Bluepoint Investment Counsel, LLC, Michael Hull, Christopher Nohl, Greenpoint Asset Management II, LLC, and Chrysalis LLC are named in an SEC complaint in connection with the operation of Greenpoint Tactical Income Fund.
The Sonn Law Group is investigating claims that Michael Hull and Christopher Nohl committed violations of federal securities law. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.
The complaint, filed by the SEC on September 30, 2019, alleges that in the offering materials for Greenpoint Tactical Income Fund (Greenpoint Tactical) Hull, Nohl, and their entities made false and misleading statements to the investors by representing Greenpoint Tactical as an “income” fund, when in reality the Fund’s holdings are almost entirely non-income-generating and illiquid assets.
Greenpoint Tactical has purportedly claimed annual returns of up to 65%. The defendants allegedly 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 procedures contained in the fund’s operating agreement.
The complaint also alleges that the defendants improperly charged the Fund excessive management fees of over $13 million, while at the same time telling investors that their redemption requests could not be satisfied due to illiquidity. Interests in the Fund are still being sold, the proceeds of which are used to pay management fees to the defendants, repay debts, and pay some investor redemptions.
Finally, the SEC alleges that the defendants and their entities engaged in self-dealing and failed to disclose conflicts of interest, including numerous undisclosed short-term loans to the Fund — some of them with annualized interest rates exceeding 100% — and the Fund’s undisclosed payment of service fees to the entities Hull and Nohl owned.
The SEC is seeking injunctive relief, disgorgement of ill-gotten gains, and civel penalties.
The defendants named in the complaint are as follows:
Michael Hull — A resident of Oconomowoc, Wisconsin who was a principal and investment adviser representative of Bluepoint Investment Counsel, LLC from June 2012 through March 2019. Hull is the co-manager of Greenpoint Tactical Income Fund, Greenpoint Global Mittelstand Fund I, and Greenpoint Fine Art Fund.
Christopher Nohl — A resident of Milwaukee, Wisconsin who is the co-manager of Greenpoint Tactical Income Fund and owner of Chrysalis Financial, LLC.
Bluepoint Investment Counsel, LLC — A Wisconsin LLC owned by Michael Hull and his brother. Bluepoint was registered with the SEC as an investment adviser from June 2012 through March 2019.
Chrysalis Financial, LLC — A Wisconsin LLC owned by Christopher Nohl. Chrysalis is one of two Managing Members of Greenpoint Tactical.
Greenpoint Asset Management II, LLC — A Wisconsin LLC owned by Hull and his brother. It is the other Managing Member of Greenpoint Tactical.
Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed acts in violation of FINRA Rules, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.