The U.S. Securities and Exchange Commission (SEC) has charged the founders of NovaTech Ltd., Cynthia and Eddie Petion, with running a fraudulent scheme that raised more than $650 million in cryptocurrency from over 200,000 investors worldwide. According to the SEC, NovaTech was registered as a pyramid scheme in St. Vincent and the Grenadines, promising investors significant returns from cryptocurrency and forex trading, while most of the funds were used to pay off older investors with new investors’ money.
In addition to the founders, several company promoters, including Martin Zizi, Dapilin Dunbar, James Corbett, Corry Sampson, John Garofano, and Marsha Hadley, were also charged for their roles in promoting the scheme and attracting new investors. The SEC alleges that the promoters knowingly ignored clear signs of fraud and continued to lure new victims despite regulatory warnings in the U.S. and Canada.
The SEC is seeking to ban further activities by the accused, recover the illicitly obtained funds, and hold all participants in the scheme accountable.
