NovaTech FX has come up with securities fraud pseudo-compliance in response to a Californian order to stop securities fraud that was sent out last week.
NovaTech FX investors have received a “urgent request” from the Ponzi scheme in the last 24 hours.
go through your posts on social media (Facebook, Instagram, Twitter, YouTube, etc.) and make sure that any posts with a ROI or ANY advertisement or solicitation that has NOVATECH’s name or logo on it gets DELETED IMMEDIATELY and without hesitation!
If you see someone doing this, please talk to them and let them know. If they don’t delete these posts, their NOVATECH account could be closed.
The problem, of course, is that your fake investment scheme is still a fake investment scheme, no matter what you call it. So, this is called “pseudo-compliance.”
In the United States, securities fraud that has to do with MLM starts with finding an investment contract. The Howey Test is used to do this.
Under the Howey Test, an investment contract exists when “money is invested in a common enterprise with a reasonable expectation that profits will be made from the efforts of others.”
When it comes to NovaTech FX, the “common enterprise” is NovaTech FX itself. Affiliates invest because they are promised a return on investment (ROI) every week, which is “a reasonable expectation of profits.”
NovaTech FX is based on trading, which pays for “passive returns” and “profits to be made from the work of others.”
Since NovaTech FX’s MLM opportunity meets all of the requirements of the Howey Test, it is considered a securities offering under US law.
This shouldn’t surprise you. NovaTech FX was found to be selling unregistered securities by BehindMLM in 2019.
We believe that any MLM company that cheats investors out of money is a Ponzi scheme.
In terms of regulations, the fact that NovaTech FX has an investment contract means that it has to register with the SEC and file audited financial reports on a regular basis.
They aren’t, and this is probably why the SEC will sue them at some point.
When states start issuing “cease and desist” orders against securities fraud, the SEC isn’t far behind. But it’s impossible to know when the federal regulator will pull the trigger. The same goes for whether or not the DOJ will mix criminal charges.
In the last few years, the US government has been going after not only business owners but also the top promoters of MLM Ponzi schemes.
Investors will work hard to follow NovaTech FX’s “delete the evidence” order, but it won’t change the regulatory proceedings that are already going on.
The SEC and DOJ have never lost a case related to securities fraud because evidence was erased or because “this is not financial advice.”
Investors will do what NovaTech FX wants if they think they might lose their investment account (s). The funny thing is that it’s already too late to back out.
Investors in NovaTech FX who know how Ponzi schemes end are already telling others to “diversify” their investments.
“Diversify” is a word used by scammers to mean “take everything out.”
At the time this article was written, NovaTech FX had not made a public statement about California’s securities fraud stop and desist order. If there are any new developments, we’ll let you know.