Saskatchewan's Financial and Consumer Affairs Authority (FCAA) issued a securities fraud warning against NovaTech FX on December 13. This marks the fourth such alert from a Canadian province. The FCAA identified NovaTech FX as an investment opportunity offering stocks, forex, and cryptocurrency trading to residents.
This offering constitutes a securities product. None of the named entities or individuals possess the required registration to trade or sell securities within Saskatchewan.
The FCAA's warning specifically listed NovaTech LTD, a shell company registered in St. Vincent & the Grenadines. It also named NovaTech Advisors LLC and NovaPay LLC, both based in Florida, along with NovaTrading OU, an Estonian shell company. Three US-based individuals were identified: Cynthia Petion, co-founder and CEO; Eddy Petion, co-founder; and Ricardo Roy Sr., CTO.
Cynthia and Eddy Petion operate primarily from New York and Florida. Ricardo Roy Sr. is also based in Florida. A Ricardo Roy Jr. has appeared on LinkedIn, identifying himself as a NovaTechFX "Account Manager."
The Saskatchewan warning follows similar notices issued by three other Canadian provinces. Ontario, Alberta, and British Columbia previously alerted their residents about NovaTech FX's unregistered activities.
Beyond Canada's borders, regulatory warnings have come from California in the United States and from authorities in Russia.
Instead of seeking registration with regulators, NovaTech FX has reportedly begun offering investors refunds. These refunds, however, are taking nearly a month to process. Meanwhile, the company continues to pay recruitment commissions to its promoters on a weekly basis.
It remains unclear whether investor refunds follow the same timeline as the trading schedule or the quicker recruitment payout schedule. Reports also indicate that NovaTech FX has stopped responding to support tickets from its users.
Before establishing NovaTech FX, Eddy and Cynthia Petion held "leader" positions within the AWS Mining Ponzi scheme. AWS Mining collapsed in April 2019. The Petions launched NovaTech FX four months later, in August 2019, soon after the previous scheme's demise.
ScamTelegraph reviewed NovaTech FX during its launch month in August 2019. No verifiable evidence was ever provided to show the existence of "N-Tech," or to demonstrate legitimate trading activities or external revenue generation. The only discernible revenue source for NovaTech FX is new investment capital, which the company uses to fund recruitment commissions and pay existing investors.
NovaTech FX offers a passive investment opportunity. Under US law, this arrangement qualifies as a securities offering. The company is not registered with the Securities and Exchange Commission (SEC). This lack of SEC registration renders NovaTech FX's operations illegal within the United States, regardless of any other operational claims.
Given the business model, NovaTech FX is almost certainly recycling new investor funds to pay returns to existing investors, a common characteristic of Ponzi schemes.
The increasing regulatory scrutiny, persistent withdrawal delays, and the fact that NovaTech FX is operated by US nationals with a predominantly US investor base collectively point to a heightened risk. A federal US investigation into NovaTech FX is likely underway.
Individuals who suspect they are victims of investment fraud can report concerns to their provincial securities regulator or contact the Canadian Anti-Fraud Centre at 1-888-495-8501.