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The United States Securities and Exchange Commission is taking two Wisconsin business owners to federal court for $52.8 million worth of alleged fraudulent investments involving gemstones, minerals and a now-defunct environmental-remediation company.
The SEC filed a complaint on Monday against Michael Hull of Oconomowoc, Christopher Nohl of Milwaukee and their companies: Bluepoint Investment Counsel, LLC; Chrysalis Financial LLC; and Greenpoint Asset Management II LLC.
Financial statements showed just over half of the fund’s value is in gems and minerals and that most of the money was invested in a now-defunct environmental-remediation company. The company was supposed to do oil remediation in Kuwait and said it was in a position to receive a $200 million EPA contract. A financial statement for June 2018 said the fund was worth $135 million, an amount the complaint said was mostly from fake gains.
The complaint said Hull and Nohl used the investors’ money to pay themselves nearly $20 million worth of fees and payments stemming from managing the fund, fake reported gains on the investments and interest on personal loans to the companies.
Hull and Nohl are faced with 12 charges for their actions, and the SEC is requesting the court require them to give up their gains, face appropriate civil penalties and enter an order of permanent injunction to stop Hull, Nohl and their companies from doing similar business in the future.
Bluepoint Investment Counsel, LLC’s certificate of authority has been revoked, and the phone number associated with the company is not in service. Chrysalis Financial has not returned the Wisconsin Law Journal’s call for comment.
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