Wisconsin regulators ordered NovaTech FX to cease operations on April 4th, imposing a $50,000 civil penalty for securities fraud. The state's Department of Financial Institutions (DFI) named operators Cynthia and Eddie Petion, their St. Vincent and Grenadines company Nova Tech Ltd, and Pittsburgh promoter Paul J. DeRenzo in the action. The DFI also mandated restitution to affected investors.
The Petions carry a significant history of financial distress. They filed for Chapter 7 bankruptcy in New York in 2011, a process that liquidates assets to pay creditors. Following this bankruptcy, creditors pursued them for years. A mortgage lender foreclosed on their Florida property in July 2018. Between April 2018 and October 2017, credit card companies sued both Cynthia and Eddie in Palm Beach County, Florida. Cynthia faced a judgment for $11,776, and Eddie for $4,740.56. A debt buyer also sued Cynthia in August 2019 for an unpaid loan.
Despite this record, the couple launched NovaTech FX, a foreign currency trading scheme. The operation attracted warnings from financial regulators in Russia, British Columbia, and California before Wisconsin initiated its enforcement action.
Paul J. DeRenzo served as a key promoter for NovaTech FX. He placed advertisements on Craigslist, promising substantial, passive income. "We Trade For You—Get Paid Every Week," his ads declared. DeRenzo claimed investors could expect "steady profits" and "completely passive income," with "returns averaging over 3% per week." He stressed that no special knowledge was required, joining was free, and withdrawals were available at any time.
A Wisconsin resident responded to one of DeRenzo's Craigslist posts on November 16th, 2022. DeRenzo contacted the resident the same day, providing a Zoom link for a presentation hours later. During this call, DeRenzo pitched NovaTech FX as an investment offering "almost 3% a week," a rate the company could not substantiate.
Investors sent money, anticipating the promised weekly payouts. Some initial payments did occur, a common tactic designed to build confidence in new participants. However, the advertised returns quickly failed to materialize. Customers then found themselves unable to access their funds when they attempted to withdraw money.
Wisconsin's DFI determined that NovaTech FX violated state securities laws through fraudulent solicitation and misrepresentation. The DFI's order demands that the Petions and DeRenzo immediately cease soliciting new investors and return all losses to their victims.
The case illustrates a broader challenge for financial regulators. Individuals with documented histories of financial mismanagement often re-establish themselves online, targeting those seeking quick returns. The ease of setting up such operations and the speed with which funds can be transferred across jurisdictions make detection and enforcement complex. By the time regulators in one state act, the operators frequently have already moved on to recruit investors in other regions.
Anyone who invested with NovaTech FX or suspects they are a victim of a similar scheme should contact their state securities regulator or the Securities and Exchange Commission directly.