NovaTech FX has acquired a securities fraud stop and desist from Wisconsin’s Division of Monetary Establishments.
DFI’s discover particulars allegations of fraud, and consists of proposed restitution and civil penalty orders.
DFI’s April 4th order lists Cynthia Petion, Eddie Petion, Nova Tech Ltd and Paul J. DeRenzo as respondents.
- Cynthia and Eddy Petion personal and function NovaTech FX
- Nova Tech Ltd is a shell firm integrated in St. Vincent and Grenadines
- Paul J. DeRenzo is a NovaTech promoter from Pittsburgh, Pennsylvania
As a matter of due-diligence, the order opens by citing the Petions monetary historical past.
In or about 2011, Cynthia and Eddie Petion filed for Chapter 7 chapter in the USA Chapter Court docket for the Jap District of New York.
In or about August 2019, a debt purchaser sued Cynthia Petion within the Circuit Court docket of the Fifteenth Judicial Circuit in Palm Seashore County, Florida, Civil Division, for breach of contract and unjust enrichment, alleging that Cynthia Petion had failed and/or refused to repay a mortgage.
In or about July 2018, a mortgage lender sued Eddie Petion and Cynthia Petion within the Circuit Court docket of the Fifteenth Judicial Circuit in and for Palm Seashore County, Florida, Civil Division, in an motion to foreclose a defaulted mortgage on residential actual property held by Eddie Petion and Cynthia Petion.
In or about April 2018, a bank card issuer sued Cynthia Petion within the Circuit Court docket of the Fifteenth Judicial Circuit in and for Palm Seashore County, Florida, for account acknowledged and unjust enrichment.
A judgment was entered in opposition to Cynthia Petion within the quantity of $11,776.
In or about October 2017, a bank card issuer sued Eddie Petion within the County Court docket in and for Palm Seashore County Florida, for account acknowledged.
A judgment was entered in opposition to Eddie Petion within the quantity of $4,740.56.
The order additionally cites NovaTech FX regulatory warning from Russia, British Columbia (Canada) and California.
Unlawful conduct detailed in DFI’s order begins with promotion of NovaTech FX by Paul DeRenzo (proper).
DeRenzo promoted NovaTech on Craigslist;
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A Wisconsin resident, aliased “ME” within the order, responded to DeRenzo’s advert on November sixteenth, 2022.
DeRenzo contacted ME by way of telephone and directed him to a Zoom presentation, held later that very same day.
On the Zoom presentation DeRenzo pitched NovaTech FX as an “nearly 3% every week” passive funding alternative.
Nova Tech’s common weekly return for traders was nearly 3% every week, and a chart displaying no losses by any means.
DeRenzo instructed ME that even throughout within the weeks when cryptocurrency misplaced worth, Nova Tech traders nonetheless received paid as a result of Nova Tech’s merchants “generate profits when the market goes up, down or sideways”.
Nova Tech had purportedly managed funds for traders which had purportedly earned 131 p.c to date in 2022.
DeRenzo stated crypto went up in January, however is now down, however the Nova Tech merchants at all times made cash for traders.
On December 1st ME queried DeRenzo on California’s NovaTech FX securities fraud stop and desist.
DeRenzo instructed ME has was conscious of the order and the fraud allegations however didn’t elaborate additional or present any extra info.
DFI moreover notes that neither NovaTech FX or any of its promoters knowledgeable ME of the Petions authorized historical past, NovaTech FX’s regulatory issues, and that not one of the Respondents have been registered to supply or promote securities in Wisconsin.
Nova Tech posted quite a few movies to YouTube that includes Cynthia and Eddie Petion representing to viewers that Nova Tech was registered as a hedge fund, broker-dealer, and funding adviser between 2020 and 2022.
Nova Tech printed posts to its Telegram account representing that it was a registered hedge fund on or about Might 4, 2022.
As a part of their investigation, DFI has established NovaTech FX traders in Wisconsin quantity “no less than 270”.
Pursuant to (Wisconsin state legislation), an funding contract safety consists of an funding in a standard enterprise with the expectation of income to be derived via the important efforts of somebody apart from the investor.
It’s illegal for an individual, in reference to the provide, sale, or buy of a safety, immediately or not directly, to make an unfaithful assertion of a fabric truth or to omit to state a fabric truth obligatory to be able to make the statements made, in mild of the circumstances underneath which they have been made, not deceptive.
The funding packages supplied by (NovaTech FX) are funding contract securities pursuant to (Wisconsin state legislation), as a result of Nova Tech traders’ funds have been to be managed by third social gathering merchants to generate income buying and selling cryptocurrency and foreign exchange for the traders with none energetic involvement by the traders.
Nova Tech, Eddie Petion, and Cynthia Petion, violated (Wisconsin state legislation) after they supplied securities in Wisconsin and omitted to state materials info essential to make the statements made.
Nova Tech, Eddie Petion, and Cynthia Petion, violated (Wisconsin state legislation) after they supplied securities in Wisconsin and made misrepresentations of fabric truth, together with however not restricted to the representations that NovaTech was registered as a hedge fund, broker-dealer, and funding advisor when it had by no means been registered in any of these capacities.
Not one of the above Respondents have ever been registered to supply or promote securities with the Division, Securities and Alternate Fee (SEC), or the Monetary Regulatory Authority (FINRA).
Because of the alleged securities fraud violations, DFI has ordered NovaTech FX and the Petions to
stop and desist from making or inflicting to be made to any particular person or entity in Wisconsin any additional provides or gross sales of securities … till such securities qualify as coated securities or are registered.
Restitution has been ordered for all NovaTech FX Wisconsin traders. The Petions are additionally required to pay a $50,000 civil penalty.
Nova Tech Ltd, Cynthia Petion and Eddie Petion shall pay restitution inside 30 calendar days of the issuance of this order and supply the Division with proof of the restitution to the Wisconsin traders by no later than 30 days after restitution has been paid.
It’s additional proposed that an order be issued imposing a civil penalty in opposition to Nova Tech Ltd, Cynthia Petion, and Eddie Petion, within the type of an administrative evaluation totaling $50,000 for the violations dedicated pursuant to (Wisconsin state legislation).
The civil penalty is contingent on NovaTech FX paying restitution to Wisconsin primarily based residents.
Lastly, NovaTech FX might be required to pay DFI for prices associated to its investigation. That quantity is to be decided at a later date.
NovaTech FX and the Petions have 30 days to request a listening to to problem DFI’s allegations. In the event that they fail to take action, the proposed orders develop into everlasting.
Failure to stick to DFI’s order is a prison offense underneath Wisconsin state legislation.
To the most effective of my data, NovaTech FX has not knowledgeable traders of DFI’s stop and desist order.
BehindMLM recognized NovaTech FX’s securities fraud again in 2019. In February 2023, NovaTech FX collapsed.
Since then restricted withdrawals are being paid underneath more and more restrictive situations. NovaTech FX’s weekly returns have dropped from “nearly 3% every week” to a fraction of a p.c.
As of March 2023, SimilarWeb estimated 72% of NovaTech FX’s web site site visitors originated out of the US. Whether or not the Petions are nonetheless within the US has been unclear since late 2022.
Securities legislation within the US is materially the identical on the state and federal degree. BehindMLM anticipates federal securities and wire fraud prices might be filed in opposition to NovaTech FX sooner or later.