The Ontario Securities Fee has filed a Assertion of Allegations with Canada’s Capital Markets Tribunal.
As per the August twenty fifth filed assertion, OSC has requested the CMT
- certify that NovaTech FX and proprietor CEO Cynthia Petion dedicated securities fraud in Ontario;
- problem a everlasting injunction in opposition to NovaTech FX prohibiting additional acts of securities fraud;
- reprimand NovaTech FX publicly;
- order NovaTech FX pay an “administrative penalty of no more than $1 million for every failure to adjust to Ontario securities legislation”;
- order NovaTech FX to disgorge ill-gotten funds “obtained because of non-compliance with Ontario securities legislation”;
- order Cynthia Petion to step down as an officer or director of any firm providing securities in Ontario, together with NovaTech FX; and
- problem an injunction completely prohibiting Cynthia Petion from “performing as a director or officer” of any firm providing securities in Ontario.
OSC’s Assertion of Allegations opens by alleging NovaTech FX and Cynthia Petion
engaged in an aggressive and widespread marketing campaign utilizing the web and social media to promote securities to the investing public.
They offered these securities with out registration and with out prospectus disclosure. They continued to take action within the face of a stop commerce order issued by the Ontario Securities Fee.
These enterprise actions have additionally attracted issues by different Canadian and U.S. securities regulators.
NovaTech FX’s enterprise mannequin is offered as proof. OSC alleges NovaTech engaged in securities fraud through its’ “Proportion Allocation Administration Module (PAMM), via which buyers had been pitched “returns of roughly 3% per week with out ever sustaining a
loss.”
The OSC’s NovaTech December 2022 securities fraud warning and subsequent February 2023 Stop Commerce Order are additionally cited.
The Respondents breached this order by permitting reinvestments of purported returns into PAMM items, and by promoting new PAMM items to Ontario buyers.
Whereas the Respondents made adjustments to their web site to make it seem they had been limiting entry to Canadian buyers, people concerned in perpetuating NovaTech’s multilevel advertising and marketing scheme had been publicly disseminating directions on how one can circumvent geographic restrictions.
NovaTech didn’t adjust to the phrases of the a brief stop commerce order (TCTO).
Whereas the TCTO was in pressure, NovaTech continued to commerce in securities, together with by permitting reinvestments of purported returns into PAMM items, and by promoting new PAMM items to Ontario buyers.
I’m unsure how lengthy the CMT will take to problem an order on OSC’s Assertion of Allegations. I’m additionally unclear on how any such order could be enforced.
NovaTech FX collapsed in February 2023. Cynthia Petion and husband Eddy, US nationals, haven’t been seen in public since late 2022.
California issued a NovaTech FX securities fraud stop and desist in November 2022. Wisconsin adopted up by fining NovaTech FX and the Petions $50,000 for securities fraud violations in April 2023.
Past that although, US authorities are as of but to take additional motion.
Pending an replace on the OSC’s Assertion of Allegations, we’ll preserve you posted.
