SEC Obtains Investigative Subpoena Against NovaTech Crypto Investment MLM Promoters

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David Pokima

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David Pokima

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David is a finance journalist and a contributor to Cryptonews.com with a keen interest in breaking comprehensive, accurate, and reliable blockchain news.

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February 15, 2024

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The United States Securities and Exchange Commission (SEC) has announced that it obtained a court order to enforce an investigative subpoena against two NovaTech crypto investment scheme promoters.

In a recent press release, the financial regulator disclosed updates in its investigation against NovaTech Crypto Investment promoters.

On Feb 13, the US District Court for the Northern District of Texas granted an application to enforce a subpoena against Dapilinu Dunbar and Corrie Sampson. The subpoena against both men will ensure the production of critical documents and testimony issued to Sampson.

Dunbar and Sampson are currently being investigated by the SEC for their role in NovaTech as they successfully climbed the company ladder. Specifically, the SEC is investigating a breach of federal securities laws in the order and sales of interests in NovaTech.

As a multi-level marketing scheme, NovaTech recruits investors to its program with Dunbar and Sampson obtaining the two highest ranks.

“According to the SEC’s filing, the SEC is investigating whether certain persons, including Dunbar and Sampson, violated the federal securities laws in connection with the offers and sales of interests in NovaTech, a purported crypto asset investment program marketed to individual investors in the United States and worldwide.”

Respondents Thwart SEC’s Efforts

Events leading up to this announcement show that the Commission attempted to get the documents required for investigation from both men.

According to the release, the SEC has previously served subpoenas to produce the documents alongside compelling their testimony.

However, despite all investigative efforts by the financial authority, the respondents failed to make the documents in question available or furnish the Commission with the desired testimony.

As a result, the SEC doubled its effort by seeking an order to mandate both men to provide all needed documents. The court granted the application and ordered Sampson to appear for testimony. Per the SEC:

“If a person or entity refuses to comply with a subpoena issued by SEC enforcement staff pursuant to a formal order of investigation, the Commission may file a subpoena enforcement action in federal district court seeking an order compelling compliance.”

Investigation Ongoing, No Conclusions Drawn

The SEC investigation is conducted by Catherine Riwsey, Jamie Haussecker, and Todd Baker adding that it has not concluded that any individual breached federal securities laws.

The financial regulator continues its effort to curb perceived irregularities in cryptocurrency investment and offers to protect users.

Last year, the Commission instituted several cases against cryptocurrency firms on the back of the FTX implosion. Aside from wiping billions from the market, the FTX saga opened up a series of global regulatory onslaughts on market players.

According to market analysts and executives, the Gary Gensler-led SEC’s approach to regulatory scrutiny is strict, stifling, and capable of driving investors to foreign markets.