New York Seeks $1.3 Billion From NovaTech Founders Over Crypto Scam

Investigators revealed a stark discrepancy between the funds collected and those actually invested. While NovaTech secured more than $1 billion in cryptocurrency from investors between 2019 and 2023, records indicate that less than $26 million reached the company’s trading platform. The vast majority of the capital was diverted, with Cynthia Petion alone allegedly authorizing the transfer of at least $134.5 million into personal wallets held by her and her husband. Prosecutors calculated the $1.367 billion disgorgement request by totaling the diverted funds and adding prejudgment interest.

The four promoters—Martin Zizi, Frantz Ciceron, Ricardo Roy Sr., and James Corbett—have been permanently barred from the securities and cryptocurrency industries. Their settlements, totaling roughly $5.98 million, will be directed toward victim restitution. The state’s case centers on the defendants’ exploitation of Haitian immigrant communities, using religious gatherings and private social media groups to peddle fabricated returns of 2% to 4% per week. With the Petions currently out of the country and failing to respond to the lawsuit, a New York court issued a default judgment against them in August, setting the stage for the current financial recovery efforts.