NovaTech FX & Petions Charged With Fraud in Washington
Washington regulators have charged NovaTech FX and its operators Cynthia and Eddie Petion with securities fraud, filing a cease and desist order on October 27th.
The Securities Division of Washington's Department of Financial Institutions says the Petions and their company violated state securities law by peddling unregistered investments to over 1,000 Washington residents. NovaTech operated as a cryptocurrency-based MLM trading bot scheme—essentially a Ponzi operation dressed up in fintech language.
The scheme worked like this: the Petions convinced investors to buy "PAMM Accounts"—percentage allocation management module accounts—through aggressive social media campaigns on Facebook, Instagram, and Telegram. None of these accounts were registered with the state. Neither Cynthia nor Eddie Petion held any legitimate licenses to sell securities.
NovaTech Ltd itself is a shell company registered in St. Vincent and Grenadines but operated out of Royal Palm, Florida. According to the DFI order, both Petions are former Royal Palm residents whose "present whereabouts are unknown." They vanished in late 2022, months before NovaTech officially collapsed in February 2023.
The regulatory filing reveals the scale of the deception. Regulators note that NovaTech never registered to sell securities in Washington and filed no exemption claims. The Petions similarly never registered as securities salespeople or brokers. They simply didn't bother with the law.
Instead, they relied on social media to reach victims. The platforms gave their operation a veneer of legitimacy—just another investment opportunity scrolling past people's feeds. They marketed the PAMM accounts as passive income through automated trading, a claim that regulators determined constituted the sale of unregistered securities under Washington law.
The DFI order cites violations of two sections of Washington's Securities Act: one prohibiting the sale of unregistered securities and another barring unlicensed individuals from acting as brokers or salespeople. Every count applies to all three respondents.
The Petions' disappearance suggests they knew what was coming. Running a securities scheme of this scale doesn't happen by accident. They built infrastructure, recruited investors systematically, and moved money across borders through a foreign shell company. Then they ghosted.
What happens next remains unclear. The DFI issued a summary cease and desist order, which theoretically stops the operation immediately. But stopping a scheme that's already collapsed and whose operators have fled is more symbolic than practical. The real question is whether federal authorities will pursue criminal charges and whether any investor money can be recovered.
For now, over 1,000 Washington residents are out the money they invested in trading bots run by people they've never met, through a company that never existed in any meaningful sense. The Petions are somewhere, their whereabouts unknown, and their victims are left holding empty accounts.
🤖 Quick Answer
What were NovaTech FX and the Petions accused of in Washington?NovaTech FX and operators Cynthia and Eddie Petion were charged with securities fraud by Washington regulators on October 27th for selling unregistered investments to over 1,000 residents, violating state securities law through a cryptocurrency-based MLM trading bot scheme.
How did the NovaTech FX scheme operate?
The Petions promoted "PAMM Accounts" (percentage allocation management module accounts) through aggressive social media campaigns on Facebook, Instagram, and Telegram, structuring the operation as a Ponzi scheme disguised in fintech language.
What regulatory action was taken against NovaTech FX?
Washington's Department of Financial Institutions Securities Division issued a cease and desist order against NovaTech FX and its operators, prohibiting further unlicensed
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