A Florida-based forex trading scheme that promised investors 3% weekly returns without losses has triggered enforcement action from Ontario's top securities regulator.

The Ontario Securities Commission filed allegations against NovaTech FX and its owner Cynthia Petion on August 25th, accusing them of running an aggressive online campaign to sell unregistered securities across Ontario. The OSC is asking Canada's Capital Markets Tribunal to slap the company with penalties up to $1 million for each violation of securities law, force disgorgement of fraudulent proceeds, and permanently ban Petion from serving as an officer or director of any company offering securities in the province.

The scheme operated through what NovaTech called its Percentage Allocation Management Module, or PAMM. Investors were promised consistent 3% weekly returns with zero losses—a claim that should have raised red flags immediately. The OSC alleges NovaTech pushed these securities across social media and the internet without proper registration or prospectus disclosure.

When the OSC issued a cease trade order in February 2023, NovaTech ignored it. The company allowed investors to reinvest their supposed returns into new PAMM units and continued recruiting fresh Ontario investors. While the company made cosmetic changes to its website suggesting it was blocking Canadian access, people involved in NovaTech's multilevel marketing operation publicly posted instructions on how to bypass geographic restrictions.

The regulators had been circling for months. The OSC issued a fraud warning in December 2022. California followed with its own cease and desist order in November 2022. Wisconsin later fined NovaTech and the Petions.

NovaTech imploded in February 2023. Cynthia Petion and her husband Eddy, both U.S. nationals, disappeared from public view by late 2022 before the collapse. Neither has been seen since.

The Capital Markets Tribunal now faces the task of ruling on the OSC's allegations. How long that takes and whether any order can actually be enforced remains unclear. By the time regulators moved, the operation had already vanished and the damage to investors was done.

🤖 Quick Answer

What enforcement action did the Ontario Securities Commission take against NovaTech FX?
The OSC filed allegations against NovaTech FX and owner Cynthia Petion on August 25th for operating an unregistered securities scheme. The regulator seeks penalties up to $1 million per violation, disgorgement of fraudulent proceeds, and permanent ban of Petion from serving as officer or director in Ontario's securities industry.

How did the NovaTech FX scheme attract investors?
The Florida-based forex trading operation promised investors consistent 3% weekly returns without losses through an aggressive online campaign targeting Ontario residents. The scheme utilized a structure called the Percentage Allocation Management Module (PAMM) to solicit investments in unregistered securities.

What are the potential consequences for NovaTech FX and its owner?
NovaTech FX faces penalties reaching $1 million

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