In addition to NovaTech and the Petions, the SEC has named several NovaTech promoters as defendants in its securities anti-fraud suit. The SEC is seeking permanent injunctive relief, disgorgement of ill-gotten gains, and civil penalties. This lawsuit is part of the SEC's broader crackdown on legally dubious crypto ventures, which has seen over 100 crypto-related actions taken by the agency over the past decade.
Key takeaways:
- The U.S. Securities and Exchange Commission (SEC) is suing crypto startup NovaTech and its founders, Cynthia and Eddy Petion, for allegedly fraudulently raising over $650 million from more than 200,000 investors.
- The SEC alleges that NovaTech was a multi-level marketing (MLM) scheme that claimed to invest in profitable crypto and foreign exchange markets, but in reality, used most of the funds to pay existing investors and commissions for promoters.
- The SEC is also suing NovaTech promoters Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano and Marsha Hadley in its securities anti-fraud suit, seeking permanent injunctive relief, disgorgement of ill-gotten gains and civil penalties.
- This lawsuit is part of the SEC's broader crackdown on legally dubious crypto ventures, with the agency having taken over 100 crypto-related actions over the past decade.