Search
Close this search box.

NovaTech FX Scam: The Full Saga

A $2.3 billion lawsuit, millions of visitors, thousands of victims. A cancer eating away the United States of America at its core. Let’s review the full story of NovaTech FX from its roots, the operations of AWS Mining, and the connection of Cynthia and Eddy Petion to AWS Mining and many schemes. Let’s review NovaTech FX‘s fraudulent operations and reveal the truth.

NovaTech FX Overview

NovaTech FX along with its predecessor AWS Mining, has demonstrated a pattern of deceitful practices and several schemes including the use of multi-level marketing structures to sustain ponzi and pyramid schemes. These schemes rely on the continuous recruitment of new members to sustain payouts to earlier investors, ultimately leading to the collapse of the system. Stay away from NovaTech FX, as they have been found guilty in several jurisdictions and have received several desist and refrain orders.

  1. NovaTech FX MLM Structure: NovaTech FX operates using an MLM model, where the primary product is the affiliate membership itself. This structure seperates NovaTech FX from legitimate MLM companies. NovaTech FX demands the recruitment of new members to sustain the scheme.
  2. NovaTech FX Pyramid Scheme: NovaTech FX offers various investment tiers, each promising different levels of benefits or potential earnings. Higher-priced packages offer higher commissions or perks, creating a pyramid system that incentivizes affiliates to invest more and recruit others to do the same.
  3. NovaTech FX Ponzi Scheme: NovaTech FX promises consistently high returns on investments, a common trait of Ponzi schemes. The lack of tangible products or services and the focus on recruiting affiliates is system doomed to fail.
  4. NovaTech FX Fraud Warnings: Regulatory bodies in multiple jurisdictions, including Russia, Canada, and the United States, have issued securities fraud warnings against NovaTech FX. NovaTech FX operates without proper registration or authorization.
  5. Legal Actions and Cease and Desist Orders: NovaTech FX has faced legal actions and cease and desist orders from regulatory authorities, such as the Texas State Securities Board, the Ontario Securities Commission, and the British Columbia Securities Commission for violating securities laws and engaging in fraudulent activities.
  6. Withdrawal Issues: NovaTech FX has a history of disabling withdrawals and failing to fulfill withdrawal requests. Their responses to suspended withdrawals are signifiers of a potential exit scam.
  7. Rebranding and Relocation: In an attempt to evade legal repercussions and continue its operations, NovaTech FX has rebranded and relocated to jurisdictions with milder regulations, such as Dubai.
  8. RICO Class Action: A RICO class action filed in New York accuses NovaTech FX and its associates of conducting fraud, structuring a Ponzi scheme, and operating without a valid registration or license.
  9. Criminal History of Founders: Cynthia and Eddy Petion, key figures behind NovaTech FX, share a history of legal and financial troubles, including bankruptcies and lawsuits for breach of contract and unfair advantages.
  10. Misleading Marketing Practices: NovaTech FX has been accused of making false and misleading statements in its marketing materials.

To protect yourself from becoming a victim of NovaTech or similar scams, it is crucial to conduct thorough research, seek advice from financial professionals, and report any suspicious activities to the appropriate authorities. Remember, if an investment opportunity sounds too good to be true, it probably is.

Timeline of The NovaTech FX Scam

2018:

  • April 8: The domain awsmining.com is registered for AWS Mining, a company that would later influence NovaTech FX.
  • September 21: AWS Mining revealed its founders as Daniel Beduschi and Alexandre Campos, two known names in the history of scams.

2019:

  • Early 2019: AWS Mining faces a cash flow problem and fabricates a story about a fire destroying their crypto mining farms in Paraguay.
  • May 1: AWS Mining rebrands itself as AWS Capital.
  • June 17: The first official address for NovaTech’s website domain (“novatechfx.io”) is registered by the old US representatives Cynthia and Eddy Petion.
  • July 11: NovaTech FX abandons its .io domain and moves to novatechfx.com, revealing Cynthia Petion as the CEO.

2020-2021:

  • Throughout 2020 and 2021: NovaTech FX operates primarily in the United States, claiming to be registered despite no evidence of such registration with the SEC.

2022:

  • August 9: NovaTech FX receives a securities fraud warning from the Central Bank of Russia.
  • September 22: During a webinar, claims are made that the FBI had audited and approved NovaTech FX, which are later found to be unfounded.
  • October 11: The British Columbia Securities Commission issues a securities fraud warning to NovaTech FX.
  • October: Issues with CoinPayments lead to withdrawal problems for NovaTech FX investors.
  • November: NovaTech FX receives a securities fraud cease and desist order from California’s Department of Financial Protection & Innovation.

2023:

  • February 5: NovaTech FX temporarily freezes withdrawals for a period of 60 days.
  • May 11: NovaTech FX stops paying its customers and affiliates, indicating the execution of its exit plan.
  • August 25: The Ontario Securities Commission files a Statement of Allegations against NovaTech FX and Cynthia Petion for securities fraud in Ontario.

2024:

  • February: A NovaTech investor files a RICO class action in New York, including allegations against Cynthia Petion, Ricardo Roy, Eddy Petion, and shell companies of NovaTech.

NovaTech FX Scam: The Full Story

To fully comprehend the history of NovaTech FX’s scam, we need to go back to September 21st, 2018, when a company called AWS Mining was discovered. AWS Mining, another Ponzi scheme, influenced NovaTech FX’s operations. At first, AWS Mining chose to keep its founders discreet. That same year, AWS Mining hosted a business presentation on its website awsmining.com, revealing its founders as Daniel Beduschi and Alexandre Campos.

aws mining founders

Daniel Beduschi is no stranger to such schemes, particularly Ponzi schemes that derive from pyramid schemes. He played a significant role in the InterBBOM scheme, a reboot of the BBOM Ponzi scheme that Brazilian authorities shut down in July 2013. InterBBOM, operating under the guise of selling mobile apps, required affiliates to pay a participation fee and then invest in one of three available “packs” ranging from $185 to $927.

More the affiliates invested, the higher their potential ROI reached. The company’s compensation plan revolved around a binary system, with affiliates earning points and MOBB points based on their recruited affiliates’ pack purchases. The Global Bonus, the main payout mechanism, was likely funded by affiliate money spent on packs, with redistribution primarily based on the number of affiliates and their investments under each affiliate.

The domain awsmining.com was registered on April 8th, 2018. Similar to OnmaxDT, AWS Mining chose to operate as a satellite company of another company in Australia to present themselves as a legitimate entity. This company was AWS Mining PTY LTD, showcased main entity of AWS Mining. AWS Mining LTD was registered with ASIC under ACN 619 297 077 license number. It ran its crypto withdrawals through another shell company called MyCoinDeal.

How AWS Mining Ran It’s Schemes

The AWS Mining compensation structure was a basic multi-level marketing (MLM) scheme, with elements that resemble both pyramid and Ponzi schemes:

Affiliate Ranks: AWS Mining has seven affiliate ranks, each requiring a certain amount of investment and recruitment. For example, to become a “Miner,” one must sign up, invest, and recruit at least two affiliates who also invest. Higher ranks require generating more downline investment volume, with the “President” rank requiring a generation of $10,000,000 in downline investment volume.

Recruitment Commissions: Affiliates earn a 10% commission on funds invested by personally recruited affiliates, encouraging the recruitment of new members to earn commissions, which is a characteristic of pyramid schemes.

Residual Commissions: AWS Mining pays residual commissions via a binary compensation structure, where affiliates are paid a percentage (4% to 10%) of matched investment volume on both sides of their binary team. The commission rate and daily earnings cap depend on the affiliate’s rank and investment level.

Maintenance Fee Commissions: A portion of the contract fees (20%) is used to pay commissions through a unilevel compensation structure, capped at five levels deep. The percentage payout for each level is not explicitly stated but is assumed to be evenly split.

Rank Achievement Bonus: Affiliates are rewarded with a one-time bonus for reaching certain ranks, with bonuses ranging from $100 for the Coordinator rank to $100,000 for the President rank.

Involvement of Cynthia Petion and Expanding Borders 

The reason I started this NovaTech FX review with the foundation of AWS Mining is Daniel Beduschi, a well-known scammer who has been involved in several major schemes. When AWS Mining expanded its operations to the US, a new name emerged: Cynthia Petion.

Cynthia petion in aws mining

However, things didn’t go well for AWS Mining in the US. In 2018, AWS Mining was served with a cease and desist order for securities fraud by the Texas State Securities Board. On November 6th, the Texas Securities Board cracked down on AWS Mining’s operations. ASIC, historically, has been ineffective at detecting MLMs. Their regulations and licenses allowed AWS Mining to emerge from this battle relatively unscathed.

texas state securities board on aws mining

You can check the Order No. ENF-23-CDO-1877 by clicking on the picture.

The only aspect the Texas Securities Board managed to address was AWS Mining’s 200% ROI structure, which lacked evidence of ever being fulfilled by the company. Like any other Ponzi scheme, AWS Mining was taking its cut and using new investors’ money to pay earlier investors, perpetuating the pyramid scheme.

In the end, the Texas Securities Board found AWS Mining guilty of the following:

  • Violating the Texas Securities Act by failing to register its securities offering with the Texas Securities Commissioner.
  • Engaging in fraud through the sale of securities.
  • Making statements that were materially misleading or likely to deceive the public.

Cynthia and Eddy Petion were high-ranking members of AWS Mining.The Petions’ roles in AWS Mining were significant. Cynthia and Eddy Petion were founding presidents of the AWS Mining MLM division for America. They were directly involved in promoting the company and encouraging investments, even after the company faced legal issues. Despite the Texas cease and desist order, they continued to encourage investments in AWS Mining

eddy petion aws mining

Cynthia’s husband, Eddy Petion, described AWS Mining’s involvement in securities fraud as “speculative and not factual.”

The Fall of AWS Mining 

After the case, the Texas State Securities Board labeled AWS Mining as a Ponzi scheme and reached an agreement on refunding US investors.

aws capital logo

Instead of trying to clear their name, AWS Mining chose to continue their scheme under a new name, AWS Capital. This made their operations in US borders more challenging. However, AWS Mining’s primary targets have always been Mexico and Brazil.

AWS Mining’s Delayed Payments and The Fire 

In 2019, AWS Mining faced a serious cash flow problem, unable to pay its members due to insufficient revenue from customer flows.

Instead of shutting down operations, AWS Mining fabricated a story. They claimed that their crypto mining farms in Paraguay were destroyed in a major fire. They did not provide details about the cause of the fire or the extent of the damage but emphasized that there would be economic losses for the company.

aws mining paragual crypto farm

A farm manager in Ciudad del Este stated that the fire occurred on March 29th, 2019, and destroyed ASIC miners.

After this incident, AWS Mining stopped paying existing clients for weeks. Eventually, they abandoned the idea of paying clients and decided to rebrand themselves as AWS Capital, set to debut on May 1st, 2019.

aws mining dubai event -min

AWS Mining admitted that their business plan was flawed and claimed that their consultants and leaders were working to find a solution. They stated, “We have adjusted our Business Model following the requirements of some of the toughest regulators in existence so that our customers can be safe when promoting AWS MINING products and services to others. Our goal is to deliver a profitable, transparent, and innovative product to our customers.”

AWS Capital was intended to launch in Dubai, where regulations are less strict, and revenues can’t be easily tracked. They highlighted that “Dubai has an open economy with favorable business regulations, such as adopting open policies for crypto-friendly businesses and blockchain technology.”

After rebranding as AWS Capital, the company continued to encounter legal and financial difficulties. The rebranding seemed to be an effort to separate the company from its past legal problems and to carry on its operations under a new name. However, there is little information about the specific activities and results of AWS Capital following the rebranding.

The Birth of NovaTech FX

NovaTech FX initially provided no information on its founders or management on its website. The first official address for NovaTech FX’s website domain (“novatechfx.io”) was registered on June 17th, 2019.

On novatechfx.io, the company claimed to be located in Vatican City and registered in the British Virgin Islands and Estonia, although there was no real evidence supporting these claims.

cynthia petion linkedin

On July 11th, 2021, NovaTech FX abandoned their .io domain and moved to novatechfx.com. On this new website, there was section “from the CEO”, Cynthia Petion, revealed herself as the CEO of NovaTech FX for the first time on the official website.

On this page, Cynthia stated:

When we developed NovaTech, Ltd., we decided on two things:

First, we resolved that our program would be affordable to join and available to anyone who wanted to participate.

Cynthia Petion

Cynthia Petion received a bachelor’s degree in business administration from the State University of New York in 1995. She markets herself as the Reverend CEO, and TheReverendCEO.com is her mentorship website.

In her review on enterpreneur.org, she mentions the founding of NovaTech FX with these words:

After much research, we could not find any business that reflected our ideals or how we wanted a trade to run. Instead of finding a company that matched our business values, we created and did things the way we felt they should.

Second, we committed to providing people with the tools and skills training they need to be successful.

Cynthia Petion

NovaTech FX’s MLM Structure 

NovaTech FX’s structure is a multi-level marketing (MLM) model similar to AWS Mining’s, where there are no tangible products or services being sold to clients. Instead, the primary product is the affiliate membership itself.

Affiliate Membership: NovaTech affiliates can only market the membership to join NovaTech. The company’s revenue primarily comes from new affiliates signing up and paying for their membership packages.

Investment Tiers: NovaTech FX offers several investment tiers, each with a different price range:

  •   Builder Package: $99-$499
  •   Bronze Package: $500 to $2,499
  •   Silver Package: $2,500 to $4,999
  •   Gold Package: $5,000 to $9,999
  •   Platinum Package: $10,000 to $24,999
  •   VIP Package: $25,000 to $99,999
  •   President Package: $100,000+

These packages are tied to different levels of benefits or potential earnings within the MLM structure, with higher-priced packages offering higher commissions or other perks.

How NovaTech scam works:

For example, imagine a client named Alex who decides to join NovaTech. Alex pays $500 to purchase the Bronze Package and becomes an affiliate. As an affiliate, Alex’s main goal is to recruit more people to join NovaTech and purchase their own packages. Alex earns commissions based on the number of people he recruits and the packages they buy.

However, there are no products or services to materialize, and the primary focus is on recruiting more affiliates. This structure is characteristic of many MLM schemes and is akin to a classic pyramid scheme, where the sustainability of the business depends on continuous recruitment rather than the sale of goods or services.

NovaTech FX Pyramid Scheme

The primary way to earn money in NovaTech FX is through recruiting new affiliates rather than selling products or services to external customers. In NovaTech FX’s pyramid scheme, earnings are typically based on the number of people you can recruit into the scheme, and the money those recruits pay to join.

Make no mistake, NovaTech FX’s services are not legitimate, and NovaTech does not offer any legitimate retail products or services. This lack of tangible products or services is a common trait of pyramid schemes.

In NovaTech FX, affiliates must purchase membership packages to participate in the earning structure. This requirement is a key indicator of a pyramid scheme, where participants must pay to join, and the primary source of revenue comes from new recruits buying into the scheme rather than from profitable products or services.

The tiered investment structure in NovaTech FX, where higher-priced packages potentially offer greater rewards, is identical to the levels in a pyramid scheme. Individuals at the top of the structure (those who joined early or invested more) stand to benefit the most, while those at the bottom (new recruits or those with lower investments) are less likely to see significant returns.

NovaTech offers various investment tiers with different price ranges and benefits. The tiers are:

  • Builder: $99 to $499
  • Bronze: $500 to $2,499
  • Silver: $2,500 to $4,999
  • Gold: $5,000 to $9,999
  • Platinum: $10,000 to $24,999
  • VIP: $25,000 to $99,999
  • President: $100,000+

All packages from Builder to Platinum incur a $25 monthly service fee. NovaTech does not disclose specific ROI rates, but VIP tier affiliates are promised to earn 1% more per month than other tiers. Withdrawal fees vary by tier, with Bronze at 35%, Silver through Platinum at 30%, and VIP at 25%.

NovaTech Scam Compensation Plan

NovaTech has a compensation plan with five affiliate ranks, each with specific qualifications:

  • Associate: Become a NovaTech affiliate and make an investment.
  • Junior Executive: Invest at least $2,500, recruit three Associates, and achieve $50,000 in total investment volume from your downline.
  • Executive: Invest a minimum of $5,000, recruit two Junior Executives, and generate $500,000 in downline investment volume.
  • Senior Executive: Invest at least $10,000, recruit two Executives, and generate $2,000,000 in downline investment volume.
  • Director: Invest a minimum of $50,000, recruit two Senior Executives, and achieve $10,000,000 in downline investment volume.
  • Ambassador: Invest at least $100,000, recruit two Directors, and generate $50,000,000 in downline investment volume.

For positions up to Executive, a single unilevel team leg cannot contribute more than 50% of the necessary downline investment volume. For Senior Executives, this limit is 40%.

NovaTech FX Commissions 

NovaTech offers rewards for recruiting new affiliates and referring retail customers:

  • Earn $50 for recruiting a Bronze tier affiliate or retail customer.
  • Earn $100 for recruiting a Silver tier affiliate or retail customer.
  • Earn $150 for recruiting a Gold tier affiliate or retail customer.
  • Earn $200 for recruiting a Platinum tier affiliate or retail customer.
  • Earn $250 for recruiting a VIP tier affiliate or retail customer.
  • Additionally, NovaTech provides Fast Start Bonuses:

If you recruit three Bronze tier affiliates within 45 days of joining to earn a $100 bonus.

Recruit five silver tier affiliates within 45 days of joining to earn a $300 bonus.

Novatech ROI Bonus Structure MLM

NovaTech Fx has a structure called the ROI Match Bonus, which works through a system called unilevel compensation. In this system, an affiliate is placed at the top, and each person they directly bring in is placed right below them on level 1. If those level 1 people bring in new recruits, those recruits go on level 2, and so on. This can go on endlessly, but NovaTech only pays the ROI Match Bonus for the first five levels.

The bonus is a percentage of the earnings of the team members on these five levels:

  • Associates get a 5% bonus from their direct recruits on level 1.
  • Junior Executives get a 5% bonus from level 1 and 2% from level 2.
  • Executives get a 5% bonus from level 1, 2% from level 2, and 1% from level 3.
  • Senior Executives get a 5% bonus from level 1, 2% from level 2, and 1% from levels 3 and 4.
  • Directors and higher get a 5% bonus from level 1, 2% from level 2, and 1% from levels 3 to 5.

Novatech Rank Bonuses

NovaTech FX offers special bonuses to affiliates who reach certain ranks, starting from Junior Executive and above. These bonuses are called Rank Achievement Bonuses and, are awarded as follows:

  • Become a Junior Executive and get a bonus of $500.
  • Become an Executive and get a bonus of $2,000.
  • Become a Senior Executive and get a bonus of $5,000.
  • Become a Director and get a bonus of $10,000.
  • Become an Ambassador and get a bonus of $25,000.

In simpler terms, NovaTech gives cash rewards to its affiliates when they reach higher levels in the company. The higher the rank, the bigger the bonus.

How Does NovaTech Shares Profits 

NovaTech FX sets aside 10% of the total money invested by everyone in the company and divides it into three different Profit Sharing pools. Each pool is associated with a specific rank within NovaTech’s affiliates:

– Senior Executive Pool gets 2% of the total.

– Director Pool gets 3% of the total.

– Ambassador Pool gets 5% of the total.

Affiliates who are Senior Executives, Directors, or Ambassadors get a portion of the money from the pool that matches their rank. These Profit Sharing pools are distributed every three months (quarterly).

How to Login Novatech FX 

Novatech fx affiliates start from $49.95, and then clients pay a $2.95 monthly fee. To fully participate and benefit from the perks of being an affiliate, you need to invest a minimum of $99.

However, there is another way to become a Novatech affiliate, which is by signing up with a package. With this option, you’ll be able to become a Novatech fx affiliate without paying the $49.95 fee, but you’ll pay a $25 monthly fee.


NTech Trading Robot

The NovaTech FX trading bot, often referred to as the N-Tech trading bot, is a software program developed by NovaTech Ltd. It is designed to automate trading in the foreign exchange (Forex) market. Allegedly, the bot uses algorithms and technical analysis to make trading decisions and execute trades on behalf of users.

Algorithmic Trading: The N-Tech bot is advertised as employing complex algorithms to analyze market data, identify trading opportunities, and execute trades at optimal times. These algorithms are based on technical indicators, historical price data, and market trends.

Automated Execution: Once a trading opportunity is identified, the bot automatically executes the trade without the need for human intervention.

24/7 Trading: The N-Tech trading bot operates around the clock, taking advantage of trading opportunities in different time zones and markets.

Performance Monitoring: The bot typically provides users with reports and analytics on its trading performance, allowing them to monitor its effectiveness and make informed decisions about their investments.

However, when it comes to actual NovaTech FX customer experiences, major withdrawal problems and unreachable customer service have been reported.

NovaTech FX Scam 

At first, Cynthia was publishing progress reports each week. At some point, she stopped sharing them because they were just another part of the scam. Now, we’ll examine their alleged progress reports, and you’ll be amazed at how easy it was to detect their scam.

novatech scam report

Now, if we look at their progress reports each week, we see an exceptional regularity in profits, which may sound ideal for newcomers, inexperienced traders, or someone who’s not able to subtract 2 and 5. But 3% profit on a regular basis is huge. It’s Warren Buffett huge.

novatech scam report 2
novatech scam report 3

However, there is no real evidence that these are real results; they are just bar charts and imaginary numbers put together to mislead possible clients. NovaTech FX has never posted a loss in more than 100 weeks. This is an unachievable number. You don’t need to be Einstein to detect the absurdity of the situation. You can basically go to a compound interest calculator and calculate how much it would be after some time.

With a $10,000 initial investment and assuming Novatech’s data is true:

Final Amount = Initial Investment × (1 + Weekly Interest Rate) ^ Weeks

Final Amount = $10,000 × (1 + 0.03) ^ 100

Final Amount ≈ $192,186.32

So, after 100 weeks with a 3% weekly profit, the final amount would be approximately $192,186.32. 

After 4 years, you’d have approximately $4,678,888.96. No one needs to work ever.

eddy petion bankrupcy novatech fx

If NovaTech FX had delivered what it promised, Cynthia and Eddy would have benefited the most, right? By the time I’m writing this review in 2024, they should have owned a country. Well, no. Cynthia and Eddy were in debt, dealing with bankruptcy.

novatech fx bankrupcy

Now, we all know that forex is a dangerous game, and even the most experienced traders (including myself) don’t make consistent profits. According to Tokenist data, only about 15% of forex traders make a profit.

novatech fx Us registeration

In contrast to AWS Mining, the main target of NovaTech FX was the United States, and they claimed to be registered in the US. However, despite their claims, when you go to the official website of the SEC, there are two registered companies under the name Novatech, both being IT companies under the name of Dieter Berndt. NovaTech FX has never been registered for its operations in the US.

novatech us registeration

First Fraud Warning for NovaTech FX

On August 9, 2022, NovaTech FX received a securities fraud warning from the Central Bank of Russia. The warning stated that NovaTech FX exhibits “signs of an illegal professional participant in the securities market,” which is equivalent to a securities fraud warning in other jurisdictions.

novatechfx russia scam

NovaTech FX Struggles to Be Seen Legit

On September 22, 2022, during a “Compounding for Wealth” webinar hosted by NovaTech FX investor Heather “goldengurl” Bilange, it was claimed that the FBI had audited and approved NovaTech FX, a suspected Ponzi scheme.

CEO Cynthia Petion supported the claim, stating she personally received a copy of the “seven hundred page” audit report. However, when questioned about the report’s availability, Cynthia Petion humorously remarked that she didn’t have it and had burned it after reading the conclusion that NovaTech FX was a legitimate company.

The webinar also featured discussions about transitioning from other collapsed Ponzi schemes, such as HyperFund and Hyperverse, to NovaTech FX. Keith Walden, one of the speakers, mentioned that he and others joined NovaTech FX after their previous platform faced challenges. The webinar also mentioned Troy Rejda and David Chandler, who run the Satoshi Show and promote NovaTech FX through the “TSS Golden Team.”

satoshi show novatechfx

Despite these claims, there is no evidence to support the notion that the FBI approved NovaTech FX. The company operates without proper registration with regulatory authorities like the SEC or CFTC. As of September 2022, the majority of traffic to NovaTech FX’s website comes from the US, with a significant increase in visits due to victims from other collapsed MLM Ponzi schemes being funneled into it.

As victims from Hyperverse and other collapsed MLM Ponzi schemes are funneled into it, NovaTech FX’s website traffic has grown to 2.2 million visits in September 2022.

Canada’s First Fraud Warning for Novatech FX

On October 11, the Florida-based company NovaTech FX received a securities fraud warning from the British Columbia Securities Commission (BCSC). The BCSC stated that NovaTech FX accepted funds from residents in British Columbia without being registered to trade or advise on securities or derivatives in the region.

novatechfx bcsc fraud warning

Despite claims of being audited and approved by the FBI, NovaTech FX is not registered with any financial regulators, including the SEC and CFTC in the US. The company promises weekly returns from forex trading but lacks the necessary regulatory approvals. This marks the first warning from a Western regulator, following a previous warning from Russia in August.

CoinPayments Dispute 

In October 2022, NovaTech FX investors experienced issues withdrawing tether (USDT) transactions. The company attributed the problem to CoinPayments, their payment processor. Despite transactions being marked as “sent,” they were rejected on the blockchain.

CoinPayments attempted to resolve this by whitelisting exchanges, but the issues persisted. NovaTech FX recommended using other cryptocurrencies for withdrawals, following a securities fraud warning from the British Columbia Securities Commission. NovaTech FX, operated by Cynthia and Eddy Petion, is a Ponzi scheme and CoinPayments, based in Canada, has previously terminated services for Ponzi schemes like OneCoin. To address issues more quickly, NovaTech FX deleted all queued support tickets and removed CoinPayments from their system.

Novatechfx coinpayments

Novatech FX’s First Fraud Warning from The US: California 

In November 2022, NovaTech FX was issued a securities fraud cease and desist by California’s Department of Financial Protection & Innovation (DFPI). This notice is significant as it is the first from the US and is the most comprehensive one. The cease and desist applied to:

  • NovaTech LTD (St. Vincent & Grenadines shell company);
  • NovaTech Advisors LLC (Florida company);
  • NovaPay LLC (Florida company);
  • NovaTrading OU (Estonian shell company);
  • Cynthia Petion (US-based NovaTech FX co-founder and CEO); and
  • Eddy Petion (US-based NovaTech FX co-founder).
novatechfx california scam


DFPI has decided that NovaTech FX was committing securities fraud:

“The Packages offered by NovaTech, Cynthia Petion, and Eddy Petion were securities that were neither qualified nor exempt from the qualification requirement under the CSL.

The Department has not issued a permit or other form of qualification authorizing NovaTech, Cynthia Petion, or Eddy Petion to sell these securities in California.

In connection with the offer or sale of these securities, NovaTech, Cynthia Petion, and Eddy Petion made, or caused to be made, untrue statements of material fact and material omissions to investors and potential investors, including but not limited to the following:

a. falsely representing that NovaTech is a registered hedge fund in the United States;

b. falsely representing that NovaTech is a registered investment adviser;

c. falsely representing that NovaTech is a registered broker;

d. failing to disclose that the offer or sale of NovaTech’s securities was not qualified in California;

e. failing to provide any qualifications to substantiate claims that investors’ funds are managed and traded by experienced traders;

f. failing to disclose that in March 2011, Cynthia Petion and Eddy Petion filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the Eastern District of New York;

g. failing to disclose that in August 2019, a debt buyer sued Cynthia Petion in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, Civil Division, for breach of contract and unjust enrichment, alleging that Cynthia Petion had failed and/or refused to repay a loan;

h. failing to disclose that in July 2018, a mortgage lender sued Eddy Petion and Cynthia Petion in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, Civil Division, in an action to foreclose a defaulted mortgage on residential real property held by Eddy Petion and Cynthia Petion;

i. failing to disclose that in April 2018, a credit card issuer sued Cynthia Petion in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, Civil Division, for account stated and unjust enrichment.

A judgment was entered against Cynthia Petion in the amount of $11,776.55; and

j. failing to disclose that in October 2017, a credit card issuer sued Eddy Petion in the County Court in and for Palm Beach County, Florida, for account stated. A judgment was entered against Eddy Petion in the amount of $4,740.56.”

The document also contained details about none of the NovaTech FX companies being regulated nor registered in California:

“Pursuant to Corporations Code section 25532, Nova Tech Ltd. a/k/a NovaTech, Ltd., NovaTech Advisors, LLC, NovaPay, LLC, NovaTrading OÜ, Cynthia Petion, and Eddy Petion are hereby ordered to desist and refrain from the further offer or sale of securities in California, including but not limited to investment contracts known as Packages, unless and until the qualification requirements of the CSL have been met.

Pursuant to Corporations Code section 25403, any person who controls or induces another person to violate a provision of the Corporate Securities Law of 1968, or any person who provides substantial assistance to another person in violation of the Corporate Securities Law of 1968, shall be liable for the violations.”

DFPI also identified NovaTech FX’s business as a High Yield Investment Program (HYIP):

“NovaTech was luring investors into what is known as a High Yield Investment Program (HYIP).

HYIPs are unregistered investments typically run by unlicensed individuals – and are often frauds. The hallmark of an HYIP scam is the promise of high returns on an annual (or even monthly, weekly, or daily) basis at little or no risk to the investor.”

NovaTech FX’s Securities Compliance Misconduct

In response to California’s desist and refrain order, NovaTech FX acted swiftly to protect itself from allegations and further charges. How? Not by proving the legitimacy of its operations, but by preventing clients from withdrawing their assets.

NovaTech made a public release stating:

“Go through your posts on social media (Facebook, Instagram, Twitter, YouTube, etc.) and ensure that any/all posts with an ROI or ANY advertisement, solicitations that have NOVATECH’s name or logo on it… gets DELETED IMMEDIATELY & without hesitation! If you see anyone doing so, please kindly communicate/inform them accordingly. Not deleting/removing such posts may lead to having their NOVATECH account closed.”

novatechfx blocked withdrawals

This move aims to avoid regulatory scrutiny, as any MLM scheme promising ROI without proper registration constitutes securities fraud in the US. Despite these efforts to appear compliant, NovaTech FX’s operation still meets the criteria of an investment contract under the Howey Test, making it subject to SEC regulation. The company has not registered with the SEC, which officially means that NovaTech FX operates illegally.

Second Fraud Warning for Novatech FX from Canada

NovaTech FX received its second securities fraud warning from Canada on October 14th. The Alberta Securities Commission added NovaTech FX to its caution list, which is equivalent to a securities fraud warning in the US. NovaTech FX is recognized as a Ponzi scam by multiple jurisdictions.

novatechfx second fraud warning from canada

Despite these warnings and the increasing suspects, Cynthia and Eddy, the couple behind NovaTech, flew from the US and shared Instagram posts from the EU and Dubai.

Canada’s Third Fraud Warning for NovaTech FX

On December 13th, the Ontario Securities Commission issued a warning stating that NovaTech’s operations in Canada are unregistered and not legitimate. This makes OSC is the third Canadian regulator to identify NovaTech FX as a scam.

3rd canadian scam report for novatech


Saskatchewan NovaTech FX Fraud Warning

On December 13th, NovaTech FX also received a securities fraud notice from Saskatchewan’s Financial and Consumer Affairs Authority. With Saskatchewan’s warning, NovaTech has been identified as a scam in four different authorities in Canada.

novatech scam in canada

NovaTech FX Withdrawals Disabled, Once Again

On February 5th, 2023, NovaTech FX disabled withdrawals. The concerning aspect is that NovaTech FX included an article in its terms and conditions that allows them 60 days to flee. In their public statement, they said:

“We have decided to place a temporary freeze on trading account withdrawals for a period of 60 days. This includes existing cashout requests from Trading. This will allow us to immediately start the process of returning to regularly scheduled bonus account withdrawals.”

A Ponzi scheme often attempts a time-delayed exit scam for several reasons:

  • By delaying the exit scam, the scheme operator can restore their reputation. As early investors see returns on their investments, they are likely to reinvest and encourage others to join. This “dead cat bounce” may salvage enough money to keep the scheme running.
  • By delaying the exit, the operators can maximize their profits. The longer the scheme runs, the more money they can collect from new investors. By delaying withdrawals, operators, in this case, Cynthia and Eddy, could take all the money and secure themselves.
  • A sudden exit might raise immediate suspicion and lead to quicker legal action. A delayed exit allows the operators to plan their escape and possibly cover their tracks.
  • The delay gives the operators time to create a plausible exit strategy. They might fabricate a reason for the scheme’s failure, such as market conditions or external factors, to deflect blame from themselves.

NovaTech FX has been going through this process for the second time in its history. Initially, they were able to parry allegations by blaming CoinPayments. In AWS Mining, they faced a similar situation where they blamed a major fire that destroyed the crypto mining farms in Paraguay.

Here’s NovaTech FX’s full statement about the withdrawals:

“Dear Novatech Member,

Since June of 2019, our focus at NovaTech has been to stimulate financial awareness in a culture unaware of the amazing possibilities in the crypto and forex industry.

By the grace of God, we have been tremendously successful at fulfilling our mission. We created NovaTech’s structure with complete freedom in mind.

We have given our customers absolute control of their journey with us for the last four years, and because of that, we have become a household name in our space.

Our drive to continue our mission for years and possibly decades to come is not about financial gain for us. There are unlimited ways we can make money without the level of stress, scrutiny, and responsibility that comes with our business.

The driving force behind what we continue to do comes from the countless heartfelt testimonies of our members.

During the last quarter of 2022, we experienced a great deal of pressure with the ever-changing landscape of our industry.

As you may already know, we had to close our doors with a heavy heart to some of our most loyal and loving customers in NovaTech due to regulatory changes in specific regions.

We know that most of you may not understand the impact this had on our business, and we as a company should have done a better job at communicating this with you.

While we cannot go back in time to correct what has not been done, we will commit moving forward to giving all of our NovaTech customers the proper communication so that we all have realistic expectations.

We want to assure you that our business model is not only strong but also completely sustainable into the unforeseeable future.

As we move forward in this new and developing 2023 season, our experiences in the last several months of challenges have brought to light some weaknesses in the way we operate that we felt were strengths at one point as a new and growing company.

NovaTech has always produced, performed, and paid every customer since its inception in June of 2019, regardless of the adversity we may have faced in every market condition in the last four years.

While we don’t compare ourselves to any other of the many platforms in our space, we know what we’ve done and what we continue to do is unprecedented.

To protect what we’ve built and to continue to be the crypto trading asset management company we are, it is imperative that we create parameters within our business model that protect our customers from making erratic decisions that can affect the integrity of our program.

NovaTech is unique in the fact that we’ve given our members complete control of how they move about with their crypto funds. But, in light of the forced closures of accounts from some of our beloved members, and the massive amounts of withdrawals we had to initiate, this created a tremendous amount of fear, uncertainty, and doubt that our customers have never had to experience.

Because in the past we chose not to communicate what does not pertain to the functionality or success of our business, we left some of you to fall victim to outside rhetoric, which influenced so many of you in making the decision to withdraw from your trading accounts to simply test if we are still paying.

Please know that we continue to actively pay and release cashouts daily, despite delays.

As a result, we have decided to place a temporary freeze on trading account withdrawals for a period of 60 days. This includes existing cashout requests from Trading.

This will allow us to immediately start the process of returning to regularly scheduled bonus account withdrawals.

We understand this may not sit well with a small percentage of you, but we are here to protect our future as a whole, and we refuse to compromise our crypto asset management and trading strategies for the few that may not understand.

If you have a trading account withdrawal in process, you have a choice to leave it in the queue and wait until April 1st, 2023, when we will resume trading account withdrawals, or you can cancel your withdrawals and allow your account to continue to earn while withdrawing profits weekly.

The goal with NovaTech is to create sustainable passive profits of which we have done an amazing job thus far, and will continue with God’s grace.

Let’s all protect our house by eliminating the noise on the outside by staying plugged in and in communication on the inside.

Every member of NovaTech should have an up-line who’s connected to one of our many Senior Directors and Ambassadors in NovaTech.

We love every last one of you, we appreciate you, and we will continue business as usual.”

NovaTech FX

5th Canadian Fraud Warning for NovaTech FX.

Following the events of December 2022, NovaTech FX has been issued a temporary cease trade order by the Ontario Securities Commission. The OSC encouraged NovaTech FX victims to contact them in order to salvage their assets.

osc fraud warning for novatechfx

Quebec’s Autorité des marchés financiers also published a fraud warning for NovaTech FX and added them to the investor warnings list on February 3rd.

novatechfx investor warning -min

Canada, being the nemesis of NovaTech FX and having banned them in multiple jurisdictions, has finally made a nationwide statement in their securities fraud warning on March 17th. Canada, in its nation wide warning, declared that NovaTech FX operates illegally across the country, citing the disabled withdrawals as a primary reason.

canada nationwide warning for novatech fx

NovaTech FX Delayed Exit

Following the events, NovaTech FX founder Cynthia attempted to delay the exit from the scam, indicating that they are updating parameters and may not meet the date for the promised withdrawals. By that time, NovaTech’s website traffic dropped by 20%.

novatech fx website traffic

The widespread nature of NovaTech’s operations is no coincidence; like any other pyramid scheme, Cynthia and Eddy structured it in a way that entraps anyone who joins. Once payments became congested, people began to complain to higher-ups. As these complaints turned into threats, Cynthia chose to threaten those seeking a way out of the scheme instead of providing information or paying their money.

Desperate Comeback: The Second Era of NovaTech FX Scam

In an effort to salvage her scheme, Cynthia offered more bonuses instead of addressing the withdrawals, which is a typical approach in ponzi schemes. By doing this, Cynthia hoped that the money coming from new customers could rescue the situation.

The changes include waiving service fees for April, May, and June, suspending indirect referral fees, increasing direct referral fees by 50%, and temporarily suspending the Profit Sharing Pool. NovaTech FX also mentioned their new guidelines for cash-out requests and processing, including limiting bonus withdrawals to Mondays and trading withdrawals to the 1st to the 5th of each month.

Novatech FX scam in the United States 

On April 4th, the Wisconsin Department of Financial Institutions (DFI) published a notice order list regarding Cynthia Petion, Eddie Petion, NovaTech Ltd, and Paul J. DeRenzo’s fraudulent activities. The DFI accused NovaTech FX of fraud and proposed civil penalties.

novatech fx scam in the US

A similar case in the history: Joshua David Nicholas and others fraudulently promoted EmpiresX by making false claims about a proprietary trading bot and guaranteed returns to investors. This scheme, which collected around $100 million from investors, turned out to be a Ponzi scheme.

NovaTech FX FBI Investigation
NovaTech FX FBI Investigation 2

Criminal History of NovaTech FX Scammers

  • In 2011, Cynthia and Eddie Petion filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the Eastern District of New York.
  • In August 2019, a debt buyer sued Cynthia Petion in the Circuit Court of the Fifteenth Judicial Circuit in Palm Beach County, Florida, for breach of contract and unjust enrichment over a loan.
  • In July 2018, a mortgage lender sued Eddie Petion and Cynthia Petion in the Circuit Court of the Fifteenth Judicial Circuit in Palm Beach County, Florida.
  • In April 2018, a credit card issuer sued Cynthia Petion in the Circuit Court of the Fifteenth Judicial Circuit in Palm Beach County, Florida, for account stated and unjust enrichment, resulting in a judgment against her for $11,776.
  • In October 2017, a credit card issuer sued Eddie Petion in the County Court in Palm Beach County, Florida, resulting in a judgment against him for $4,740.56.

DeRenzo advertised NovaTech on Craigslist promising weekly payouts and passive income. A Wisconsin resident, “ME,” responded to the ad and was directed to a Zoom presentation where DeRenzo pitched NovaTech FX as an opportunity with almost 3% weekly returns. DeRenzo claimed Nova Tech’s traders consistently made profits, even during market downturns.

NovaTech FX Stops Its Operations in US and Canada

After the recent events, NovaTech FX has added the US and Canada to its list of restricted areas and regions, meaning that NovaTech FX no longer operates in the US and Canada.

novatechfx scam in the us and canda


The End of The Exit Scam

As of May 11th, 2023, NovaTech FX has completely stopped paying its customers and affiliates. Ceasing the payment of recruitment commissions indicates that they have successfully executed their exit plan.

NovaTech FX claimed that the problem was caused by miscalculations regarding commissions and promised to make the payments. However, it’s hard to believe such a company, especially after they promised to pay the Canadian victims following regulatory warnings and then failed to fulfill that promise, even failing to show up to court.

No Future for The NovaTech FX Scam in Canada

Even though NovaTech FX has stopped its operations in the United States and Canada, traces of their actions still linger, and victims continue to suffer. On August 25th, 2023, the Ontario Securities Commission filed a Statement of Allegations, stating that:

  • NovaTech FX and its owner, Cynthia Petion, committed securities fraud in Ontario.
  • A permanent injunction was sought against NovaTech FX and its future operations.

NovaTech FX’s business model was identified as fraudulent, with its Percentage Allocation Management Module (PAMM) and its promised 3% profit without any loss being recognized as a scam.

canada report for novatech fx

NovaTech FX Fraud Charges in Washington

After the events in Canada, Cynthia and Eddy Petion have been charged with securities fraud in Washington. In the statement by the Department of Financial Institutions (DFI), NovaTech FX, along with Cynthia and Eddy Petion, were charged with:

  • Offering and/or selling unregistered securities in the form of PAMM Accounts.
  • Cynthia Petion and Eddie Petion offering and/or selling securities without being registered as securities salespersons or broker-dealers in the state of Washington.
  • Making untrue statements of material fact or omitting to state material facts necessary in the offer or sale of securities.
  • Failing to disclose to investors material information related to the investment, including information about NovaTech’s financial condition, business, operations, management, and the Petions’ legal and financial history.
Novatech FX washington scam

NovaTech FX $2.3 Billion RICO Class Action Filled in New York 

In February 2024, a NovaTech FX investor filed a RICO class action in New York, including several allegations against Cynthia Petion, Ricardo Roy (Cynthia’s brother), Eddy Petion (Cynthia’s husband), and shell companies of NovaTech FX. The allegations were:

  • Drafting, producing, reviewing, and disseminating false and misleading statements.
  • Approving or ratifying these statements in violation of federal securities laws.
  • Conducting fraud.
  • Structuring a Ponzi scheme where the money paid to clients was not from crypto investments but from new investors.
  • Operating without a valid registration or license.

Other individuals connected to the NovaTech FX scam include:

Zizi and Trinity of Success: Zizi used his company, Trinity of Success, to promote NovaTech FX, targeting individuals with little to no knowledge of complex investment tools.

martin zizi novatech -min

Bob and Sophia Saint Louis: Self-proclaimed religious leaders who actively recruited investors and rose to senior director positions within NovaTech after recruiting over a thousand people. 

They held recruitment meetings in New York City.

bob and sophia novatech fx

Frantz Ciceron: Alleged to have knowingly participated in the Ponzi scheme, targeting the Haitian American community.

frantz ciceron

Paul DeRenzo: Tasked with recruiting investors in Pennsylvania, aware of the scheme’s fraudulent nature.

paul derenzo novatech fx

John Garofano and James Gorbett (Corbett): Accused of promoting Ponzi schemes online, with Gorbett specifically noted for his involvement with NovaTech FX.

john garofano novatech scam

Travis Bieberitz: A serial promoter of Ponzi schemes who ensured that investors believed in NovaTech FX’s legitimacy despite past schemes.

Travis Bieberitz novatech fx scam

Debora Brazil and Ricardo Roy: Brazil is accused of recruiting hundreds into the scheme, while Roy is described as the architect of the scheme’s fraudulent system.

Investigations Continue for NovaTech FX Scam

Each year, the U.S. Securities and Exchange Commission (SEC) brings hundreds of cases against businesses and individuals that violate federal securities laws, and NovaTech FX has been a long-time target. The SEC’s investigation into NovaTech FX’s MLM scheme has brought new individuals into the spotlight:

Dap Dunbar (aka Dapilinu Dunbar): Referred to as “Mr. Amazing” and “Tiger,” Dunbar, a Florida resident, promoted NovaTech FX under the name “Team Diamond.” He is believed to have had around 10,000 investors in his downline, with collective investments of at least $50 million in cryptocurrency. 

novatech fx affiliates

Corrie J. Sampson: Identified as a co-founder of Team Diamond, Sampson is a resident of California. She appeared alongside Dunbar in marketing webinars and is claimed to have had around 50,000 investors in her team, with collective investments of over $296 million.

corrie j sampson novatech fx scam

Both Dunbar and Sampson are suspected of having personally profited significantly from the scheme. The SEC issued subpoenas to them in mid-2023 to gather information regarding their involvement with NovaTech FX and their communications with investors, principals, employees, or agents of the scheme. Despite attempts to secure compliance, both individuals failed to fully respond to the subpoenas, leading the SEC to obtain a court order enforcing compliance

Novatech FX Fraud Warning from Australia

NovaTech FX has received a securities fraud warning from the Australian Securities and Investments Commission (ASIC) on February 16th. The warning indicates that NovaTech FX is likely offering financial services to Australian consumers without holding an Australian financial services license or Australian credit license from ASIC. This lack of registration constitutes securities fraud under Australian law.

Conclusion

To fully grasp the history of Novatech FX’s scam, it is essential to trace its origins back to the discovery of AWS Mining on September 21st, 2018. AWS Mining, a well known Ponzi scheme, laid the groundwork for NovaTech FX’s fraudulent operations. Daniel Beduschi, the founder of AWS Mining, had a history of involvement in similar fraudulent activities, including the BBOM scheme, which was shut down by Brazilian authorities in 2013.

AWS Mining’s compensation structure was a classic example of a multi-level marketing (MLM) scheme, with elements of both pyramid and ponzi schemes. AWS Mining rewarded affiliates with various ranks and commissions by encouraging the recruitment of new members to sustain the scheme. Despite facing legal challenges, such as a cease and desist order for securities fraud in Texas, AWS Mining managed to rebrand itself as AWS Capital and continue its operations, primarily targeting markets in Mexico and Brazil.

The emergence of Novatech FX in 2019 marked a new chapter in this saga of scam. Cynthia Petion and Eddy Petion the former US leader of AWS Mining founded Novatech FX. Novatech FX presented itself as a legitimate trading and investment platform. However, its MLM structure and lack of tangible products or services mirrored those of AWS Mining. This continuation of fraudulent practices along with the company’s claims of registration in various jurisdictions being dubious, and its promised returns were unrealistic.

The legal troubles for NovaTech FX began to rise as it received securities fraud warnings from multiple jurisdictions, including Russia, Canada, and the United States. Regulatory bodies like the Ontario Securities Commission and the Alberta Securities Commission which identified Novatech FX as a scam, leading to cease and desist orders and legal actions. Despite these setbacks, Novatech FX attempted to maintain its operations by rebranding and relocating to forgiving regulatory environments.

The eventual downfall of NovaTech FX was marked by its inability to fulfill withdrawal requests and the exposure of its fraudulent nature. The involvement of key individuals like Cynthia and Eddy Petion in legal disputes and their criminal history further diminished the company’s reputation. The $2.3 billion RICO class action filed in New York against NovaTech FX signifies the magnitude of the scam.

The NovaTech FX scam serves as a stark reminder of the dangers posed by Ponzi and pyramid schemes. The web of deceit, the wide span of the scam and involvement of highly influential figures, underscores the importance of due diligence and regulatory oversight in protecting investors from such fraudulent activities. As the legal proceedings continue, the full extent of the damage caused by Novatech FX and its affiliates remains to be seen, but the lessons learned from this scam will undoubtedly resonate for years to come.

Despite Cynthia and Eddy being subjects of several investigations and facing penalties from regulatory and lawful authorities, and despite the old domains novatechfx.com and novatechfx.io being banned, they continue their schemes on https://novatech-fx.com/.

Leave a Comment