Gary Gensler, the Chairman of America's SECThe SEC has slapped Cynthia and Eddy Petion, the masterminds behind NovaTech, with charges for running a massive crypto fraud.
Their scheme allegedly sucked in over $650 million from more than 200,000 investors around the globe. Many of those who fell for the scam were part of the Haitian-American community.
The SEC didn’t stop with just the Petions, though. They’re also coming down hard on six others—Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley—who played a part in promoting NovaTech.
From 2019 to 2023, NovaTech operated as an MLM (multi-level marketing) and crypto investment program. But according to the SEC, it was all smoke and mirrors.
The Petions lured people in by promising big returns, claiming they would invest in crypto and foreign exchange markets. Cynthia Petion sweet-talked investors, telling them they’d be “in profit from day one.”
But behind the scenes, the reality was far different. Most of the money wasn’t being invested at all—it was being funneled to pay off earlier investors and to line the pockets of promoters.
A big chunk of the cash was also allegedly siphoned off by the Petions themselves. When the whole operation finally collapsed, most investors were left high and dry, unable to get their money back.
Eric Werner, the SEC’s Fort Worth Regional Office Director, pointed out that the Petions and their fraudulent setup caused “untold losses to tens of thousands of victims around the world.”
He also emphasized that the SEC isn’t just going after the brains behind the operation. NovaTech’s top promoters recruited a wide network of investors, and for every new sucker they brought in, NovaTech rewarded them with commissions.
Even when some of them, like Zizi, Dunbar, Corbett, and Sampson, saw red flags—like when U.S. and Canadian regulators started sniffing around—they didn’t hit the brakes.
Instead, the SEC told us they kept pushing the scam, downplaying the risks and convincing more people to part with their money.
The SEC’s complaint is now in the hands of the U.S. District Court for the Southern District of Florida. All the defendants are facing charges for registration violations.
The SEC is going after them for a range of penalties, including permanent injunctions, disgorgement of their ill-gotten gains, and civil penalties.
