🌋 SEC Accuses NovaTech Founders of Fraud
posted 13 Aug 2024
According to the SEC statement, the married co-founders of NovaTech, Cynthia and Eddy Petion, along with a group of promoters, inflicted over $650 million in losses on investors.
The company lured victims into investing in crypto assets and foreign exchange markets. However, the funds raised were redirected to pay earlier investors and cover the organizers' personal expenses, characteristic of a classic Ponzi scheme.
The scam affected over 200,000 people globally, many of whom were members of the Haitian-American community. The company exploited religious rhetoric and promises of financial independence to target these individuals.
The SEC highlighted that such large-scale fraud typically involves promoters, and these charges illustrate that responsibility is not only with the organization but also with those who spread such schemes.
NovaTech collapsed in March 2023, leaving investors unable to withdraw their investments.
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