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Key takeaways
- On October 22, 2026, New York Attorney General Letitia James announced settlements under which four top NovaTech and AWS Mining promoters will pay nearly $6 million for victims and face a lifetime ban from securities, commodities and crypto work.
- Her office says investors deposited over $1 billion in crypto with NovaTech from 2019 to 2023, but less than $26 million was ever traded. More than 11,000 New Yorkers put money into NovaTech or its forerunner, AWS Mining.
- The scheme spread through prayer groups, social media and WhatsApp chats in immigrant communities. That is affinity fraud: scammers borrow the trust inside a group, so the person pitching you may be a victim too.
New York has settled with four people who promoted NovaTech, a crypto trading program its Attorney General calls a pyramid scheme. The amounts are small next to the losses, but the case is a clear example of how crypto fraud travels through trusted communities, and what to look for before it reaches you.
What New York announced
On October 22, 2026, New York Attorney General Letitia James said four of the scheme's top promoters will pay disgorgement, meaning money given up for the benefit of victims, and face a lifetime ban from working in securities, commodities or crypto. According to her office, the amounts are:
- $2.9 million from Martin Zizi
- $2.05 million from Frantz Ciceron
- $750,000 from James Corbett
- $275,861 from Ricardo Roy, Sr.
The Haitian Times, which covered the announcement, put the combined total at $5.98 million. The office had accused the four of misleading investors, acting as unregistered brokers and taking part in an illegal pyramid scheme. They settled without admitting or denying those claims.
The same day, the office asked a judge to make NovaTech's founders, Cynthia and Eddy Petion, pay $1.3 billion, covering both damages and disgorgement. A court issued a default judgment against them in August 2025, and the Attorney General says the couple fled the country.
How the scheme worked, according to the Attorney General
The story starts with AWS Mining, which claimed to earn money by mining crypto. Its promoters promised 15 to 20 percent a month, 200 percent within 15 months, and bonuses for bringing in new investors. It collapsed in 2019.
The Petions then launched NovaTech, which advertised trading profits of about two to four percent a week. The Attorney General says it falsely described itself as a registered hedge fund broker and as licensed to trade crypto in the US, and told investors they could withdraw at any time.
The numbers tell the rest. Her office says investors deposited more than $1 billion worth of crypto with NovaTech between August 2019 and April 2023, yet less than $26 million was ever traded. NovaTech fell apart in May 2023, leaving tens of thousands of people unable to get their crypto out. More than 11,000 New Yorkers had put money into NovaTech or AWS Mining.
New York sued in June 2024. In August 2024 the SEC filed its own federal case, alleging that NovaTech raised more than $650 million from over 200,000 investors worldwide, many of them Haitian-American. It also charged several promoters, including Zizi and Corbett. In March 2026 the court clerk entered a default against NovaTech and the Petions for failing to respond. The SEC's claims remain allegations in a complaint.
Why it spread: affinity fraud
According to the Attorney General, the scheme reached people through prayer groups, social media and WhatsApp chats, using ads written in Haitian Creole and faith-based messages. The SEC has a name for this pattern: affinity fraud. In its investor alert, it explains that scammers target a group by joining it, or pretending to, and by recruiting respected members to spread the word. Those members may not know the investment is fake and can end up as victims themselves.
That is what makes these schemes hard to stop. The pitch comes from a friend, a relative or someone at church, and early investors really are paid, out of newer investors' money, which looks like proof that it works. That is the basic mechanics of a Ponzi scheme.
What this means for you
- Check the person, even if you trust them. The SEC's advice is to research both the investment and the person offering it, however trustworthy they seem. They may have been fooled too.
- Test every "registered" or "licensed" claim. NovaTech's claims about being a registered broker and licensed to trade crypto in the US were false, according to the Attorney General. Look the firm up on Investor.gov and FINRA BrokerCheck, and ask your state securities regulator.
- Treat recruiting bonuses as a red flag. If you earn more by signing people up than from the product itself, the money is probably coming from new members.
- Get it in writing and take your time. The SEC warns against offers you can't get in writing, offers you are told to keep secret, and pressure to decide quickly.
- Beware of recovery offers. After a collapse, victims are often targeted again by people promising to get their money back for a fee. See our guide to recovery scams.
If you think you have run into a scheme like this, the SEC asks people to report it through its complaint center or to their state securities regulator.
The takeaway
NovaTech didn't need a sophisticated hack. It needed trust, a promise of steady returns and people who were paid to recruit. The best defense is the same whether a pitch comes from a stranger online or a friend at church: verify the seller, question any guaranteed return, and never let a recruiting bonus stand in for evidence. For more warning signs, see our scams and security hub. This is education, not legal or financial advice, and it reflects the Attorney General's announcement as of October 22, 2026.
Frequently asked questions
What is affinity fraud?
The SEC describes it as investment fraud aimed at members of a group, such as a religious or ethnic community. The fraudsters often are, or pretend to be, members of that group, and they recruit respected insiders who may not know it is a scam.
Did the four promoters admit wrongdoing?
No. Zizi, Ciceron and Corbett settled through court consent orders and Roy through a separate agreement with the office, and each one neither admits nor denies the allegations. They still pay disgorgement and face a lifetime industry ban. The SEC's 2024 case remains allegations in a federal complaint; Zizi partly settled it, also without admitting or denying.
Will NovaTech investors get money back?
The settlement money is meant to benefit victims, but some of it arrives in installments over several years, and part of Corbett's share is due only if his income passes a set level. The Attorney General is also asking a court to order the founders to pay $1.3 billion, which may be hard to collect because her office says they fled the country. No claims process had been announced as of October 22, 2026, so ignore anyone who offers to recover your money for a fee.
How do I check whether an investment offer is registered?
Search the person or firm on the SEC's Investor.gov and on FINRA BrokerCheck, and call your state securities regulator. A legitimate seller will not mind you checking, and a claim of being registered or licensed is easy to test.
Sources
- Attorney General James Secures Nearly $6 Million From Crypto Scammers Who Targeted Haitian Communities (opens in a new tab) — New York State Attorney General
- Attorney General James Sues Cryptocurrency Companies NovaTechFx and AWS Mining for Defrauding Investors of More Than $1 Billion (opens in a new tab) — New York State Attorney General
- SEC Charges Alleged Crypto Company NovaTech and its Principals and Promoters with $650 Million Fraud (opens in a new tab) — US Securities and Exchange Commission
- Investor Alert: Affinity Fraud (opens in a new tab) — US Securities and Exchange Commission
- People of the State of New York v. Nova Tech Ltd. et al.: Corbett stipulation and consent order (PDF) (opens in a new tab) — New York State Attorney General
- Ricardo Roy Sr. Assurance of Discontinuance (PDF) (opens in a new tab) — New York State Attorney General
- SEC v. Nova Tech Ltd.: clerk's entry of default (PDF) (opens in a new tab) — US Securities and Exchange Commission
- New York secures nearly $6 million from crypto scammers who targeted Haitian communities (opens in a new tab) — The Haitian Times
Published October 23, 2026 by Dave McNaught. Educational content, not financial, legal or tax advice. Spot an error? Request a correction.
Dave McNaught
Dave McNaught has worked in IT since 1999 and founded All Business Technologies (ABT) in 2003, a Boston-area firm providing Managed IT, Cybersecurity, Managed AI, Web Design and App Development. He publishes The Crypto Guide.