Ontario Securities Commission warns you that NovaTech FX & CEO Cynthia Petion

On September 28, 2023, the Capital Markets Tribunal held a hearing regarding the allegations brought against NovaTech FX and its founder and CEO, Cynthia Petion. What makes this case intriguing is that Cynthia Petion did not attend the hearing, raising questions about the future of NovaTech FX and its controversial investment activities.

Cynthia Petion: The Person Behind NovaTech FX

Cynthia Petion is not just the CEO of NovaTech FX; she is its founder, sole director, shareholder, and beneficial owner. With a pivotal role in the company's operation since its inception, she is widely regarded as the directing mind of NovaTech. According to the company's website, Petion is responsible for every facet of the organization, from creating and implementing strategic directions to managing research and development strategies, overseeing operations, marketing initiatives, brand recognition, finances, compensation, and new product development. Her influence and decision-making have been at the heart of the allegations against NovaTech FX.

The Description of the Case

The Ontario Securities Commission released a statement of allegations against NovaTech FX and Cynthia Petion on August 24, 2023. The case revolves around NovaTech FX's aggressive and widespread campaign to sell securities to the investing public via the Internet and social media. What's more alarming is that they did so without proper registration and prospectus disclosure, even in the face of a cease trade order issued by the Ontario Securities Commission. These activities have also drawn scrutiny from other Canadian and U.S. securities regulators.

The company created a product known as the “Percentage Allocation Management Module” or “PAMM” and utilized a complex multi-level marketing scheme to sell units of this product, which qualify as securities. Their website, social media, and YouTube videos were instrumental in promoting the PAMM product and soliciting investors. NovaTech FX advertised the PAMM product as a way for investors to passively earn returns on their investments, all while claiming returns of approximately 3% per week without incurring losses. Videos posted on their YouTube channel featured Cynthia Petion and others making enticing statements to attract investors.

The case took a concerning turn in early February 2023 when NovaTech FX announced a “temporary freeze” on withdrawals from investor accounts but continued to accept new investments in the PAMM product. These actions have ignited a legal battle that is now unfolding in the Capital Markets Tribunal.

Regulatory Hearing and Next Steps

The Capital Markets Tribunal is an independent division of the Ontario Securities Commission established by the Securities Commission Act, 2021. On September 28, 2023, the Capital Markets Tribunal held a hearing regarding the NovaTech FX case, but notably, Cynthia Petion did not attend. During the hearing, only representatives from the Ontario Securities Commission were present. The tribunal ordered the following:

By 4:30 p.m. on November 17, 2023, Staff shall serve and file their Notice of Motion and motion materials with respect to waiver of service and further relief.

By 4:30 p.m. on November 24, 2023, the respondents shall file responding materials, if any, with respect to Staffs Notice of Motion regarding waiver of service and further relief.

A further attendance in this matter is scheduled for November 27, 2023, at 9:00 a.m., by videoconference, or on such other date and time as may be agreed to by the parties and set by the Governance & Tribunal Secretariat.

NovaTech FX on WikiFX: What Do We Review it？

The allegations against NovaTech FX and Cynthia Petion are concerning, with potential implications for investors and the broader financial market. WikiFX has rated NovaTech FX with an alarmingly low score of 1.45/10, highlighting the evident risks associated with investing in this platform.

As the case unfolds, the financial community will be watching closely to see how the regulatory hearing on November 27, 2023, will impact NovaTech FX, its CEO Cynthia Petion, and the investors affected by these allegations. The outcome could have far-reaching consequences for the financial industry and the regulation of online investment platforms. What do you think about this fraud case？