NovaTech FX has been issued a brief stop commerce order by the Ontario Securities Fee.
OSC’s order follows a NovaTech FX securities fraud warning final December.
The order additionally cites NovaTech FX’s Ponzi collapse earlier this month (recruitment commissions are nonetheless being paid out, albeit delayed).
NovaTech operates the web site www.novatechfx.com (Web site), which seems to supply securities as outlined in s. 1(1) of the Securities Act.
Returns on funding are purportedly paid on a weekly foundation from the “fruits of earnings comprised of the buying and selling exercise that came about through the week”.
The NovaTech web site consists of efficiency reviews exhibiting weekly efficiency figures of roughly 3% per week.
In early February 2023, NovaTech introduced that it “determined to position a brief freeze in buying and selling account withdrawals for a interval of 60 days”.
However the freeze on withdrawals, NovaTech continued to make its web site and PAMM product out there to Ontario traders and continued to simply accept new funding.
NovaTech has by no means been registered with the Fee in any capability and has by no means filed a prospectus with the Fee.
Whereas the OSC’s investigation into NovaTech’s actions is ongoing, it seems NovaTech could also be working in breach of Ontario securities legislation, together with provisions associated to unregistered buying and selling and the unlawful distribution of securities.
In mild of the continuing investigation into NovaTech FX’s securities fraud, the OSC initiated the fifteen-day stop commerce order on February sixteenth. The OSC reserves the correct to increase the order if required.
As a part of their investigation, the OSC is requesting NovaTech FX victims in Ontario to come back ahead. Contact particulars are supplied on OSC’s web site.
Between a number of regulatory investigations throughout Canada and the US, additional motion is predicted in opposition to NovaTech and founders Cynthia and Eddy Petion.
The Petions are US nationals with ties to New York and Florida. Whether or not they’re nonetheless within the US has been unclear since late 2022.
As of January 2023, Related tracks the US (68%) and Canada (6%) as prime sources of visitors to NovaTech FX’s web site.