Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, & Chrysalis Financial LLC

Michael G. Hull & His Entity, Greenpoint Asset Management II LLC, & Christopher J. Nohl & His Entity, Chrysalis Financial LLC Purportedly Ran a $52. 783 Million Offering Fraud

Michael G. Hull and his entity, Greenpoint Asset Management II LLC, and Christopher J. Nohl and his entity, Chrysalis Financial LLC, from April 25, 2014 to June 2019, allegedly orchestrated a $52.783 million offering fraud involving approximately 129 investors in 10 states, according to an SEC Complaint under review by investor rights attorney Alan Rosca.

Investor rights attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating activity related to Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, and Chrysalis Financial’s LLC alleged operating fraud. Investors who believe they may have lost money in activity related to Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, and Chrysalis Financial’s LLC alleged operating fraud are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.

Fund, Hull, Nohl, and their entities, in the offering materials for Greenpoint Tactical Income, allegedly made false and misleading statements to the aforementioned investors, the Complaint states, and Hull, Nohl, and their entities have also allegedly represented to investors that Greenpoint Tactical Income Fund is a so-called income fund. 

In reality, however, the Fund’s holdings are almost entirely non-income-generating and illiquid assets, and, as of June 30, 2018—the last date for which the Fund has financial statements—52% of the Fund’s purported value is its gem and mineral collection and 46% of the Fund’s purported value is a portfolio of debt and equity securities of private companies, primarily consisting of a now defunct and worthless environmental remediation company, the Complaint reports. 

Bluepoint, via Hull, allegedly recommended that all of Bluepoint’s individual clients invest in the Greenpoint Tactical Income Fund and other affiliated Greenpoint Funds, and Hull also allegedly made said recommendations without regard for each individual investor’s needs and circumstances, the Complaint details.

What is more, Hull, Nohl, and their entities are allegedly investment advisers to Greenpoint Tactical Income Fund and owe fiduciary duties to the Fund including a duty of loyalty, the Complaint states. 

Michael G. Hull operates Greenpoint Asset Management II LLC, and is also the co-owner of Bluepoint Investment Counsel, LLC, a now de-registered investment adviser that claimed to have as much as $145 million in assets under management, the Complaint reports, and Christopher J. Nohl operates Chrysalis Financial LLC.

Greenpoint Tactical Income Fund LLC & Their Entities Allegedly Made False & Misleading Statements to Investors 

Hull, Nohl, and their entities allegedly made false and misleading statements to investors regarding Greenpoint Tactical Income Fund LLC, the Complaint notes. 

Hull, Nohl, and their entities, for example, allegedly stated that, as of June 30, 2018, the Fund had a net asset value of $135 million based almost entirely on unrealized gains, and indeed, 95% of the purported gains are allegedly unrealized, the Complaint states. 

Said gains are allegedly largely fictitious, and Hull, Nohl, and their entities have allegedly made misleading statements to investors as to how they have been operating the Fund and valuing its assets, the Complaint reports.

Hull, Nohl, & Their Entities Allegedly claim that the Greenpoint Fund Had a Return on Investment of 65.68% for 2014, & a Return on Investment of Just in Excess of 50% for 2015

Hull, Nohl, and their entities, for 2014, allegedly claim that Greenpoint Tactical Income Fund had a return on investment of 65.68%, and for 2015 they allegedly claim that the Fund had a return on investment of just in excess of 50%, the Complaint reports. 

For 2016, Hull, Nohl, and their entities allegedly claim that the Fund had a return on investment of 25.48%, and for the first two quarters of 2018, they allegedly claim that the Fund had a return on investment of 16.11%, the Complaint states.  

As of June 30, 2018—the last date for which the Fund has financial statements—52% of the Fund’s purported value is its gem and mineral collection and 46% of the Fund’s purported value is a portfolio of debt and equity securities of private companies, primarily consisting of a now defunct and worthless environmental remediation company, known in the Complaint only as Private Company 1, the Complaint reports. 

The purported returns allegedly come from Hull and Nohl purportedly improperly inflating the value of Private Company 1 and from the valuations of the gems and minerals that, amongst other things, and allegedly failed to comply with the minimal valuation procedures contained in the Fund’s operating agreements, the Complaint notes. 

Hull, Nohl, and their entities initially valued the Fund’s interest in Private Company 1 at over $4.2 million as of December 31, 2015 and increased the value of the Fund’s interest to over $46 million as of June 30, 2018, the Complaint details. 

Hull, Nohl, and their entities allegedly more than doubled the value from the fourth quarter of 2017 to the first quarter of 2018 while knowing that the primary subsidiary of Private Company 1 was in default on a line of credit secured by all of the subsidiary’s assets and guaranteed by Private Company 1, the Complaint states. 

Private Company 1 is now defunct and worthless, the Complaint reports. 

Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

Securities Lawyer Investigating

The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, and Chrysalis Financial’s LLC alleged operating fraud. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

Investors who believe they lost money as a result of Michael G. Hull, Greenpoint Asset Management II LLC, Christopher J. Nohl, and Chrysalis Financial’s LLC alleged operating fraud may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.