U.S. Securities & Exchange Commission
SEC Seal
Home | Previous Page
U.S. Securities and Exchange Commission


Litigation Release No. 23683 / November 7, 2016

Securities and Exchange Commission v. Christopher K. Schrichte, Howard C. Hill, NewMarket Global Management I, LLC, and NewMarket Technology Fund I, LLC, Civil Action No. 16-cv-5773 (E.D. Pa)

SEC Charges Unregistered Investment Adviser with Misappropriating Approximately $1.4 Million and Defrauding Investors

The Securities and Exchange Commission today charged Christopher K. Schrichte ("Schrichte") and Howard C. Hill ("Hill"), the two managing members of NewMarket Technology Fund I, LLC (the "Fund"), and NewMarket Global Management I, LLC (the "Manager"), with looting the Fund and the Fund's sole investment, a software company ("Software Company"), in order to line their own pockets at the expense of the Fund and its investors.

The SEC's complaint, filed in federal court in Philadelphia, Pennsylvania, alleges that, from 2007 to 2014, Schrichte and Hill improperly took almost a million dollars in interest-free loans from the Fund and nearly $500,000 in unauthorized and undisclosed transfers from the Fund and the Software Company. Schrichte used the funds to pay his mortgage, personal property taxes, and other living expenses, and Hill used the funds to pay for personal living expenses, purchase luxury goods, and pay personal debt. In addition, when Schrichte and Hill sought additional investment money to keep the Fund and the Software Company afloat, they materially misrepresented the nature and extent of the payments Schrichte and Hill took from the Fund and the Software Company.

The SEC's complaint alleges Schrichte, Hill, and the Fund violated of Sections 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint also alleges that the Manager, Schrichte, and Hill violated Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The SEC seeks permanent injunctions, disgorgement plus prejudgment interest, and civil penalties.

The SEC's investigation was conducted by Paulina L. Jerez, Dustin Ruta, and Kingdon Kase in the SEC's Philadelphia Regional Office and supervised by G. Jeffrey Boujoukos. The litigation will be led by Christopher R. Kelly and supervised by David L. Axelrod.

SEC Complaint



Modified: 11/07/2016