Not So Precious Gems... Milwaukee-based Advisers Under Investigation
By Sean Sweeney on November 06, 2019
The Securities Lawyers from Halling and Cayo, S.C. are investigating claims against Milwaukee-based investment advisors Christopher Nohl, Michael Hull, and their firm’s fund, Greenpoint Tactical Income Fund LLC.
The SEC is also seeking a permanent injunction against these investment advisers for an alleged $53 million in bad investments.
The Greenpoint Tactical Income Fund “claims remarkable returns on its purported investments” including a 2014 claim of a 65.7% ROI, according to the Securities and Exchange Commission. As alleged, the defendants helped generate these supposed returns by inflating the value of a private company that the fund invested in and by valuing physical gems and minerals in the fund's portfolio through methods that failed to comply with the procedures contained in the fund's operating agreement.
“These gains are largely fictitious.” - SEC Allegation
The fund’s net asset value of $135 million consisted of “almost entirely unrealized gains,” alleges the SEC. Of the $93 million in reported gains from the beginning of the fund (Feb 2013) to this June, “over 95% were unrealized based on the defendant’s improper valuations,” the SEC said.
The SEC filed its civil complaint against Nohl, Hull and their companies on Sept 30. Greenpoint Tactical Income Fund filed for Chapter 11 bankruptcy on Oct 4.
The fund is believed to have raised ~$53 million from 129 investors in 10 states, including investors on fixed incomes and older individuals “for whom risky illiquid investments were not appropriate.” It has been reported that some investors invested their entire life savings in Greenpoint funds.
If you’re an investor and have made investments with Nohl, Hull, or Greenpoint Tactical Income Fund, the Securities lawyers at Halling and Cayo, S.C. would like to take a look at your account and see if you might have a claim.
Sean M. Sweeney is a shareholder at Halling and Cayo, a full service law firm in Milwaukee, WI and the head of its Securities Litigation team. He represents individual and institutional investors in FINRA arbitration and court nationwide. He recovers investment losses from fraud or breach of duty from their broker or advisor.
Contact him at 414-877-8502 or via e-mail at SMS@hallingcayo.com to see if he and his team can help recover your funds.
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“At The Securities Lawyers, you get hands-on involvement from a partner level attorney. If I'm on your case, there will be associates and paralegals assisting, but I will be the one trying your case, negotiating settlements, and mediating your case.” Sean M. Sweeney