The United States Securities and Exchange Commission (SEC) has formally charged Novatech, its founders Cynthia and Eddy Petion, along with several promoters, for allegedly orchestrating a massive Ponzi scheme that defrauded over 200,000 investors worldwide, including many from the Haitian-American community. The SEC claims that Novatech raised more than $650 million under the guise of investing in digital assets and foreign exchange markets, while in reality, most of the funds were used to pay off earlier investors and promoters.
The scheme, which ran from 2019 until its collapse in 2023, lured investors with promises of high returns and guaranteed profits from day one. However, only a small fraction of the funds were ever actually invested, and those investments suffered significant losses. The SEC alleges that the Petions funneled millions of dollars from the scheme for personal use.
As the scheme began to unravel, investors faced significant delays in withdrawing their funds, leading to a complete shutdown of Novatech’s operations in May 2023. The SEC is seeking permanent injunctive relief, civil penalties, and the return of funds misappropriated by Novatech and its promoters.
