SEC v. NovaTech

The SEC filed a complaint on August 12, 2024, in the U.S. District Court for the Southern District of Florida against Nova Tech, Ltd., Cynthia Petion, Eddy Petion, Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley, alleging a $650 million fraudulent scheme targeting over 200,000 investors worldwide, particularly in the Haitian-American community, from 2019 to 2023. Operating as a multi-level marketing (MLM) and crypto asset investment program, Nova Tech falsely promised safe investments in crypto and forex markets. Instead, most funds were used for Ponzi-like payments to existing investors, promoter commissions, and personal enrichment by the Petions. The scheme collapsed, leaving most investors unable to withdraw funds. The SEC alleges violations of antifraud provisions and registration requirements under the Securities Act of 1933 and Exchange Act of 1934. On August 15, 2024, Martin Zizi partially settled, agreeing to a $100,000 civil penalty and permanent injunction, with further monetary remedies pending court approval. The case was terminated on September 30, 2024, for scheduling purposes, but status reports (latest March 31, 2025) indicate ongoing efforts to serve foreign defendants (Cynthia Petion, Eddy Petion, Nova Tech) via letters rogatory. The case remains active against other defendants as of May 20, 2025, seeking permanent injunctions, disgorgement, and civil penalties.