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 SECís 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 Receiverís websites on Novus and RCH2.