The U.S. Securities and Exchange Commission (SEC) has filed charges against NovaTech Ltd. and its principals, Cynthia and Eddy Petion, alleging they orchestrated a massive cryptocurrency fraud scheme that defrauded over 200,000 investors globally, with a significant impact on the Haitian-American community.
According to the SEC’s complaint, NovaTech, under the Petions’ leadership, operated as a multi-level marketing (MLM) scheme intertwined with a fraudulent crypto asset investment program.
The SEC’s charges also extend to six top NovaTech promoters—Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley. These promoters are accused of actively recruiting a vast network of investors while deliberately downplaying critical warnings and regulatory actions taken against NovaTech by U.S. and Canadian authorities.
The SEC is seeking permanent injunctive relief, the return of ill-gotten gains, and civil penalties against all defendants. Notably, one of the promoters, Martin Zizi, has agreed to a partial settlement with the SEC without admitting or denying the allegations.
As part of the settlement, Zizi has consented to a $100,000 civil penalty and a permanent injunction from future violations of the charged provisions. The final determination of other monetary remedies against Zizi will be decided at a later date, pending court approval.
