SEC Charges NovaTech in $650 Million Pyramid Scheme

The SEC has filed fraud charges against NovaTech Ltd., its founders Cynthia and Eddy Petion, and six promoters, alleging a $650 million pyramid scheme that defrauded over 200,000 investors globally, particularly targeting the Haitian-American community. The Petions, who branded themselves with religious overtones, promised high returns from crypto and foreign exchange investments but used the majority of funds to pay earlier investors and promoters, siphoning millions for personal use. The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains, and civil penalties. The scheme collapsed in May 2023, leaving many investors unable to withdraw their funds. This action follows a separate lawsuit by the New York Attorney General, estimating the fraud at over $1 billion.