Novus Technologies, LLC, et al.

On April 11, 2007, the SEC obtained temporary restraining orders and asset freezes against Novus Technologies, LLC, Ralph W. Thompson, Jr., Duane C. Johnson, RCH2, LLC and Robert Casey Hall in connection with an alleged Ponzi scheme.  According to the complaint, the defendants obtained investments of at least $4.8 million from at least 50 investors by fraudulently representing that 80% of investor funds would be placed in low-risk investments and 20% in high-risk investments, and their investments were 100% safe because they were pooled in a large interest-bearing account.  According to the complaint, almost all investor money was placed in high-risk currency futures or S&P 500 futures, resulting in trading losses of at least $9 million.  The SEC also alleged that the defendants used some investor funds for personal use and to pay promised returns to earlier investors.  For more information about the SEC’s action, you can read Litigation Release No. 20075 (Apr. 11, 2007).

On May 16, 2007 the Court appointed Lon A. Jenkins as Receiver separately for Novus Technologies and RCH2.  For the latest information about these Receiverships, you can visit the Receiver’s websites on Novus and RCH2.