bonuses, whereas most buyers recruited by them misplaced nearly everything of their investments.
NovaTech was additionally a Ponzi scheme the place buyers had been promised earnings from cryptocurrency buying and selling however had been paid from
the cryptocurrency belongings of different buyers.
BehindMLM confirmed as a lot in 2018 and 2019, as per our printed AWS Mining and NovaTech FX evaluations.
The Petions went on to launch NovaTech FX after AWS Mining collapsed in 2019.
Defendants falsely marketed NovaTech as “a registered hedge fund dealer” and a monetary advisor, fraudulently misrepresented that NovaTech was licensed to commerce cryptocurrency within the U.S. and foreign exchange overseas.
However Defendants’ representations about NovaTech had been materially false and deceptive. NovaTech was not licensed by any regulatory entity within the U.S. or overseas and didn’t generate earnings from buying and selling adequate to pay the introduced weekly ROI or recruitment bonuses.
As alleged by the NYAG, NovaTech FX defrauded customers out of over a billion {dollars}.
Of that quantity solely $26 million was used to commerce. NovaTech’s precise buying and selling actions generated $18 million in losses.
NovaTech publicized faux efficiency reviews depicting purported weekly buying and selling earnings on the investor portal on its web site
In the meantime all through its run, NovaTech FX’s Ponzi ROI legal responsibility blew out to over $3 billion.
The funds used to pay buyers got here from NovaTech’s wallets at its fee processor and weren’t earnings from buying and selling however funds deposited by different buyers.
When buyers introduced up BehindMLM’s printed due-diligence, they had been faraway from inside group chats.
Defendants Corbett, Zizi, and Ciceron went to nice lengths to guarantee buyers of NovaTech’s legitimacy.
They dismissed allegations that NovaTech was a fraud and a Ponzi scheme and advised buyers to disregard all criticism of NovaTech as “concern, uncertainty, and doubt” emanating from opponents, and a few promoters appealed to the piety of their buyers proclaiming, “Religion over Worry!”
In a January 10, 2023, YouTube interview with Ponzi Patrol, Corbett equally acknowledged that “they’re not working a Ponzi scheme, I do know these individuals, I do know they’re buying and selling with the funds.”
Buyers essential of NovaTech had been summarily faraway from WhatsApp group chats.
Maybe essentially the most egregious declare made about NovaTech FX, was Cynthia Petion endorsing a purported FBI legitimacy report in 2022.
In a September 22, 2022 YouTube video, titled NovaTech CEO Cynthia Petion Solutions Questions, the place Cynthia Petion steered that an FBI agent ready a 700-page report concerning NovaTech’s legitimacy and gave NovaTech a clear invoice of well being.
The video concerning the alleged however now destroyed FBI report declaring NovaTech “ firm” was seen nearly 16,000 occasions.
There after all by no means was an FBI legitimacy report.
As a part of their conspiracy to defraud customers, the Petions focused Haitians and exploited non secular beliefs.
Defendants carried out their schemes by additionally participating in an affinity fraud which focused buyers of Haitian descent, selling the schemes to buyers within the Creole language, and preying on their victims’ non secular religion.
The victims trusted Defendants, most of whom got here from the Haitian group themselves.
Cynthia Petion even went as far as to dub herself “The Reverend CEO”.
The Petions marketed NovaTech FX on the premise it was “God’s imaginative and prescient”.
[Cynthia Petion] proclaimed that “Jesus was … the most effective affiliate marketer on the planet” and declared that “the concept to type Nova Tech got here to me in a imaginative and prescient, a message from God…” and that “actually this got here to me whereas brushing my tooth as a result of [God] likes to talk to me when he thinks I’m listening.”
Nonetheless, in personal chats with Defendant Zizi, Cynthia Petion known as herself the “Zookeeper,” her buyers “a cult,” and rejected Zizi’s suggestion that NovaTech was like a rustic membership:
“In a membership individuals know what they’re signing up for” whereas in NovaTech “individuals be part of and comply with mindlessly… They don’t suppose. They simply agree with the whole lot you say.”
As a part of his efforts to defraud customers, Martin Zizi likened Cynthia Petion to Harriot Tubman.
Defendant Zizi bolstered the concept of Defendant Cynthia Petion being a “visionary” and a hero to his downlines and even likened her to Harriot Tubman releasing individuals from slavery: “Do not forget that Novatech has opened the door to monetary freedom for us.
Cynthia had a imaginative and prescient that has was actuality and has helped 1000’s to see the sunshine and comply with the [trading platform to financial freedom] … Cynthia is our Harriett [Tubman] and thru her imaginative and prescient has created methods throughout the wilderness.”
Zizi and Frantz Ciceron (proper), coined the phrase ““A staff that prays collectively stays collectively & grows collectively.”
NovaTech FX started to break down in 2022, prompting the Petions to flee the US.
In June 2022, Defendants Petion secretly offered their home in Florida and fled to Panama.
Defendant Cynthia Petion wished “everybody to nonetheless suppose we’re in FL,” and advised Defendant Zizi to “depart the nation…they’ll’t serve you if they’ll’t discover you lol.”
Shortly after Defendants Petion left the U.S., the NovaTech scheme started to unravel.
NovaTech FX buyers first skilled withdrawal issues in October 2022. By February 2023 BehindMLM had known as NovaTech FX’s collapse.
NovaTech didn’t return cryptocurrency deposited by buyers and tens of 1000’s of buyers had been left with lots of of tens of millions of {dollars} in losses.
Defendants Petion transferred tens of tens of millions of {dollars}’ price of cryptocurrency out of NovaTech.
Defendants Zizi, Corbett, and Ciceron, individually and thru their entities, made off with tens of millions of {dollars} in recruitment funds and earnings.
Defendant Ciceron invested $7,500 over time and withdrew over $3 million from NovaTech.
Defendant Corbett invested roughly $25,000 over time and withdrew over $800,000 from NovaTech.
Defendant Zizi invested roughly $200,000 over time and withdrew over $3 million from NovaTech.
As NovaTech FX collapsed, Zizi grew bored with his victims complaining and advised them to cease “whining”.
Defendant Zizi advised buyers unable to withdraw to cease “whining” as a result of their cash now belonged to NovaTech:
For these of you with 6 months and older … saying “MY MONEY”. It’s now not “YOUR MONEY”, it’s “THEIR MONEY”. Now, you may say, I didn’t withdraw my seed cash.
Nicely, that’s your alternative, you’ll be able to withdraw it if you would like however you’re the one who determined to depart it there…
Citing a number of violations of New York Basic Enterprise Regulation throughout ten causes of motion, the NYAG has charged the defendants with:
- securities fraud
- commodities fraud
- failure to register (Martin Act)
- operation of a “chain distribution scheme” (Martin Act)
- repeated and chronic fraud and
- repeated and chronic illegality
The NYAG’s Grievance seeks a everlasting injunction towards the defendants, prohibiting additional securities and commodities fraud violations.
Damages, disgorgement, restitution and authorized prices are additionally being sought.
The NYAG’s Grievance suggests defendants Corbett and Zizi are cooperating with NYAG. The Petions stay at giant in Panama.
Along with New York, Washington filed fraud expenses towards NovaTech FX and the Petions final November. It’s anticipated federal expenses associated to NovaTech FX might be filed in some unspecified time in the future.
Whereas the Petions are clearly in hiding, price noting is Panama has had an extradition treaty with the US since 1904.
Pending additional updates, we’ll maintain you posted.