News Summary
Two Milwaukee investment advisors, Christopher Nohl and Michael Hull, have been ordered to repay $27.5 million for defrauding over 100 investors. The U.S. District Court found them liable for securities fraud, misrepresenting the performance of their Greenpoint Tactical Income Fund. Investors were promised excessive returns while the fund’s actual performance was far from it. The court’s ruling highlights the consequences of securities fraud and the need for transparency in investment management.
Milwaukee – Two investment advisors from the Milwaukee area, Christopher Nohl and Michael Hull, have been ordered to repay a total of $27.5 million for defrauding over 100 investors through their fund, the Greenpoint Tactical Income Fund. U.S. District Judge William Conley issued the ruling on September 5, 2023, permanently barring Nohl and Hull from managing any securities businesses in the future.
The judgment stems from a case that began with charges from the U.S. Securities and Exchange Commission (SEC) in September 2019. A jury found both men liable for securities fraud in 2022 after lengthy proceedings. The court determined that Nohl and Hull deceived investors about the fund’s performance and the value of its assets.
Nohl and Hull operated the Greenpoint Tactical Income Fund through their management companies, Greenpoint Asset Management II and Chrysalis Financial. Based in Madison, they also had ownership over GP Rare Earth Trading Account LLC, which invested in gems and rare earth minerals. The fund raised approximately $52.7 million from 129 investors across ten states, including Wisconsin, between April 2014 and June 2019.
Despite claiming annual returns of up to 65%, the profits were found to be exaggerated. Investigators revealed that the men misrepresented the value of a private company within the fund as well as the physical gems and minerals within its portfolio. In particular, Nohl was said to have interfered with appraisals to present inflated asset values, enabling them to collect management fees based on these false valuations. They charged over $13 million in excessive management fees throughout the operation of the fund.
By 2017, investors were informed that the fund could not meet redemption requests due to a lack of liquidity. Out of approximately $62 million invested in the fund, investors only received about $9 million back. Following the jury’s finding of liability, the court ordered Nohl and Hull to repay $16 million collectively to the defrauded investors and $11.5 million to the U.S. Treasury.
The judge’s ruling also imposed civil penalties, requiring Nohl and Hull to each pay $5 million, with an additional $500,000 penalty levied against each of their three associated entities. This final judgment concluded a civil case that had persisted for six years.
Prior to this investigation, Michael Hull was previously connected to steering the Wisconsin Funeral Trust into a significant shortfall that resembled a Ponzi scheme. This earlier incident ultimately triggered the SEC’s investigation into the operations of Hull and Nohl’s gem fund.
With this latest ruling, the future of both men in the investment advisory field appears bleak. The legal consequences emphasize the serious nature of securities fraud and the regulatory measures in place to protect investors from deceptive practices. The ongoing scrutiny of investment management practices reinforces the necessity for transparency and accountability within the sector, highlighting the need for investors to conduct thorough due diligence before entrusting their funds to any investment vehicle.
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Additional Resources
- BizTimes: Milwaukee Area Fund Managers Ordered to Pay $27.5 Million for Securities Fraud
- JSONline: Men Behind Milwaukee Gem Investment Fund Ordered to Pay $27.5 Million
- Fox6Now: Cryptocurrency Scam Milwaukee Woman Loses
- Investment News: Ex-Advisor Gets Two Years in Prison for Running Fraudulent Auto Fund
- JSONline: Feds Charge Milwaukee Businessman with Securities Violations Defrauding Investors
- Wikipedia: Securities Fraud
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- Encyclopedia Britannica: Securities Fraud
- Google News: Milwaukee Investment Scam
Author: STAFF HERE MILWAUKEE WRITER
MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.
