NYAG Sues 2 Crypto Pyramid Schemes, Promoters Targeting Haitian-Americans in $1B Scam

As a crypto investor following news closely, I’ve come across troubling reports regarding two alleged schemes named AWS Mining and NovaTechFX. According to the recent complaint filed on Thursday, these platforms exploited Creole-speaking church-goers through WhatsApp group chats, deceitfully extracting over $1 billion from unsuspecting investors.

An Australian company named AWS Mining, which emerged in 2017 and ceased operations in 2019, promised investors a 200% return on their crypto mining investment within a timeframe of 13-15 months. AWS Mining remunerated its promoters, such as Cynthia and Eddy Petion, a Panamanian couple originally from Florida, by awarding them a 10% commission from the investments brought in by recruited new investors, along with additional bonuses and honorary titles.

As a crypto investor looking back at the events, I recall how AWS Mining had two influential figures among its promoters – The Petions. Each of them managed to bring in over 200,000 investors under their wing, earning them both the prestigious title of “President” within the company. Sadly, AWS Mining faced financial troubles and went bankrupt in April 2019. Undeterred, The Petions decided to team up and establish a new venture named NovaTechFX. In this new endeavor, Cynthia took on the role of CEO while Eddy became the COO. NovaTechFX presented itself as a crypto trading and foreign exchange platform, promising weekly returns as high as 4%.

As an analyst, I’ve discovered that the Petions reportedly brought on board ex-promoters from AWS Mining for their new business venture, among whom are Martin Zizi, James Corbett, and Frantz Ciceron, who have been identified as defendants in James’ lawsuit. Much like AWS Mining did, they compensated these individuals with a percentage of the investments made by the investors they successfully recruited to their platform.

From August 2019 to April 2023, investors of NovaTech invested more than a billion dollars into the company as stated in the lawsuit. Prior to regulatory authorities’ scrutiny in June 2022, resulting in cease-and-desist letters for fraud and securities violations, the Petions covertly sold their Florida house and relocated to Panama, according to James’ complaint.

Cynthia additionally urged her supporters to depart from the United States: According to reports, Petion is said to have instructed Zizi with a lighthearted tone, “Flee the country.” “They won’t be able to assist you if they can’t locate you,” he jokingly added.

come December 2022, following the dramatic demise of crypto exchange FTX, numerous NovaTech investors were clamoring for their funds to be returned from the platform. In February 2023, the firm put a halt on withdrawals, and by May of that year, it had ceased operations, leaving investors with a substantial shortfall – approximately “tens of thousands” of deposits – and collectively facing “hundreds of millions of dollars” in losses.

Affinity fraud

Based on the court document, the Petitions and their workers reportedly targeted Haitian immigrants predominantly in religious settings for exploitation.

As a crypto investor, I’ve come across some intriguing characters in this industry, and Cynthia Petion is one of them. She styled herself as “the Reverend CEO” after founding NovaTech. According to reports, she claimed that God gave her a divine vision of the company while she was simply brushing her teeth. Intriguingly, she referred to Jesus as “the best affiliate market in the world.” Petion and her associates were known for organizing regular prayer groups where they would advertise their alleged scheme.

Zizi and the promoters praised Cynthia’s innovative spirit by drawing comparisons to Harriet Tubman, America’s renowned abolitionist hero. They expressed to investors that Cynthia had “guided countless individuals toward enlightenment” and “created paths through the chaos, leading the way forward.”

The founders and advocates of NovaTech enthusiastically pitched the investment opportunity to numerous individuals, some of whom were financially struggling, as a means to achieve “your first million,” establish a “legacy,” and secure “financial independence,” as stated in the lawsuit.

Behind closed doors, NovaTech’s founders disparaged their investors as a “devoted following.” Cynthia Petion reportedly referred to herself as the “ringleader” during a conversation with a promoter, implying that her investors were mindless devotees who blindly agreed with everything she said without questioning.

Court records show the Petions previously filed for bankruptcy due to consumer debt in 2011.

The Petions and other NovaTech promoters’ suspected affinity fraud bears striking resemblance to the crypto pyramid scheme orchestrated by EminiFX founder Eddy Alexandre. Alexandre, who targeted Haitian religious communities, was apprehended in 2022 on charges of defrauding investors out of $240 million. In 2023, he admitted guilt to commodities fraud and received a 9-year prison sentence.

Lawsuits

James has filed a lawsuit against AWS Mining, NovaTech, The Petions, and other named defendants, accusing them of breaching the Martin Act, New York’s stringent anti-fraud legislation, through alleged repeated fraudulent activities and persistent illegality. The aim of this legal action is to secure compensation and restitution for the affected parties, as well as securing permanent injunctions that would prevent the defendants from engaging in any future investment schemes.

As a researcher, I would express it this way: A class action lawsuit was initiated against NovaTech and Cynthia Petion earlier in the year. Subsequently, the New York Attorney General (NYAG) has filed a separate suit based on the same allegations.

There are not currently any criminal charges against the Petions or the other promoters.