Cynthia Petion and her husband Eddy arranged what became one of the largest cryptocurrency fraud schemes in recent years. The couple’s company, NovaTech Ltd., defrauded more than 200,000 investors of over $650 million. They made promises of safe returns and quick access to capital, yet they traded less than $26 million of the investors’ funds.

The news about Petion’s scheme sent shockwaves through the financial community. Their operation showed investors impressive growth in account balances from 2019 to 2023. By May 2023, these balances reached over $3 billion, despite downturns in cryptocurrency markets. The facade crumbled after investors failed to withdraw their funds, which exposed the scheme’s true nature.

Let’s take a closer look at Petion’s identity, NovaTech’s operations, and the regulatory crackdown that followed. The story took a dramatic turn after the couple fled to Panama in June 2022. Their fraudulent empire collapsed behind them, leaving thousands of investors with devastating financial losses.

The Rise of Cynthia Petion

Cynthia Petion’s rise to infamy through cryptocurrency ventures came after years of building her business and marketing foundation. Her transformation from a corporate professional to “Reverend CEO” ended up leading to one of the biggest cryptocurrency fraud cases we’ve seen recently.

Early career and background

Cynthia Petion started her professional life at the State University of New York, graduating with a bachelor’s degree in business administration in 1995. Some sources say she got a psychology degree from SUNY Stony Brook instead.

She branded herself as a business development expert with 20+ years of experience helping companies grow into multi-million and multi-billion dollar enterprises. Her professional profiles claim she ranked in the top 2% of sales positions at companies, some supposedly among Fortune 1000 businesses.

Her work experience covered several areas:

• Product management
• Business development
• Sales and training
• Leadership positions

Beyond her business career, she fostered a religious identity and became an ordained reverend in 2019. Religion soon became the cornerstone of her marketing strategy. Her website TheReverendCEO.com provided mentorship for both business and personal growth.

While projecting success, her personal story revealed struggles. “I married young, divorced, and married again later in life. I lost everything after racking up more debt than I could pay only to make millions of dollars a few years later,” she shared in one profile.

Her family history shaped her story and influenced which communities she later targeted. She was a first-generation American, born to Haitian immigrants who came to the United States during the 1960s.

Involvement in AWS Mining

Her cryptocurrency schemes began when she and her husband Eddy Petion promoted AWS Mining PTY Ltd, an Australian company that later caught regulators’ attention.

They promised investors incredible returns – 15 to 20 percent monthly profits and up to 200 percent returns within 15 months. The scheme rewarded people for bringing in new investors, creating the multi-level marketing approach that became Petion’s trademark.

The scheme couldn’t last. Texas State Securities Board stepped in, accusing AWS Mining of misleading investors with false statements. The company collapsed in 2019, leaving investors millions of dollars poorer after trusting the Petions’ promises.

Transition to NovaTech

Right after AWS Mining’s collapse, she launched NovaTech Ltd., calling herself the “Reverend CEO”. She claimed the idea came as a “vision from God” while brushing her teeth one morning.

Rather than hiding from AWS’s failure, she pitched NovaTech as a chance for former AWS investors to get their money back. Investigators later called it a “near-identical cryptocurrency scheme”.

NovaTech became Petion’s business philosophy in action. “After doing a lot of research, we couldn’t find anything in the market that we felt represented our values or how we thought a business should be run. So, rather than trying to find a company that fit our business ideals, we decided to develop our own company and do it how we felt it should be done—correctly,” she stated.

The Petions focused on minority communities, especially Haitian Americans, using Cynthia’s cultural background. Prayer groups and WhatsApp chats featured Creole advertisements mixed with religious messages.

Her blend of religious authority and promises of financial salvation helped her move from promoting others’ schemes to running her own. This shift created what grew into an alleged billion-dollar fraud operation, catching the eye of regulatory agencies across North America.

What Was NovaTech and How Did It Work?

NovaTech Ltd., registered in Saint Vincent and the Grenadines, presented itself as a sophisticated cryptocurrency and forex trading platform that promised exceptional returns through what they called expert trading strategies. Cynthia Petion’s leadership created a facade of legitimacy while running what regulators found to be a massive fraudulent scheme.

Overview of NovaTech Ltd

NovaTech was incorporated in Saint Vincent and the Grenadines and ran its operations through www.novatechfx.com. Cynthia Petion, as the sole shareholder, director, and Chief Executive Officer, managed to keep complete control over the operation. The company positioned itself as a legitimate crypto asset and forex trading platform from 2019 through 2023.

Their business model mixed investment services with multi-level marketing. NovaTech claimed they made profits by trading pooled investor funds in cryptocurrency and foreign exchange markets. They also gave substantial referral bonuses to existing investors who brought in new participants.

Investors put over one billion dollars in cryptocurrency into NovaTech. The platform actually traded less than $26 million. This huge gap between claimed and actual trading activity became the foundation of what regulators identified as a classic Ponzi scheme.

The PAMM account model

Cynthia Petion’s NovaTech operation centered on the Percentage Allocation Management Module (PAMM) account system. They marketed this as a “unique product” that helped inexperienced investors earn returns without trading themselves. Here’s how they claimed it worked:

1. Investors deposited cryptocurrency (USDT, Bitcoin, Ether, or Litecoin) into their NovaTech accounts
2. These funds went into “master trading accounts” supposedly run by “experienced traders and bots”
3. Each invested dollar became a new unit in the pooled fund
4. Returns went to investors based on their contribution

NovaTech’s attention was drawn to people with little to no trading experience. They stressed that their “fully automated” investment products let anyone “earn without having to trade” and that “no experience is needed”. This removed any barrier to entry while promising professional-level returns.

The company charged a $25 monthly account management fee and took 30 percent of trading profits. These fees added another revenue stream beyond the investment funds.

Promises of weekly ROI

NovaTech’s appeal came from its promise of consistent, impressive returns whatever the market conditions. They said investors could expect about 3% weekly returns – an extraordinary rate that would grow to over 350% yearly if maintained.

Simple line charts showed supposed weekly profits and losses over time, with a bar graph of monthly profits backing these claims. The charts showed NovaTech had “never incurred a weekly loss”, which went against the natural ups and downs of cryptocurrency and forex markets.

Petion made bold claims in promotional videos: “I have people who started with USD 99.00 accounts and are now buying Mercedes and living in nice houses they would have never lived in”. These stories helped develop an image of guaranteed success that drew thousands of investors.

Use of religious and cultural messaging

Cynthia Petion used religious ideology and cultural connections to promote NovaTech. She called herself the “Reverend CEO” and often said NovaTech was “God’s vision”, weaving religious elements through the company’s messages.

The Petions focused on minority communities, especially Haitian-Americans, through prayer groups and WhatsApp chats. Their ads in Haitian Creole and religious messages appealed to these communities’ faith traditions.

This strategy built trust in specific demographic groups where community ties and shared faith created natural trust. By wrapping the investment chance in religious language, Petion made skepticism look like doubt in both the business and divine guidance.

The company ran for nearly four years before its collapse in May 2023, leaving tens of thousands of investors unable to get their cryptocurrency back.

Unpacking the Allegations Against NovaTech

The Securities and Exchange Commission (SEC) has accused Cynthia Petion and NovaTech of running a massive fraudulent scheme. Their operation targeted thousands of unsuspecting investors and raised more than $650 million from over 200,000 investors worldwide.

Unregistered securities and licensing issues

The government’s case against Cynthia Petion NovaTech centers on the company’s illegal offering of unregistered securities. The SEC’s complaint charges NovaTech and its operators with violating securities-registration provisions of Sections 5(a) and 5(c) of the Securities Act. NovaTech’s investment products met all criteria of the Howey Test—a Supreme Court framework that determines what makes a security.

Neither Cynthia Petion nor NovaTech registered with the SEC or filed required prospectus documentation. The Ontario Securities Commission discovered that “Nova Tech was not registered in any capacity with the Commission and did not file a prospectus for the PAMM product”.

The top promoters—Zizi, Dunbar, Corbett, Sampson, Garofano, and Hadley—faced charges for violating broker-registration provisions of Section 15(a) of the Exchange Act. They acted as unregistered brokers while recruiting investors and earned substantial commissions.

Misleading marketing and ROI claims

Regulators have exposed many deceptive practices in Cynthia Petion NovaTechFX’s marketing approach. She told potential clients that “in this program, you are in profit from day one, because again you have access to that capital”. The company promised extraordinary returns of 2-3% weekly—over 350% annually—a return rate that legitimate trading cannot sustain.

The SEC’s investigation found a huge gap between promises and reality. Only a small portion of the $650 million raised went into actual trading. That limited amount faced “significant trading losses”, which contradicted NovaTech’s claims of never losing money weekly.

The operation ran like a classic Ponzi scheme. The SEC claims that “NovaTech used the majority of investor funds to make payments to existing investors and to pay commissions to promoters”. The Petions also “siphoned millions of dollars of investor assets for themselves”.

Affinity fraud targeting Haitian communities

The scheme’s targeting of ethnic and religious communities stands out as particularly troubling. The SEC noted that the scheme collected funds from “many in the Haitian-American community”. New York Attorney General Letitia James explained that the company “targeted immigrant communities, particularly Haitian New Yorkers, in prayer groups and through social media and WhatsApp group chats”.

The Petions exploited cultural and religious connections within vulnerable communities. Cynthia Petion, who called herself the “Reverend CEO,” used “religious overtones” to attract investors. This created trust based on shared cultural identity and religious values.

The allegations against Cynthia Petion and NovaTech show a calculated scheme that exploited trust while breaking laws. The ongoing SEC proceedings show how cryptocurrency-based affinity fraud threatens vulnerable communities.

Regulatory Crackdown and Legal Actions

NovaTech’s global expansion triggered decisive action from regulatory authorities in multiple countries. A coordinated crackdown began in early 2023, when agencies from the United States, Canada, and other nations started legal proceedings against Cynthia Petion’s enterprise.

SEC charges and civil penalties

The Securities and Exchange Commission filed a complete lawsuit against NovaTech Ltd., Cynthia and Eddy Petion, and six top promoters in August 2024. The U.S. District Court for the Southern District of Florida received charges related to raising more than $650 million from over 200,000 investors worldwide.

The SEC’s complaint listed several federal securities law violations:

• Antifraud provisions of Section 17(a) of the Securities Act of 1933 against NovaTech, the Petions, and four promoters
• Antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 against the company, the Petions, and several promoters
• Securities-registration violations under Sections 5(a) and 5(c) of the Securities Act against all defendants
• Broker-registration violations of Section 15(a) of the Exchange Act against the six promoters

Most defendants fought the charges, but promoter Martin Zizi agreed to a partial settlement. He consented to a $100,000 civil penalty and permanent injunction against future violations. The SEC pursued permanent injunctive relief, disgorgement of ill-gotten gains, and additional civil penalties for other defendants.

State-level cease and desist orders

State regulators started targeting Cynthia Petion’s NovaTechFX operations before the SEC’s formal lawsuit. Several states issued cease and desist orders throughout 2022 and early 2023.

The California Department of Financial Protection and Innovation took the first step on November 22, 2022. They issued a Desist and Refrain Order against NovaTech, its affiliates, and the Petions. This action included securities fraud allegations and sparked increased scrutiny from other state regulators.

Wisconsin authorities followed in April 2023. They issued a summary order that required NovaTech, Cynthia Petion, and Eddy Petion to stop selling securities to Wisconsin residents. The order also revoked NovaTech’s registration exemptions.

More states joined the legal battle. The Washington State Department of Financial Institutions and other agencies pursued their own legal remedies. New York Attorney General Letitia James sued the cryptocurrency trading company to ban NovaTech and its founders from New York operations and secure disgorgement and damages.

Ontario and international regulatory responses

Canadian authorities stepped up to protect investors from NovaTech’s operations. The Ontario Securities Commission (OSC) issued a temporary cease trade order on February 16, 2023. The Capital Markets Tribunal extended this order twice.

The Canadian Securities Administrators (CSA) warned the public that NovaTech lacked registration with any Canadian securities regulator. They emphasized that the company “may be operating in breach of provincial and territorial securities and derivatives law”.

The Capital Markets Tribunal published its findings against NovaTech in July 2024. They concluded the company had:

• Traded without registration, violating Section 25(1) of the Act
• Distributed securities without a prospectus against Section 53(1)[183]
• Violated Ontario securities law by breaching the temporary cease trade order[183]

International regulators also recognized NovaTech’s threat. The Central Bank of Russia issued a securities fraud warning about NovaTech and the Petions on August 9, 2022. The British Columbia Securities Commission followed with their own fraud warning on October 11, 2022.

Regulators continue their investigations to recover funds for defrauded investors. The Petions reportedly moved to Panama, but legal proceedings move forward. Ontario’s Capital Markets Tribunal plans additional hearings about sanctions and costs.

The Fallout: Investor Losses and Platform Collapse

NovaTech’s downfall became apparent in early February 2023. The company suddenly announced a “temporary freeze” that blocked all trading account withdrawals for 60 days. This unexpected restriction signaled the first clear warning that Cynthia Petion’s operation was falling apart.

Withdrawal restrictions and account freezes

NovaTech told investors they couldn’t touch their funds for two months starting February 5, 2023. They promised withdrawals would start again on April 1, 2023. That date came and went without any change. Cynthia Petion posted a YouTube video on March 31, just one day before the freeze should have ended. She added even tougher rules and said she wouldn’t let April 1 become “D-Day” for NovaTech.

The new rules were shocking:

• People could only withdraw trading funds during the first five days each month
• Money withdrawals were limited to 5% in April, 10% in May, and 15% in June
• Everyone had to pay a 5% fee on all trading withdrawals
• New members couldn’t take out money for 90 days

Investor complaints and financial damage

Victims’ stories showed the devastating effects. One investor who put in over $10,000 learned they could only take out 15% of their money—but they never got anything. Another person who invested about $21,000 managed to get just $17 after trying many times.

NovaTech’s complete collapse in May 2023 left most of its 200,000 investors unable to get their money back. The total losses reached over $650 million. New York alone saw more than 11,000 residents lose tens of millions.

The launch of NovaTech 2.0 and further deception

The scheme took an unbelievable turn on October 25, 2023. A “NovaTech 2.0” platform showed up with a new website (novatechfxuk.com). This version came with a bizarre rule: users had to put in extra money equal to 30% of their account balance before they could withdraw their original investment.

The SEC’s investigation revealed that the Petions used very little of the investor’s money for actual trading. Most of it went to pay earlier investors or ended up in the Petions’ personal accounts.

Where Is Cynthia Petion Now?

The Petions made a calculated escape just as their cryptocurrency empire NovaTech faced mounting regulatory pressure in 2022. Their quick exit from the United States happened right when their business showed the first signs of crumbling.

Relocation to Panama

The Petions’ timing couldn’t have been more suspicious. They quietly sold their Florida home and fled to Panama in 2022 when NovaTech started having its biggest problems. Their move put them safely out of U.S. authorities’ reach, right before their business fell apart completely. They settled in Panama exactly when regulators across several states started issuing cease-and-desist orders against their operation.

Ongoing investigations and lawsuits

Cynthia Petion now faces major legal battles on multiple fronts. The SEC asked U.S. District Judge Cecilia M. Altonaga in Miami to stop the Petions from further violations and demanded they return their illegally obtained profits. Evidence shows that Cynthia Petion moved at least $40 million in crypto assets from NovaTech to accounts she and her husband owned.

On top of that, investors launched a massive $2 billion civil lawsuit against the Petions in early 2024 to get their money back. Regulatory actions continue across different jurisdictions as authorities work to hold the Petions responsible for their alleged fraud.

Public silence and media coverage

Cynthia Petion stayed quiet through this legal storm, except for one time. After investors filed the $2 billion lawsuit, she posted on Instagram claiming she “worked diligently” to return investors’ money. Her message read: “Every day we are working diligently to address this issue and ensure the continued trust and satisfaction of our customers. If your funds are still held within our platform, we encourage you to reach out to us directly so that we can process your payout manually.”

The post drew dozens of angry responses from investors who had tried messaging NovaTech about their funds for months without any reply. Most victims still can’t get their money back since the company’s collapse in May 2023 left them locked out of their accounts.

Conclusion

The NovaTech story serves as a stark reminder of how cryptocurrency fraud can destroy communities and ruin individual investors. NovaTech looked legitimate on the surface but ended up being exposed as a Ponzi scheme. The scam left more than 200,000 investors with losses of over $650 million. The fraudsters specifically targeted minority communities, especially Haitian-Americans. They used religious messaging to exploit cultural connections and trust.

Law enforcement agencies of all sizes have taken strong action against this fraud. The SEC filed charges, states issued cease and desist orders, and international regulators responded swiftly. These coordinated efforts show how seriously authorities take cryptocurrency-based investment scams.

Everything fell apart when NovaTech started restricting withdrawals. The restrictions got tighter until investors couldn’t access their money at all. Many victims couldn’t withdraw even small amounts of their investments. The Petions moved at least $40 million to their personal accounts before escaping to Panama.

This case warns investors about deals that sound too good to be true. The Petions promised 2-3% weekly profits – that’s over 350% annually. These numbers should have been an immediate warning sign. Investors need to do their homework before putting money into any investment platform. This is especially true when returns are way above market averages.

Legal action against Cynthia Petion and NovaTech continues as authorities try to recover the remaining funds. The Petions may be hiding in Panama now, but the $2 billion civil lawsuit and SEC’s ongoing investigation show that justice might catch up with them. Sadly, most investors probably won’t get their money back. This makes their story even more relevant in today’s digital world.

FAQs

Q1. What was NovaTech and how did it operate? NovaTech was a cryptocurrency and forex trading platform that promised high returns through a PAMM (Percentage Allocation Management Module) account system. It claimed to pool investor funds for expert trading but actually operated as a Ponzi scheme, using new investments to pay earlier investors.

Q2. How much money did investors lose in the NovaTech scheme? Investors lost over $650 million in the NovaTech scheme, with more than 200,000 people affected worldwide. The majority of these investors were unable to recover their funds when the platform collapsed in May 2023.

Q3. What legal actions have been taken against Cynthia Petion and NovaTech? The SEC has filed a lawsuit against NovaTech, Cynthia Petion, and others for securities law violations. Additionally, multiple states have issued cease and desist orders, and international regulators like the Ontario Securities Commission have taken action to protect investors.

Q4. How did NovaTech target specific communities? NovaTech specifically targeted minority communities, particularly Haitian-Americans, through prayer groups and social media. They used religious messaging and cultural connections to build trust, marketing their investment opportunity in Haitian Creole.

Q5. Where are Cynthia Petion and her husband now? Cynthia Petion and her husband reportedly relocated to Panama in 2022, just before NovaTech’s collapse. They are currently facing ongoing investigations and lawsuits, including a $2 billion civil lawsuit filed by investors attempting to recover their losses.