The U.S. Securities and Exchange Commission has filed a lawsuit against NovaTech and its founders for defrauding over $650 million from 200,000+ investors globally.
NovaTech, led by Cynthia and Eddy Petion, allegedly misused investor funds, paying early investors and siphoning millions for personal gain.
The Petions promised safety and guaranteed profits from day one, but instead used new funds to repay earlier investors.
The fraudulent scheme lasted four years, culminating in NovaTech's collapse earlier this year, leading to increased scrutiny
Before the SEC lawsuit, New York AG Letitia James had already sued NovaTech, estimating the fraud at over $1 billion.
NovaTech’s founders used social media and religious appeals, including Haitian Creole, to gain trust and attract investors.
Cynthia Petion presented herself as 'Reverend CEO,' claiming NovaTech was 'God’s vision,' to further mislead investors.
The SEC also charged six NovaTech promoters, accusing them of continuing to recruit despite warning signs of fraud.
Lawsuits seek restitution for victims and civil fines. Martin Zizi, a promoter, has agreed to a $100,000 fine."
The case is SEC v Nova Tech Ltd, U.S. District Court, Southern District of Florida, No. 24-23058. The outcome remains pending.