NovaTech FX has implemented securities fraud pseudo-compliance in response to a Californian securities fraud cease and desist order issued last week.
The Ponzi scam has issued a “urgent request” to NovaTech FX investors in the last 24 hours.
Go through your social media postings (Facebook, Instagram, Twitter, YouTube, etc.) and make sure that any/all posts with a ROI or ANY advertising, solicitation with NOVATECH’s name or logo on it… gets DELETED IMMEDIATELY & WITHOUT RESERVATION!
If you witness somebody doing so, please speak with/inform them. Failure to delete/remove such posts may result in the closure of their NOVATECH account.
The difficulty is that whatever you name your dishonest investment program, it is still a fraudulent investment scam. As a result, “pseudo-compliance” was coined.
In the United States, MLM-related securities fraud begins with the identification of an investment contract. The Howey Test is used to do this.
An investment contract occurs if there is a “investment of money in a joint venture with a reasonable expectation of rewards to be received from the labor of others,” according to the Howey Test.
NovaTech FX is the “common enterprise” in its own right. Affiliates make investments based on the promise of a weekly ROI that meets “a realistic expectation of earnings.”
NovaTech FX represents passive returns that are supported through trading, satisfying “earnings acquired through the labor of others.”
As a result of meeting both prongs of the Howey Test, NovaTech FX’s MLM opportunity qualifies as a securities offering under US law.
This should not be surprising. In 2019, BehindMLM recognized NovaTech FX as an unregistered securities offering.
We believe that every MLM firm that commits securities fraud is a Ponzi scheme.
To return to regulation, the existence of an investment contract necessitates NovaTech FX’s registration with the SEC and the submission of periodic audited financial reports.
They aren’t, and this is likely to result in an SEC lawsuit at some time.
When states issue securities fraud stop and desist orders, the SEC isn’t far behind. However, when the federal regulator pulls the trigger cannot be anticipated with certainty. The same is true for whether the DOJ will combine criminal charges.
There has certainly been a recent trend of US authorities going after not only firm owners, but also prominent marketers of MLM Ponzi schemes.
While investors will hurry to comply with NovaTech FX’s “remove the evidence” demand, it will have no impact on ongoing regulatory procedures.
The SEC and DOJ have never lost a case involving securities fraud because evidence was destroyed, and “this is not financial advice.”
The prospect of losing their investment account will compel investors to comply with NovaTech FX’s demands (s). The irony is that it is, of course, too late to withdraw.
NovaTech FX investors who are familiar with the endgames of Ponzi schemes are already instructing others to “diversify.”
“Diversify” is scamming jargon meaning “withdraw everything.”
NovaTech FX had not publicly addressed California’s securities fraud cease and desist order at the time of publication. We’ll keep you updated when more information becomes available.