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GEMS AND FRAUD! Fund Managers Scammed Millions on Illiquid Rocks!

  
November 19, 2025


  
  

    

      
      

    

  




  



        


U.S. Securities and Exchange Commission Litigation Release No. 26422, dated November 19, 2025.


Two investment managers, Michael Hull and Christopher Nohl, and their related entities defrauded investors in the Greenpoint Tactical Income Fund. They falsely claimed inflated returns, misrepresented the fund's illiquid assets like gems and minerals, and engaged in undisclosed self-dealing and high-interest loans to the fund. A jury found them liable for securities fraud, leading to court orders for over $27 million in disgorgement, interest, and penalties.




In Plain English
Imagine you give money to two friends who promise to invest it for you and make it grow, like planting seeds in a special garden. But instead of using your money wisely, they told you the garden was producing amazing fruit (big profits) when it wasn't. They also secretly took extra money for themselves and charged super high interest on loans they made to the garden, without telling you. A jury found out they were being dishonest and the court made them pay back over $27 million to make things right.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.


How the Alleged Scheme Worked
  1. Misleading Fund Structure Michael Hull and Christopher Nohl managed the Greenpoint Tactical Income Fund, raising about $52.783 million from 129 investors. They marketed it as an 'income' fund, but its holdings were mostly illiquid assets like gems, minerals, and private company stock, not income-generating investments.
  2. Inflated Asset Valuations The fund's value was significantly inflated by overvaluing its holdings. For example, an investment in Amiran Technologies, Inc. was claimed to be worth over $4.2 million in late 2015, but this was increased to over $46 million by mid-2018, despite Amiran becoming defunct and worthless.
  3. Fabricated Performance Claims The defendants falsely reported high investment returns to investors. They claimed returns of 65.68% in 2014, over 50% in 2015, and 25.48% in 2016. These figures were largely based on the improperly inflated valuations of assets like Amiran and the gem collection.
  4. Misleading Asset Composition As of June 30, 2018, 52% of the fund's value was attributed to its gem and mineral collection, and 46% to private company securities, primarily the worthless Amiran. This contradicted the 'income fund' label and the reality of illiquid, non-income-generating assets.
  5. Excessive Fees Based on False Values Using these inflated asset values, Hull, Nohl, and their entities charged the fund approximately $13.71 million in management and other fees between April 2014 and early 2019. Over $5.9 million was charged since 2017.
  6. Undisclosed Self-Dealing The managers engaged in undisclosed related-party transactions. They made short-term loans to the fund, sometimes charging interest rates exceeding 100% annually, and caused the fund to borrow money from its own investors without disclosure.
  7. Liquidity Issues and Fee Drain Despite charging substantial fees, many investors were told the fund lacked liquidity for redemptions. Proceeds from new investors were often used to pay management fees, repay debt, and fund some redemptions, rather than for genuine investment growth.
  8. Investment Adviser Misconduct Hull, also co-owner of Bluepoint Investment Counsel, recommended that all of Bluepoint's clients invest in the Greenpoint Tactical Income Fund and other affiliated funds without regard for their individual financial needs or circumstances.


The Enforcement Action
On October 6, 2025, a federal district court in Madison, Wisconsin entered final judgments against Michael G. Hull, Christopher J. Nohl, Greenpoint Asset Management II LLC, Chrysalis Financial LLC, and Bluepoint Investment Counsel LLC, following an August 2, 2022, jury verdict holding them liable for securities fraud. The court ordered these defendants jointly and severally liable for disgorgement of $12,560,647 and $3,537,378 in prejudgment interest. Hull and Nohl were each ordered to pay $5 million in civil penalties, and GAM II, Chrysalis, and Bluepoint were ordered to pay $500,000 each, totaling over $27.5 million. Permanent injunctive relief was also ordered against Hull, Nohl, GAM II, and Chrysalis.


Original SEC litigation release ↗ · Browse all cases