SEC v. CHRISTOPHER A. NOVINGER; BRADY J. SPEERS; NFS GROUP, LLC d/b/a NOVERS FINANCIAL a/k/a SAFE RETIREMENT EXPERTS; ICAN INVESTMENT GROUP, LLC; and SPEERS FINANCIAL GROUP, LLC, No. 4:15-cv-00358, Northern District of Texas (May 11, 2015) — Complaint

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF TEXAS

FORT WORTH DIVISION
SECURITIES AND EXCHANGE COMMISSION, §

§

Plaintiff, §

§

v. § Case No.:
§
CHRISTOPHER A. NOVINGER, §
BRADY J. SPEERS, §
NFS GROUP, LLC d/b/a NOVERS FINANCIAL a/k/a §
SAFE RETIREMENT EXPERTS, §
ICAN INVESTMENT GROUP, LLC, and §
SPEERS FINANCIAL GROUP, LLC, §
§
Defendants. §
§
COMPLAINT
Plaintiff  Securities  and  Exchange  Commission  (the  “Commission”)  files this  Complaint
against  Defendants  Christopher  A.  Novinger,  Brady  J. Speers,  NFS  Group,  LLC  d/b/a  Novers
Financial a/k/a  Safe  Retirement  Experts,  ICAN  Investment  Group, LLC,  and  Speers  Financial
Group, LLC (collectively “Defendants”), and alleges as follows:
SUMMARY
1. From February 2012 through January 2014, Defendants Christopher A. Novinger,
Brady J. Speers,  and  their  company,  NFS  Group,  LLC  d/b/a  Novers  Financial  a/k/a  Safe
Retirement Experts (“Novers”), fraudulently offered and sold life settlement interests
1
by falsely
assuring investors that the investment was:
A life settlement is a transaction in which an owner of a life insurance policy (frequently the insured) sells
his/her life insurance policy to a third party for more than the policy’s cash surrender value but less than the policy’s
face value (or net death benefit).  After a life insurance policy has been sold in a life settlement transaction, the
buyer can divide the future benefits payable under the policy into fractions and sell these fractional interests to
others.  These fractional interests in the future benefits payable under a life insurance policy, upon the death of the
underlying insured, are referred to as life settlement interests.
1

a.	 “safe, guaranteed investment[s] with annualized return average of 7-11%;”
b.	 “risk free” and one in which “you cannot lose a dollar;”
c.	 “safe as CDs [yielding] annual returns of 10-14%;”
d.	 “by far the most secure, safe method for growing funds;”
e.	 “federally insured;” and
f.	 comprised  of  “policies  insured  with  large,  A-rated  companies  and  backed  by
Federal Reserves.”
2. Novinger  and Speers, who  host  a  weekly  radio  show  dubbed the  “Retirement
Experts  Radio  Show”  that  airs  on  Dallas/Fort  Worth  AM  radio  stations,  also  made  false  and
misleading  representations  to  prospective  investors  about  their  purported  business  experience
and financial  expertise,  marketing  themselves  to  prospective  investors  as  (i)  licensed  financial
consultants, (ii) “The Low Risk, Safe Money Guys,” (iii) retirement experts, and (iv) “the largest
non-risk investment consulting firm in the Southwest.”
3. However,  Novinger and  Speers possess  little  to  no  training  relating  to  securities
and  non-insurance  related  financial  products,  including  life  settlements.  Even  worse,  Novinger
and Speers  have  repeatedly  been  sanctioned  by  regulatory  authorities,  including  the  Oklahoma
Department  of  Securities,
2
the  Texas  Attorney  General,  the  State  of  California’s  Department  of
Managed  Health  Care,  and  the  Federal  Communications  Commission  (“FCC”).
3
In fact,  the
Oklahoma Department of Securities sanctioned Novinger, Speers, and Novers in connection with
their  efforts  to  sell  life  settlements  to  Oklahoma  residents.    Despite  touting  their  supposed
2
The Oklahoma Department of Securities issued a cease-and-desist order against Novinger, Speers, and
Novers in September 2013 for their fraudulent offer of unregistered life settlements in Oklahoma.
3
The Texas Attorney General, the FCC, and the State of California each took regulatory action against a
prior company owned, managed, and directed by Novinger and Speers for the company’s participation in a
fraudulent scheme to mass-market discount health plans.
SEC v. Christopher A. Novinger, et al.
COMPLAINT	 Page 2

qualifications, Novinger, Speers, and Novers failed to disclose these actions taken against them
by multiple regulatory agencies.
4. Novinger  and Speers also  created  phony,  meaningless  titles  for  themselves  to
create  an  air  of  legitimacy  and  expertise  to  deceive  investors  into  believing  they  were  more
experienced, sophisticated, and legitimate than they really were.  Novinger and Speers each used
the terms   “licensed   financial   consultant,”   “licensed   consultant,”   and   “licensed   financial
strategist” to  identify  themselves,  even  though  they  knew  that  these  titles  were  not  actual,
recognized  designations  or certifications  in  the  financial  services  industry.    They  also  marketed
and  promoted  Novers  as  “the  largest  non-risk  investment  consulting  firm  in  the  Southwest,”
however that claim was based on geographic territory – not on the number of clients Novers had
or on the amount of assets it managed for clients.  The sole basis for this claim is that Novinger
and Speers drove up to eight hours to visit and solicit investors.
5. Presumably  because  the  life  settlement  interests  were  not  registered  as  securities
with  the  Commission,  the  two  life  settlement  providers  with  whom  Novinger  and  Speers  had
selling  agreements  required investors to  be  accredited.
4
To  help  investors  bolster  the putative
value of their net worth, Novinger, Speers, and Novers furnished some of their investors with a
“Net  Worth  Calculator,”  which improperly  inflated  investors’  assets  by  including  anticipated
Social  Security,  pension,  and  other  similar  payments  for 240  months  (20  years)  into  the  future.
This practice had the effect of giving the false and misleading appearance that the investor had a
large enough net worth to be considered accredited and therefore was an appropriate investor for
Under the Securities Act of 1933, a company that offers and sells its securities must register the securities
with the Commission or find an exemption from the registration requirements.  For example, Rules 505 and 506 of
Regulation D of the Securities Act provide that a company may sell its securities to what are known as “accredited
investors.”  The term “accredited investor” is defined in Rule 501 of Regulation D and includes, among other things,
an individual (i) whose net worth, or joint net worth with his/her spouse, exceeds $1 million (excluding the value of
the individual’s primary residence),  or (ii) whose income exceeded $200,000 in each of the two most recent years, or
whose joint income with that person’s spouse exceeded $300,000 in each of those years, and who has a reasonable
expectation of reaching the same income level in the current year.
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 3
4

this unregistered  offering.    Investors’  assets,  however,  were  much lower  and,  on  multiple
occasions,  investors  were  not accredited  and  should  not  have  been  permitted  to  invest  in  these
speculative life  settlement  investments. For  example,  one  couple’s  non-homestead  assets
ballooned from $263,000 to nearly $1.5 million – after including 20 years of anticipated, future
Social Security payments, pension payments, and VA benefits.  Hence, though the couple did not
qualify as accredited investors based on their actual net worth, use of the Net Worth Calculator
created  the  false appearance  of  accreditation.    As  a  result,  this  retired  couple  allocated 1/5  of
their actual net  worth  to  invest  in  life  settlement  interests  through  Novers.    And  even  if  a
potential  investor  was  accredited  without  including these  anticipated  future  payments,  the  Net
Worth  Calculator  misleadingly  gave  investors  a  false  and  misleading  impression  of  their  net
worth.
6. Based  on  these  and  other  misrepresentations,  Novinger,  Speers,  and  Novers  sold
more  than  $4.3  million  of life  settlement  interests  to  26  investors,  at  least  three  of  whom  were
not accredited.    As  a  result  of  these  sales,  Novinger  and  Speers  obtained  commissions  totaling
nearly  $515,000,  which  they  received  directly  or  through  entities  they  each  set  up  to  receive
compensation  from  their  sales  efforts  –  ICAN  Investment  Group,  LLC  (“ICAN”)  and  Speers
Financial Group, LLC (“Speers Financial”), respectively.
7. By  fraudulently  offering  and  selling  unregistered  life  settlement  interests,  which
are  securities,  Defendants Novinger,  Speers,  and  Novers  violated  the  antifraud  and  securities
registration provisions of the federal securities laws, namely Sections 5(a), 5(c), and 17(a) of the
Securities Act of 1933 (“Securities Act”) [15 U.S.C. §§ 77e(a), 77e(c), and 77q(a)] and Section
10(b)  of  the  Securities  Exchange  Act  of  1934  (“Exchange  Act”)  [15  U.S.C.  §  78j(b)]  and  Rule
10b-5 thereunder [17 C.F.R. § 240.10b-5].
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 4

8. By  offering  and  selling  life  settlement  interests,  which  are  securities,  without
being registered as a broker and/or dealer or associated with a registered broker-dealer, pursuant
to Section 15(b) of the Exchange Act [15 U.S.C. § 78o(b)], Novinger, Speers, ICAN, and Speers
Financial violated the broker-dealer registration provisions of the federal securities laws, namely
Section 15(a) of the Exchange Act [15 U.S.C. § 78o(a)].
9. In  the  interest  of  protecting  the  public  from  any  further  fraudulent  activity  and
harm,   the   Commission   brings   this   action   against   the   Defendants   seeking:   (i)   permanent
injunctive  relief;  (ii) disgorgement  of  Defendants’ ill-gotten  gains;  (iii)  accrued  prejudgment
interest on those ill-gotten gains; and (iv) civil monetary penalties.
JURISDICTION AND VENUE
10. Defendants Novinger,  Speers,  and  Novers  offered  and  sold  securities – life
settlement interests – to  investors.  The life settlement interests are investment contracts, which
are  securities  as  defined  by  Section  2(a)(1)  of  the  Securities  Act  [15  U.S.C.  §77b]  and  Section
3(a)(10)  of  the  Exchange  Act  [15  U.S.C.  §78c]. As  such,  the  Court  has  jurisdiction  over  this
action  pursuant  to  Section  20(b)  of  the  Securities  Act  [15  U.S.C.  § 77t(b)]  and  Sections  21(d),
21(e), and 27 of the Exchange Act [15 U.S.C. §§ 78u(d), 78u(e), and 78(aa)].
11. Venue  is  proper  because  a  substantial  part  of  the  events  or  omissions  giving  rise
to the claims occurred within the Northern District of Texas, Fort Worth Division.  Novinger and
Speers  are  residents  of  Mansfield,  Texas.  Novers  maintains  its  principal  place  of  business  in
Mansfield, Texas.  Novinger and Speers are the registered director and manager, respectively, of
ICAN  and  Speers  Financial.    All  of  these  locations  are  within  the  Fort  Worth  Division  of  the
Northern District of Texas.
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 5

DEFENDANTS

12. Christopher  A.  Novinger,  age  38,  resides  in  Mansfield,  Texas.  Novinger
maintains  a  license  with  the  Texas  Department  of  Insurance,  but  he has  never  been  associated
with  a  registered  broker-dealer  or  investment  adviser.    Novinger  is  a  principal  and  managing
member  of  Defendant  Novers  and  the  director  of  Defendant  ICAN.   Another company  owned,
managed,  and  directed  by  Novinger  (and  Speers)  –  Equal  Access  Health,  Inc.  (“EAH”) –  was
sanctioned by  the  Texas  Attorney  General,  the  FCC,  and  the  State  of  California  for  its
participation in a fraudulent scheme to mass-market allegedly discounted health plans.
13. Brady J. Speers, age 45, resides in Mansfield, Texas.  Speers maintains a license
with  the  Texas  Department  of  Insurance,  but  he has  never  been  associated  with  a  registered
broker-dealer  or  investment  adviser.    Speers  is  a  principal  and  managing  member  of  Defendant
Novers and  the  manager  of  Defendant  Speers  Financial.   Speers  was  also  an  owner,  manager,
and director of EAH.
14. NFS  Group,  LLC  d/b/a  Novers  Financial  a/k/a  Safe  Retirement  Experts
(“Novers”), a Texas limited liability company formed in November 2012, maintains its principal
place of business in Mansfield, Texas.  Prior to filing a certificate of formation for NFS Group,
LLC with  the  Texas  Secretary  of  State  in  November  2012,  Novinger  and  Speers  jointly
conducted  business  under  the  name  Novers  Financial,  which  was  not  a  registered legal  entity.
After forming NFS Group, LLC, Novinger and Speers continued to conduct business as Novers
Financial, which became a “d/b/a” for NFS Group, LLC.  In approximately April 2014, Novinger
and  Speers  began  operating NFS  Group,  LLC  under  the  assumed  name  of  Safe  Retirement
Experts.  Neither Novers nor its securities is registered with the Commission, and Novers has not
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 6

registered any offering of securities with the Commission.  Defendants Novinger and Speers are
Novers’ principals and managing members.
15. ICAN  Investment  Group,  LLC  (“ICAN”),  a  Texas  limited  liability  company
formed  in  October  2013,  maintains  its  principal  place  of  business  in  Mansfield,  Texas.
Defendant Novinger, ICAN’s director, formed ICAN to receive commissions on his sales of life
settlement interests  to  investors.    Neither  ICAN  nor  its  securities  is registered  with  the
Commission, and ICAN has not registered any offering of securities with the Commission.
16. Speers Financial Group, LLC (“Speers Financial”), a Nevada limited liability
company formed in October 2013, maintains its principal place of business in Mansfield, Texas.
Defendant Speers formed Speers Financial to receive commissions on his sales of life settlement
interests  to  investors.  Neither  Speers  Financial  nor  its  securities  is registered  with  the
Commission,  and  Speers  Financial  has  not  registered  any offering  of  securities  with  the
Commission. Speers serves as the manager of Speers Financial.
RELATED ENTITIES
17. Conestoga  International,  LLC  (“Conestoga”),  a  Puerto  Rico  limited  liability
company  with  a  principal  place  of  business  in  San  Juan,  Puerto  Rico,  is  an  issuer/seller of
fractional interests in the future benefits payable under life insurance policies when the insureds
underlying  the  policies  die  (a/k/a  life  settlement  interests).    Neither  Conestoga nor  the  life
settlement interests  it  offers  and  sells  is registered  with  the  Commission.  Similarly,  Conestoga
has not registered an offering of securities with the Commission, but it has filed a Form D (and
amendments thereto), claiming an exemption from registration under Rule 506 of Regulation D
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 7

of the Securities Act for  its  offering of life settlement interests.
5
Defendants Novinger, Speers,
and Novers offered and sold Conestoga’s life settlement interests from February 2012 to January
2014.
18. EDU Financial Strategies, LLC (“EDU”), an Indiana limited liability company
with  a  principal  place  of  business  in  Indianapolis,  is  an  issuer/seller  of  life  settlement  interests.
Neither EDU nor  the  life  settlement  interests  it  offers  and  sells  are  registered  with  the
Commission.  Likewise, EDU has not registered an offering of securities with the Commission,
nor  did  it  file  a  Form  D  with  the  Commission  until  July  2014  – after  EDU  terminated  its  sales
agent  agreements  with  Defendants  Novinger  and  Speers.    EDU’s earlier  private  placement
memoranda (“PPM”), seeking to raise $25 million, claimed an exemption from registration under
Rule  506.    Novinger,  Speers,  and  Novers  offered  and  sold  EDU’s  life  settlement  interests  from
February 2013 to August 2013.
STATEMENT OF FACTS
19. Defendants Novinger and Speers began working together in the late 1990s, selling
all  manner  of  goods,  services,  and  investment  interests,  including  ties,  grandfather  clocks,
allegedly discounted health plans, annuities, and life settlement interests as third-party marketers.
Novinger and Speers are introduced to life settlements and begin selling for Conestoga.
20. In early 2012, Novinger and Speers were first introduced to an investment known
as life settlements – fractionalized interests in the benefits payable under life insurance policies
upon the death of the underlying insured
6
– by a senior field adviser for Conestoga.
5
As of November 2013, the face value of Conestoga’s offering of life settlement interests was more than
$100 million.  As of March 23, 2015, the face value of the offering was more than $161 million, of which more than
$140 million had already been sold and more than $21 million remained to be sold.
6
An owner of a fractional interest in a life insurance policy has the right to collect the benefits (equal to the
percent – or fraction – he/she owns in a particular life insurance policy) that are payable to the owner of the life
insurance policy when the insured underlying the policy dies.
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 8

21. In February 2012, Novinger and Speers each entered into independent contractor
agreements with Conestoga to offer and sell its life settlement investments to investors in return
for a 10% commission on those sales.  Thereafter, Novinger and Speers, jointly doing business as
Novers Financial, began offering Conestoga’s life settlement interests to investors.
22. In  August  2012,  a Conestoga  senior  field  adviser  told  Novinger  and  Speers  the
“crazy  good  news”  that  the  JOBS  Act
7
allowed  solicitation  to  the  general  public,  that  sales
agents  could  have  approved  advertisements,  and  that  Conestoga would  reimburse  sales  agents
dollar-for-dollar  for  any  approved  advertising.    However,  Conestoga’s senior  field  adviser  later
informed Novinger and Speers that they would not be allowed to advertise until after rules were
adopted under the JOBS Act.
23. In November 2012, Novinger and Speers filed a Certificate of Formation with the
Texas Secretary of State to legally form NFS Group, LLC, and continued to conduct business as
Novers Financial.
Novinger and Speers begin selling EDU life settlement interests.
24. In   February   2013,   Novinger   and   Speers   each   executed agent   appointment
agreements  with  EDU –  another  company  offering  and  selling  life  settlement  interests  –  and
began offering and selling EDU’s life settlement interests to investors.  EDU paid Novinger and
Speers a 13% commission on their sales of EDU’s life settlement interests to investors.
Life settlement interests offered and sold by Conestoga and EDU are securities.
25. The life settlement investments of Conestoga and EDU, which were offered and
sold to investors by Defendants Novinger, Speers, and Novers, are investment contracts within
Signed into law on April 5, 2012, the Jumpstart Our Business Startups (“JOBS”) Act directed the
Commission to revise Rule 506 of Regulation D of the Securities Act within 90 days to permit general solicitation of
investors, provided that all purchasers are accredited investors and the issuer has taken reasonable steps to verify
their accredited status.
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 9
7

the meaning of the federal securities laws. When purchasing a life settlement interest, investors
contract to invest money in a common enterprise with the expectation that they will derive
profits solely from the entrepreneurial and managerial efforts of others.  In other words, investor
funds are pooled in a common enterprise (the total number of fractional interests that comprise
100% interest in the benefits payable under a single life insurance policy) and the investment is
wholly passive.  Investors hope to profit solely through – and their fortunes in this investment
opportunity are inextricably linked to – the efforts and purported expertise of others.  Investors
are not expected to, and in fact have no means to, actively participate in the enterprise to obtain
investment returns, rather any profits or losses they obtain are dependent upon the success or
failure of others.
26. In connection with each life insurance policy they fractionalize for sale as life
settlement interests, Conestoga and EDU (the “Issuers”) – and third parties with whom they may
contract to perform services on their behalf – undertake and perform a variety of entrepreneurial
and managerial efforts that are critical to the success or failure of the investment, i.e., whether
investors derive profits or incur losses from their investments in life settlement interests.  These
efforts include:
a.	 identifying and evaluating life insurance policies presented to them for
purchase;
b.	 providing exclusive policy providers with parameters for life insurance
policies that they are interested in purchasing, including, among other things,
the age of the insureds, the length of the life expectancy estimates (“LEs”),
preferred or disfavored LE providers, types of policy (for example, no
stranger-originated life insurance (“STOLI”) policies), and preferred
insurance companies;
c.	 reviewing and analyzing the LEs of the insured on whose life the policy is
issued;
8
The LEs are typically provided to the Issuers when the policy is presented to them for purchase.
SEC v. Christopher A. Novinger, et al.
COMPLAINT	 Page 10
8

d.	 negotiating the purchase price of the life insurance policy;
e.	 purchasing the life insurance policy;
f.	 dividing the benefits payable under the life insurance policy upon the death of
the insured into fractional interests;
g. calculating and establishing the price to charge investors for each fractional
interest in the policy;
h. soliciting and contracting with independent contractors to market, offer, and
sell the fractional interests in the policy to investors in exchange for
commissions ranging from 10% to 13%;
i. creating disclosure and offering materials to use in offering and selling life
settlement interests to retail investors;
j.	 offering and selling fractional interests in the policy to investors through a
network of sales agents;
k.	 paying the necessary premium amounts for unsold portions of the policy until
all fractional interests in the policy are sold to keep the policy in effect – and
avoid lapsing – while the Issuers and their sales agents solicit investors to
purchase the remaining, outstanding fractional interests in the policy;
9
l.	 engaging an independent third party to act as an escrow agent for investors in
their life settlement interests;
m. creating accounts with the escrow agent to ensure premiums on the policy are
paid on time when they come due so that the policy does not lapse;
n.	 directing the escrow agent how to allocate investor funds received from retail
investors to purchase life settlement interests;
o.	 directing the escrow agent how to disburse fees and commissions, and how
and when to make periodic premium payments to the insurance company;
p.	 organizing, coordinating, and overseeing the escrow agent to ensure that
investor funds are being allocated accurately, appropriately, and timely, and
It may take the Issuers a matter of months or a few years to sell all fractional interests in a policy.  In fact, it
took Conestoga three years to sell all fractional interests in one of the policies it offered.  In another instance, a
policy matured before Conestoga sold all fractional interests, and Conestoga became the interest owner of the unsold
portion of the policy. Additionally, the entity from whom EDU purchases life insurance policies may continue to
pay premiums on the unsold, outstanding portions of the policies until all fractional interests have been sold, but
EDU must monitor to ensure these premium payments are being made and that current fractional investors are not at
risk of losing their interests due to unpaid premiums.
SEC v. Christopher A. Novinger, et al.
COMPLAINT	 Page 11
9

that premium payments are being made as they come due (including directing
the escrow agent to the proper accounts in which the funds to be used for
premium payments are located);
q.	 tracking when premium payments are due on each and every policy in which
they have sold fractional interests, or contracting with a third party to perform
this function;
r. tracking the fractional interest percentages of each interest owner to know
how much each interest owner owes when the premium comes due;
s. maintaining contact with each fractional interest owner to keep updated
records as each investor moves, dies, transfers his/her interest to other
individuals, or abandons his/her interest – so the Issuers ensure that the
entirety of a policy’s premiums are being timely paid and the policy is not at
risk of lapsing;
t. re-selling fractional interests
10
when investors abandon their interests or
choose to no longer pay their portion of premiums (beyond those already
escrowed) when they come due;
11
u. tracking the insured to determine when he/she dies and the policy matures, or
contracting with a third party to do so;
v. reallocating premium funds that are left over if an insured dies before all of
the escrowed premiums have been depleted;
w. obtaining the necessary documentation for the insurance company once the
insured has died, including a death certificate;
x. making a timely demand upon the insurance company for payment of death
benefits under the policy after the insured dies;
y. taking measures to enforce the rights of fractional interest owners if an
insurance company (or competing claimants) challenge the validity of a policy
or the distribution of insurance benefits under the policy when an insured
dies;
12
10
EDU represents that it will facilitate a secondary market for life settlement interests it has sold to fractional
interest owners.
11
Should an investor of an EDU life settlement interest decide he or she no longer wishes to own the
investment or decides it no longer wants to pay the necessary premiums to keep the underlying policy in force, EDU
represents that it may repay an investor’s original principal investment amount if EDU is able to identify and locate
an investor to purchase that interest.
12
In fact, Conestoga has taken numerous steps to pursue its claims and those of investors in its life
settlements, including protracted litigation with the insurance company to pay the claim.
SEC v. Christopher A. Novinger, et al.
COMPLAINT	 Page 12

z.	 coordinating and organizing to ensure proceeds from a matured insurance
policy are accurately disbursed to the interest owners based on each investor’s
fractional interest; and
aa. conducting other post-sale efforts to ensure that premiums are paid, the policy
does not lapse, investors collect their portion of the insurance proceeds when
the insured dies, and left-over premiums, if any, are returned to investors or
credited to other policies in which they own interests.
27. These efforts that  the  Issuers  perform  –  before  investors  purchase  life  settlement
interests from them and afterwards – are vital to the sale of all fractional interests in each policy
and are critical to the success or failure of the investments.  From the start, an investor must rely
on  the  Issuers  to  sell  100%  of  the  fractionalized  life  settlement  interests  in  the  life  insurance
policy  in  which  he  or  she  has  invested  just  to  ensure  that  the  policy  can  be  maintained  going
forward, i.e., premiums and other obligations can be satisfied so that a policy will not lapse and
death  benefits  will  be  available  and  payable  upon  the  insured’s  death  (whenever  that  may  be).
Indeed,  if  the  Issuers  do  not  successfully  perform  any of  these  efforts,  investors  are  directly  at
risk  of  losing  their  entire investment  principal  – before  even  contemplating  or  worrying  about
prospective returns on that investment.
Novinger, Speers, and Novers begin a general solicitation campaign.
28. In  May  2013,  while  selling  EDU’s life  settlements,  Novers  began a  general
solicitation  campaign  by mass-mailing letters  prepared  and  approved  by  Novinger  and  Speers
that  falsely  described  the  life  settlement  interests they  offered  as  guaranteed,  safe  as  a  CD,  and
federally-insured with an annual return of 7% to 9%.
29. In  August  2013,  EDU began  requiring  its  sales  agents  to  be  licensed  securities
professionals, so it terminated its agreements with Novinger and Speers.
SEC v. Christopher A. Novinger, et al.
COMPLAINT	 Page 13

30. Novinger  and  Speers  then  resumed  selling Conestoga’s  life  settlement  interests,
and continued their general solicitations of prospective investors.
31. Between  May  31,  2013  and  January  5,  2014,  Novers  sent  five  virtually  identical
letters  to  nearly  23,000  residents  of  Dallas,  Fort  Worth,  and  the  surrounding areas.    Based  on
these mass mailings, Novinger, Speers, and Novers sold Conestoga’s life settlement interests to
investors.
32. In   early   January   2014,   Conestoga terminated   its   independent   contractor
agreements   with   Novinger   and   Speers,   because   they were    sending   solicitation   letters   to
prospective investors that had not been approved by Conestoga.
Novinger, Speers, and Novers misled investors into artificially inflating their
net worth and sold life settlement interests to non-accredited investors.
33. During the relevant period that Novinger, Speers, and Novers offered and sold life
settlement  interests,  Conestoga  and EDU purportedly  required  investors  to  be  – and  allowed
them to self-verify that they were – accredited.
34. However, Novinger,   Speers,   and   Novers   sold   life   settlement   interests   of
Conestoga and EDU to several non-accredited investors.
35. Novinger, Speers, and Novers provided at least several of their clients with a Net
Worth  Calculator  to  compute their  net  worth  and determine whether  they  were  accredited
investors.    However, the  Net  Worth  Calculator  provided  by  Novinger,  Speers,  and  Novers
improperly inflated  investors’  assets  by  including  estimated  Social Security  benefits,  pension
payments, and other similar payments – for 240 months (20 years) into the future.
36. As  a  result,  Novinger,  Speers,  and  Novinger  sold  life  settlement  interests  to  at
least  three  investors  who  were  not accredited.    Two  of  these  investors  purchased  their  life
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 14

settlement  interests  after September  23,  2013
13
and  became  accredited  solely as  a  result  of  the
bogus inflation of their assets using anticipated future income for the following 240 months. As
a result, the Rule 506(c) exemption is not available to Novinger, Speers, and Novers.  The third
investor, who was not accredited even after using the Net Worth Calculator, purchased $50,000
of EDU’s life settlement interests from Novinger in April 2013.
37. For example, one couple used the Net Worth Calculator provided by Novers and
saw  its  non-homestead  assets  balloon  from  $263,000  to  nearly  $1.5  million,  which  included  20
years  of  Social  Security  benefits,  pension  payments,  and  VA-related  benefits  that  the  couple
anticipated receiving for the next 20 years.  Hence, though the couple’s actual net worth did not
qualify  the  couple  as  accredited,  the  Net  Worth  Calculator  misled  the  investors  by  falsely
creating  the  appearance  of  accreditation  and  by  enabling  the  couple  to  self-verify  that  it  was
accredited.  As a result, this retired couple invested nearly 1/5 of their actual net worth ($50,000)
in Conestoga’s life settlement interests, through Speers, in December 2013.
Novinger, Speers, and Novers misrepresented life settlement investments to investors.
38. Conestoga’s senior field adviser provided Novinger and Speers with Conestoga’s
offering  materials,  sales  and  marketing  materials,  and  training  materials.    In  turn,  Novinger,
Speers, and Novers used these materials to create their own brochures to market, promote, offer,
and sell Conestoga’s life settlement interests to investors.
39. Novinger,  Speers,  and  Novers  sent  marketing  materials,  and  made  statements,  to
investors  that  that  they  knew,  or  were  extremely  reckless  in  not  knowing,  were  false,  because
they  directly  contradicted  what  they  had  read  in  the risk  disclosures of  Conestoga’s  offering
documents.    For  example,  despite  reading  in  Conestoga’s  Private  Placement  Memorandum
Rule 506(c) of Regulation D of the Securities Act became effective on September 23, 2013, allowing
general solicitations and advertising of offerings if, and only if, all sales are made to accredited investors.
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 15
13

(“PPM”) that Conestoga’s  life  settlement  interests  were  illiquid  and  not  guaranteed,  Novinger,
Speers, and Novers described them as “insured/bonded” and as “safe as CDs.”
40. Speers and  Novers  also  knowingly  disregarded  material,  negative  information
about Conestoga and its principals that: (i) undermined the safety and security of life settlement
investments  issued  by  Conestoga,  (ii)  cast  serious  doubt  on  the  credibility  of  Conestoga and  its
principals,   and   (iii)   conflicted   with   representations   in   Novers’   marketing   materials   and
communications that life settlements were “safe as CDs” and insured.
41. Within  a  day  of  signing  his  sales  agent  agreement  with  Conestoga in  February
2012,  Speers  asked  Conestoga’s senior  field  adviser  –  an independent  contractor  of  Conestoga
just like  Speers  and  Novinger  –  about a  November  2010  internet  posting  that  described  a  court
order obtained by the Texas State Securities Board (“TSSB”) compelling Conestoga to produce
certain   books   and   records.      The   internet   posting   revealed   that   the   State   of   Texas   was
investigating Conestoga and  that  Conestoga’s sole manager  had  been  involved  with  a  “similar
life settlements investment company that has been shut down . . . for alleged securities fraud.”
42. Conestoga’s  senior  field  adviser  deflected  Speers’  inquiry  by  claiming that  life
settlement interests  are  not  securities,  and Speers  made  no  further  inquiry,  ignoring  statements
that Conestoga’s manager had been involved with a company accused of securities fraud.
Novinger, Speers, and Novers misrepresented
life settlement interests as safe and guaranteed.
43. The  offering  materials  of  Conestoga  and  EDU  both  describe  various  risks
associated with investments in life settlements.  For example, the offering materials disclose that:
a. there is “no annual rate of return;”
b. there are no guarantees of any potential rate of return;
c. the investment is not liquid;
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 16

d.
	 there is uncertainty regarding an insured’s life expectancy;
e.	 policies could lapse if premiums go unpaid; and
f.	 “THIS IS A HIGHLY SPECULATIVE INVESTMENT.  IT IS DESIGNED FOR
SOPHISTICATED    INVESTORS    WHO    ARE    ABLE    TO    BEAR    THE
ECONOMIC  RISK  OF  THE  LOSS  OF  THEIR  INVESTMENT  IN  THE  LIFE
SETTLEMENT  INTEREST  AND  IS  NOT  INTENDED  AS  A  COMPLETE
INVESTMENT PROGRAM.”  (emphasis in original)
44. Despite their  admitted  review  of  the  offering  documents,  Novinger  and  Speers
routinely  represented  life  settlement  interests  to  be  safe  investments  with  extraordinary  returns.
In fact, Novers’s solicitation letters, which were reviewed and approved by Novinger and Speers,
included the following phrases to describe investments in life settlement interests:
a.	 “Risk Free, Non-market investment [that] earns 7-9% guaranteed;”
b.	 “Exclusive, safe investment strategy;”
c.	 “You cannot lose a dollar;” and
d.	 “Not  only  will  this  asset  class  earn  7-9%  annually  without  risk  .  .  .  but  it  is  a
short-term investment (4-6 years) that is safe as CDs and federally insured.”
These representations were false.
45. Novinger  and  Speers  also  made  similar  false  and  misleading  statements  and
omissions  about  the  safety  of  life  settlement  investments  in  one-on-one  communications  with
investors.
46. In  an  October  2,  2013  email,  Speers  told  a  prospective  investor  in Conestoga’s
life  settlement  interests  that they  are  “safe,  guaranteed  investments  with  annualized  return
average  of  7-11%”  and  that  “policies  are  insured  with  large,  A-rated  companies  and  backed  by
Federal Reserves.”
SEC v. Christopher A. Novinger, et al.
COMPLAINT	 Page 17

47. Similarly,  in  a  July  9,  2013  email  to  an  investor  who  subsequently purchased
nearly $450,000 of EDU’s life settlement interests, Speers wrote that life settlements are “by far
the most secure, safe method for growing funds.”
48. For  his  part,  Novinger  represented  in  an  April  4,  2013  email  to  an  investor  who
subsequently purchased  life  settlement  interests  of  Conestoga  and  EDU  that  life  settlement
interests are as “safe as CD’s (sic) [yielding] annual returns of 10-14%.”
Novinger, Speers, and Novers misrepresented their financial expertise.
49. During  the  relevant  period,  Novinger,  Speers,  and  Novers  also falsely  portrayed
themselves as experienced financial professionals with a specialized expertise in life settlements
to  create  a  façade  that  they  were  more  knowledgeable,  experienced,  and  successful  than  they
really  were.    In  fact,  Novinger  and  Speers  have  little  to no  training  in  securities  and  non-
insurance related financial products, including life settlement interests.
50. Further, Novinger  and  Speers  fabricated  personal titles or  designations  to  create
an  air  of  legitimacy  for  themselves and  their  firm  to  deceive  investors  into  believing  they  were
more experienced,  sophisticated,  and  qualified  than  they  really  were.  Novers’s website  and
correspondence identified Novinger and Speers as “licensed financial consultants.”
14
Speers also
used  the  titles  “licensed  consultant”  and  “licensed  financial  strategist”  in  emails  to  investors.
Even  though  they  knew  these  phony titles were not  recognized  designations in  the  financial
services  industry  –  and were thus literally  meaningless  –  Novinger and  Speers  rationalized  that
they  were  licensed  as insurance  agents  and  they  purported  to  provide  financial  strategies  and
financial  consultation.  In  fact,  Novinger  and  Speers  continued  to  use  these  or  similarly
misleading  designations  even  after  the  Oklahoma  Department  of  Securities  specifically  cited
Novers’s website no longer claims Novinger and Speers are licensed financial consultants; instead, it
promotes them as “The Low Risk, Safe Money Guys.”
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 18
14

them   for   omitting   material   information   in   connection   with   their   use   of   these   purported
designations in September 2013.
15
51. Novers also  boasted  in  mass-mailing  solicitation  letters  to  prospective  investors,
in marketing literature, and in other communications with investors that it was “the largest non-
risk  investment  consulting  firm  in  the  Southwest.”  (emphasis  added).  However,  this  purported
claim was based on geographic territory, rather than the number of actual clients or the amount
of  assets  Novers  managed.    In  fact,  the  sole  basis  supporting  this  claim  was  that  Novinger,
Speers, and Novers often drove up to eight hours to solicit investors.
52. Novinger  and  Speers  also  falsely  portray  themselves  as  the  “Low  Risk,  Safe
Money  Guys”  and  as  experienced,  knowledgeable  retirement  experts.    In  reality,  they  sold
securities  that  were  neither  low-risk  nor  safe.    Novinger  and  Speers  are  third-party  marketers
with little or no training in securities and other financial products.  As a result of these deliberate
misrepresentations,  Novinger,  Speers,  and  Novers  furthered  the  façade they  created  to mislead
investors  into  believing  the  life  settlement interests  that  they  marketed  and  sold  were  risk-free,
safe, and guaranteed.
Novinger, Speers, and Novers failed to disclose their regulatory histories.
53. On  Novers’s  website  and  in  emails  to  investors,  Novinger  and  Speers  frequently
touted their purported experience, integrity, and character – without also disclosing their history
of regulatory non-compliance and violations.
The Oklahoma Department of Securities (“ODS”) stated that “[l]icensed investment consultant” and
“[l]icensed financial strategist” are not profession-wide certifications, qualifications or designations.”  The ODS also
noted that Novinger and Speers represented themselves to Oklahoma investors as members of the Financial Planning
Association (“FPA”) and the National Association of Insurance and Financial Advisors (“NAIFA”), however: (i)
Novinger has never been a member of the FPA and his membership in NAIFA lapsed in 2010, and (ii) Speers has
never been a member of NAIFA.
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 19
15

54. For  example,  Speers  wrote  in  a  May  13,  2013  email  to  a  couple  that  expressed
interest  in  investing  in  life  settlements that,  “I  would  never  risk  my  entire  career,  licensing  and
reputation  on  any  investment  vehicle  or  investment  firm  that  wasn’t  highly  accredited  and
properly structured legally.” Speers’ actual conduct, however, belied this statement, because he
purposely  ignored blatant  red  flags  he  learned  about:  (i)  the  TSSB’s  court  order  compelling
Conestoga to produce books and records, (ii) the TSSB’s investigation into Conestoga, and (iii)
the fact that Conestoga’s manager had been involved with a “similar life settlements investment
company  that  ha[d]  been  shut  down  .  .  .  for  alleged  securities  fraud.”  Despite  his  actual
knowledge  of  these  troubling  facts  about  Conestoga,  Speers  ignored  them  and  sold  almost  $1.5
million  of  Conestoga  life  settlement  interests  to  investors, earning  commissions  of  nearly
$160,000 on those sales.
55. In  September  2013,  the  Oklahoma  Department  of  Securities  issued  a  cease-and­
desist  order  against  Novinger,  Speers,  and  Novers  for  their fraudulent  offer  of  unregistered  life
settlement interests in Oklahoma.  However, Novinger, Speers, and Novers failed to disclose to
prospective investors – including four investors who purchased life settlement interests after the
September  2013  cease-and-desist  order  –  that  they  had  been  ordered  to  cease-and-desist  from
conducting a fraudulent offer and sale of unregistered life settlement interests in Oklahoma.
56. Additionally, Novinger, Speers, and Novers failed, throughout 2012 and 2013, to
disclose to investors that Equal Access Health, Inc. (“EAH”), a company owned, managed, and
directed by Novinger and Speers, was charged by the Texas Attorney General, the FCC, and the
California  Department  of  Managed  Health  Care  in  connection  with  EAH’s mass marketing  of
allegedly discounted health plans.
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 20

57. In February  2005,  the  FCC cited EAH for violating  the  Communications  Act  of
1934 and FCC rules governing telephone solicitation and unsolicited advertisements by sending
unsolicited, false, and misleading facsimiles relating to discount health plans.
58. In April  2005,  the  Texas  Attorney  General  charged  EAH with  participating  in  a
fraudulent  scheme  to  market  discount  health  plans.    In  December  2008,  EAH settled  these
charges by agreeing to a final judgment that included a permanent injunction and civil penalties.
59. In  July  2005,  the  State  of  California  ordered  EAH to  cease-and-desist  from
operating  in  California  without  the  appropriate  license  and  from sending  unsolicited  and
misleading  facsimiles.    EAH had  sent  unsolicited  facsimiles  which  purported  to  offer  discounts
from health care providers, some of whom had never even heard of EAH.
60. By omitting and failing to disclose these regulatory issues, Novinger, Speers, and
Novers  misled  investors  about  their  experience, honesty,  and  financial  acumen,  depriving
investors  of  material  information  that  would  have  enabled  them  to  evaluate  the  veracity  and
reliability  of  all claims  made  by  Novinger,  Speers,  and  Novers.  This  is  particularly  important,
because they touted their experience and character to investors.
Novinger and Speers sold more than $4.3 million
of life settlement interests to 26 Texas investors.
61. Between  February  2012  and  January  2014,  Novinger,  Speers,  and  Novers:  (i)
solicited  investors  through  their  website,  via letters,  and  in direct  one-on-one contact,  (ii)
rendered  investment  advice  as  to  the  merits  of  investing  in  life  settlement  interests,  and  (iii)
received commissions ranging from 10% to 13% on their sales of life settlement interests.  They
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 21

recommended and offered securities in the form of life settlement interests to investors in Texas
and Oklahoma.
16
62. Between   February   2012   and   January   2014,   Novinger and   Speers   solicited
investors  to  purchase  life  settlement  investments of Conestoga  and  EDU,  despite  not  being
registered  as  a  broker-dealer or associated  with  a  registered  broker-dealer.  As  a  result  of  these
solicitations, they sold more than $4.3 million of Conestoga and EDU life settlement interests to
26 Texas investors.  More specifically:
•	 Novinger  sold  approximately  $1.08  million  in  life  settlement  interests  to  nine
investors and  received  –  directly or through  ICAN  –  $122,367  in  commissions;
and
•	 Speers sold approximately $3.3 million in life settlement interests to 17 investors
and received – directly or through Speers Financial – $392,456 in commissions.
Novinger, Speers, and Novers continue to reach investors.
63. Novinger  and Speers host a  weekly  radio  show  dubbed  the  “Retirement  Experts
Radio Show,” which airs weekly on Dallas-Fort Worth AM radio stations.  Novinger and Speers
describe their show on the website of one of the radio stations: “We don’t sell.  We educate.  Our
simple  5  step  process  is  transparent,  direct  and  honest  and  our  clients  love  us  for  that.”    This
quote     is     followed     by     a     link     to     Novinger’s and     Speers’s new     website,
SafeRetirementExperts.com.
In fact, Novinger solicited a retired Oklahoma resident to invest $750,000 in life settlement interests.  The
Oklahoma resident ultimately decided not to invest. The Oklahoma Department of Securities issued its cease-and­
desist order against Defendants Novinger, Speers, and Novers in September 2013.
SEC v. Christopher A. Novinger, et al.
COMPLAINT	 Page 22
16

FIRST CLAIM FOR RELIEF

Violations of the Antifraud Provisions of the Securities Act

Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)]

[against Defendants Christopher A. Novinger, Brady J. Speers, and

NFS Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts]

64. The   Commission   repeats   and   re-alleges Paragraphs   1   through   63 of   this
Complaint, as if fully set forth herein.
65. By  engaging  in  the  conduct  described  herein,  Defendants  Novinger,  Speers,  and
Novers, directly or indirectly, singly or in concert, in the offer or sale of securities, by use of the
means  or  instrumentalities  of  interstate  commerce  or  of  the  mails,  knowingly  or  with  severe
recklessness, employed devices, schemes, or artifices to defraud.
66. By  engaging  in  the  foregoing  misconduct,  Defendants  Novinger,  Speers,  and
Novers, directly or indirectly, singly or in concert, in the offer or sale of securities, by use of the
means  or  instrumentalities  of  interstate  commerce  or  of  the  mails,  and  at  least  negligently:  (i)
obtained  money  or  property  by  means  of  untrue  statements  of  material  fact  or  omitted  to  state
material  facts  necessary  in  order  to  make  the  statements  made,  in  light  of  the  circumstances
under which they were made, not misleading; and (ii) engaged in transactions, practices, and/or
courses of business which operate as a fraud or deceit upon purchasers, prospective purchasers,
and other persons.
67. Defendants    Novinger,    Speers,    and    Novers    made    the    above-referenced
misrepresentations and omissions knowingly or with severe recklessness.  Defendants were also
negligent in their actions regarding the representations and omissions alleged herein.
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 23

68. By engaging in this conduct, Defendants Novinger, Speers, and Novers violated,
and  unless  enjoined  will  continue  to  violate,  Section  17(a)  of  the  Securities  Act  [15  U.S.C.  §
77q(a)].
SECOND CLAIM FOR RELIEF
Violations of Antifraud Provisions of the Exchange Act

Section 10(b) [15 U.S.C. § 78j(b)] and Rule 10b-5 [17 C.F.R. § 240.10b-5]

[against Defendants Christopher A. Novinger, Brady J. Speers, and

NFS Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts]

69. The Commission repeats   and   re-alleges   Paragraphs   1   through   68 of   this
Complaint, as if fully set forth herein.
70. By  engaging  in  the  foregoing  misconduct,  Defendants  Novinger,  Speers,  and
Novers,   in   connection   with   the   purchase   or   sale   of   securities,   by   use   of   means   or
instrumentalities  of  interstate  commerce  or  of  the  mails,  or  of  any  facility  of  any  national
securities exchange, directly or indirectly: (i) employed devices, schemes, or artifices to defraud;
(ii) made untrue statements of material facts and omitted to state material facts necessary in order
to  make  the  statements  made,  in  light  of  the  circumstances  under  which  they  were  made,  not
misleading; and (iii) engaged in acts, practices, and courses of business which operate as a fraud
or deceit upon persons, including purchasers or sellers of securities.
71. Defendants    Novinger,    Speers,    and    Novers made    the    above-referenced
misrepresentations and omissions knowingly or with severe recklessness regarding the truth.
72. By engaging in this conduct, Defendants Novinger, Speers, and Novers violated,
and  unless  enjoined  will  continue  to  violate,  Section  10(b)  of  the  Exchange  Act  [15  U.S.C.  §
78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 24

THIRD CLAIM FOR RELIEF

Violations of Broker-Dealer Registration Provisions of the Exchange Act

Section 15(a) [15 U.S.C. § 78o(a)]

[against Defendants Christopher A. Novinger, Brady J. Speers,

NFS Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts,

ICAN Investment Group, LLC, and Speers Financial Group, LLC]

73. The   Commission   repeats   and   re-alleges   Paragraphs   1   through   72 of   this
Complaint, as if fully set forth herein.
74. Defendants Novinger, Speers, Novers, ICAN, and Speers Financial, by use of the
mails  or  any  means  or  instrumentalities of  interstate  commerce,  effected  transactions  in,  or
induced  or  attempted  to  induce  the  purchase  or  sale  of,  securities  without  being  registered  with
the Commission as a broker or dealer or as an associated person of a registered broker or dealer.
75. By  engaging  in  this  conduct,  Defendants  Novinger,  Speers,  Novers,  ICAN,  and
Speers  Financial  violated,  and  unless  enjoined  will  continue  to  violate,  Section  15(a)  of  the
Exchange Act [15 U.S.C. § 78o(a)].
FOURTH CLAIM FOR RELIEF
Violations of the Securities Registration Provisions of the Securities Act

Sections 5(a) and 5(c) [15 U.S.C. §§ 77e(a) and 77e(c)]

[against Defendants Christopher A. Novinger, Brady J. Speers, and

NFS Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts]

76. The   Commission   repeats   and   re-alleges   Paragraphs   1   through   75 of   this
Complaint, as if fully set forth herein
77. By  their  conduct  as  alleged  above,  Defendants  Novinger,  Speers,  and  Novers,
directly or indirectly, singly and in concert with others, (i) made use of the means or instruments
of transportation or communication in interstate commerce or of the mails to sell, through the use
or  medium  of  written  contracts,  offering  documents,  or  otherwise,  securities  as  to  which  no
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 25

registration  statement  was  in  effect;  (ii)  for  the  purpose  of  sale  or  delivery  after  sale,  carried  or
caused to be carried through the mails or in interstate commerce, by any means or instruments of
transportation, securities as to which no registration statement was in effect; or (iii) made use of
any  means  or  instruments  of  transportation  or  communication  in  interstate  commerce  or  of  the
mails  to  offer  to  sell,  through  the  use  or  medium  of  written  contracts,  offering  documents,  or
otherwise, securities as to which no registration statement had been filed..
78. By  engaging  in  this  conduct,  Defendants  Novinger,  Speers,  and  Novers  have
violated and, unless enjoined, will continue to violate Sections 5(a) and 5(c) of the Securities Act
[15 U.S.C. §§ 77e(a) and 77e(c)].
PRAYER FOR RELIEF
For  these  reasons,  the  Commission  respectfully  requests  that  this  Court  enter  a  final
judgment:
a. permanently  enjoining  Christopher  A.  Novinger,  Brady J.  Speers,  and  NFS
Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts from violating
Sections 5(a), 5(c), and 17(a) of the Securities Act and Sections 10(b) and 15(a) of
the Exchange Act and Rule 10b-5 thereunder;
b. permanently  enjoining  ICAN  Investment  Group,  LLC  and  Speers  Financial
Group, LLC from violating Section 15(a) of the Exchange Act;
c. ordering Christopher  A.  Novinger,  Brady  J. Speers,  NFS  Group,  LLC  d/b/a
Novers  Financial  a/k/a  Safe  Retirement  Experts,  ICAN  Investments,  LLC,  and
Speers Financial Group, LLC to disgorge ill-gotten gains and benefits obtained or
to  which  they  were  not  otherwise  entitled,  as  a  result  of  the  violations  alleged
herein, plus prejudgment interest on that amount;
d. ordering Christopher A. Novinger and Brady J.   Speers to pay civil penalties under
Section  20(d)  of  the  Securities  Act  [15  U.S.C.  §  77t(d)]  and  Section  21(d)(3)  of
the Exchange Act [15 U.S.C. § 78u(d)(3)]; and
e. granting such additional relief as the Court deems just, appropriate, and equitable.
SEC v. Christopher A. Novinger, et al.
COMPLAINT Page 26

DATED:May11,2015
Respectfullysubmitted,
)AVIDFRASER
LeadAttorney
TexasBarNo.24012654
SECURITIESANDEXCHANGECOMMISSION
BurnettPlaza,Suite1900
801CherrySt.,Unit#18
FortWorth,TX76102-6882
(817)978-1409
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ATTORNEYFORPLAINTIFF
SECURITIESANDEXCHANGECOMMISSION
SEC v.ChristopherA.Novinger,et a\.
COMPLAINTPage27

Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 1 of 27 PageID 1 

IN THE UNITED STATES DISTRICT COURT
 
FOR THE NORTHERN DISTRICT OF TEXAS
 

FORT WORTH DIVISION 

SECURITIES AND EXCHANGE COMMISSION, §
 
§
 

Plaintiff, §
 
§
 

v. § Case No.: 
§ 

CHRISTOPHER A. NOVINGER, § 
BRADY J. SPEERS, § 
NFS GROUP, LLC d/b/a NOVERS FINANCIAL a/k/a § 
SAFE RETIREMENT EXPERTS, § 
ICAN INVESTMENT GROUP, LLC, and § 
SPEERS FINANCIAL GROUP, LLC, § 

§ 
Defendants. § 

§ 

COMPLAINT 

Plaintiff Securities and Exchange Commission (the “Commission”) files this Complaint 

against Defendants Christopher A. Novinger, Brady J. Speers, NFS Group, LLC d/b/a Novers 

Financial a/k/a Safe Retirement Experts, ICAN Investment Group, LLC, and Speers Financial 

Group, LLC (collectively “Defendants”), and alleges as follows: 

SUMMARY 

1. From February 2012 through January 2014, Defendants Christopher A. Novinger, 

Brady J. Speers, and their company, NFS Group, LLC d/b/a Novers Financial a/k/a Safe 

Retirement Experts (“Novers”), fraudulently offered and sold life settlement interests 1 by falsely 

assuring investors that the investment was: 

A life settlement is a transaction in which an owner of a life insurance policy (frequently the insured) sells 
his/her life insurance policy to a third party for more than the policy’s cash surrender value but less than the policy’s 
face value (or net death benefit).  After a life insurance policy has been sold in a life settlement transaction, the 
buyer can divide the future benefits payable under the policy into fractions and sell these fractional interests to 
others.  These fractional interests in the future benefits payable under a life insurance policy, upon the death of the 
underlying insured, are referred to as life settlement interests. 

1 

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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 2 of 27 PageID 2 

a.	 “safe, guaranteed investment[s] with annualized return average of 7-11%;” 

b.	 “risk free” and one in which “you cannot lose a dollar;” 

c.	 “safe as CDs [yielding] annual returns of 10-14%;” 

d.	 “by far the most secure, safe method for growing funds;” 

e.	 “federally insured;” and 

f.	 comprised of “policies insured with large, A-rated companies and backed by 
Federal Reserves.” 

2. Novinger and Speers, who host a weekly radio show dubbed the “Retirement 

Experts Radio Show” that airs on Dallas/Fort Worth AM radio stations, also made false and 

misleading representations to prospective investors about their purported business experience 

and financial expertise, marketing themselves to prospective investors as (i) licensed financial 

consultants, (ii) “The Low Risk, Safe Money Guys,” (iii) retirement experts, and (iv) “the largest 

non-risk investment consulting firm in the Southwest.” 

3. However, Novinger and Speers possess little to no training relating to securities 

and non-insurance related financial products, including life settlements. Even worse, Novinger 

and Speers have repeatedly been sanctioned by regulatory authorities, including the Oklahoma 

Department of Securities,2 the Texas Attorney General, the State of California’s Department of 

Managed Health Care, and the Federal Communications Commission (“FCC”).3 In fact, the 

Oklahoma Department of Securities sanctioned Novinger, Speers, and Novers in connection with 

their efforts to sell life settlements to Oklahoma residents.  Despite touting their supposed 

2 The Oklahoma Department of Securities issued a cease-and-desist order against Novinger, Speers, and 
Novers in September 2013 for their fraudulent offer of unregistered life settlements in Oklahoma. 
3 The Texas Attorney General, the FCC, and the State of California each took regulatory action against a 
prior company owned, managed, and directed by Novinger and Speers for the company’s participation in a 
fraudulent scheme to mass-market discount health plans. 

SEC v. Christopher A. Novinger, et al. 
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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 3 of 27 PageID 3 

qualifications, Novinger, Speers, and Novers failed to disclose these actions taken against them 

by multiple regulatory agencies. 

4. Novinger and Speers also created phony, meaningless titles for themselves to 

create an air of legitimacy and expertise to deceive investors into believing they were more 

experienced, sophisticated, and legitimate than they really were.  Novinger and Speers each used 

the terms “licensed financial consultant,” “licensed consultant,” and “licensed financial 

strategist” to identify themselves, even though they knew that these titles were not actual, 

recognized designations or certifications in the financial services industry.  They also marketed 

and promoted Novers as “the largest non-risk investment consulting firm in the Southwest,” 

however that claim was based on geographic territory – not on the number of clients Novers had 

or on the amount of assets it managed for clients.  The sole basis for this claim is that Novinger 

and Speers drove up to eight hours to visit and solicit investors. 

5. Presumably because the life settlement interests were not registered as securities 

with the Commission, the two life settlement providers with whom Novinger and Speers had 

selling agreements required investors to be accredited.4 To help investors bolster the putative 

value of their net worth, Novinger, Speers, and Novers furnished some of their investors with a 

“Net Worth Calculator,” which improperly inflated investors’ assets by including anticipated 

Social Security, pension, and other similar payments for 240 months (20 years) into the future. 

This practice had the effect of giving the false and misleading appearance that the investor had a 

large enough net worth to be considered accredited and therefore was an appropriate investor for 

Under the Securities Act of 1933, a company that offers and sells its securities must register the securities 
with the Commission or find an exemption from the registration requirements.  For example, Rules 505 and 506 of 
Regulation D of the Securities Act provide that a company may sell its securities to what are known as “accredited 
investors.”  The term “accredited investor” is defined in Rule 501 of Regulation D and includes, among other things, 
an individual (i) whose net worth, or joint net worth with his/her spouse, exceeds $1 million (excluding the value of 
the individual’s primary residence), or (ii) whose income exceeded $200,000 in each of the two most recent years, or 
whose joint income with that person’s spouse exceeded $300,000 in each of those years, and who has a reasonable 
expectation of reaching the same income level in the current year. 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT Page 3 

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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 4 of 27 PageID 4 

this unregistered offering.  Investors’ assets, however, were much lower and, on multiple 

occasions, investors were not accredited and should not have been permitted to invest in these 

speculative life settlement investments. For example, one couple’s non-homestead assets 

ballooned from $263,000 to nearly $1.5 million – after including 20 years of anticipated, future 

Social Security payments, pension payments, and VA benefits. Hence, though the couple did not 

qualify as accredited investors based on their actual net worth, use of the Net Worth Calculator 

created the false appearance of accreditation. As a result, this retired couple allocated 1/5 of 

their actual net worth to invest in life settlement interests through Novers. And even if a 

potential investor was accredited without including these anticipated future payments, the Net 

Worth Calculator misleadingly gave investors a false and misleading impression of their net 

worth. 

6. Based on these and other misrepresentations, Novinger, Speers, and Novers sold 

more than $4.3 million of life settlement interests to 26 investors, at least three of whom were 

not accredited.  As a result of these sales, Novinger and Speers obtained commissions totaling 

nearly $515,000, which they received directly or through entities they each set up to receive 

compensation from their sales efforts – ICAN Investment Group, LLC (“ICAN”) and Speers 

Financial Group, LLC (“Speers Financial”), respectively. 

7. By fraudulently offering and selling unregistered life settlement interests, which 

are securities, Defendants Novinger, Speers, and Novers violated the antifraud and securities 

registration provisions of the federal securities laws, namely Sections 5(a), 5(c), and 17(a) of the 

Securities Act of 1933 (“Securities Act”) [15 U.S.C. §§ 77e(a), 77e(c), and 77q(a)] and Section 

10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 

10b-5 thereunder [17 C.F.R. § 240.10b-5]. 

SEC v. Christopher A. Novinger, et al. 
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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 5 of 27 PageID 5 

8. By offering and selling life settlement interests, which are securities, without 

being registered as a broker and/or dealer or associated with a registered broker-dealer, pursuant 

to Section 15(b) of the Exchange Act [15 U.S.C. § 78o(b)], Novinger, Speers, ICAN, and Speers 

Financial violated the broker-dealer registration provisions of the federal securities laws, namely 

Section 15(a) of the Exchange Act [15 U.S.C. § 78o(a)]. 

9. In the interest of protecting the public from any further fraudulent activity and 

harm, the Commission brings this action against the Defendants seeking: (i) permanent 

injunctive relief; (ii) disgorgement of Defendants’ ill-gotten gains; (iii) accrued prejudgment 

interest on those ill-gotten gains; and (iv) civil monetary penalties. 

JURISDICTION AND VENUE 

10. Defendants Novinger, Speers, and Novers offered and sold securities – life 

settlement interests – to investors.  The life settlement interests are investment contracts, which 

are securities as defined by Section 2(a)(1) of the Securities Act [15 U.S.C. §77b] and Section 

3(a)(10) of the Exchange Act [15 U.S.C. §78c]. As such, the Court has jurisdiction over this 

action pursuant to Section 20(b) of the Securities Act [15 U.S.C. § 77t(b)] and Sections 21(d), 

21(e), and 27 of the Exchange Act [15 U.S.C. §§ 78u(d), 78u(e), and 78(aa)]. 

11. Venue is proper because a substantial part of the events or omissions giving rise 

to the claims occurred within the Northern District of Texas, Fort Worth Division.  Novinger and 

Speers are residents of Mansfield, Texas. Novers maintains its principal place of business in 

Mansfield, Texas.  Novinger and Speers are the registered director and manager, respectively, of 

ICAN and Speers Financial.  All of these locations are within the Fort Worth Division of the 

Northern District of Texas. 

SEC v. Christopher A. Novinger, et al. 
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DEFENDANTS
 

12. Christopher A. Novinger, age 38, resides in Mansfield, Texas. Novinger 

maintains a license with the Texas Department of Insurance, but he has never been associated 

with a registered broker-dealer or investment adviser.  Novinger is a principal and managing 

member of Defendant Novers and the director of Defendant ICAN. Another company owned, 

managed, and directed by Novinger (and Speers) – Equal Access Health, Inc. (“EAH”) – was 

sanctioned by the Texas Attorney General, the FCC, and the State of California for its 

participation in a fraudulent scheme to mass-market allegedly discounted health plans. 

13. Brady J. Speers, age 45, resides in Mansfield, Texas. Speers maintains a license 

with the Texas Department of Insurance, but he has never been associated with a registered 

broker-dealer or investment adviser.  Speers is a principal and managing member of Defendant 

Novers and the manager of Defendant Speers Financial. Speers was also an owner, manager, 

and director of EAH. 

14. NFS Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts 

(“Novers”), a Texas limited liability company formed in November 2012, maintains its principal 

place of business in Mansfield, Texas.  Prior to filing a certificate of formation for NFS Group, 

LLC with the Texas Secretary of State in November 2012, Novinger and Speers jointly 

conducted business under the name Novers Financial, which was not a registered legal entity. 

After forming NFS Group, LLC, Novinger and Speers continued to conduct business as Novers 

Financial, which became a “d/b/a” for NFS Group, LLC.  In approximately April 2014, Novinger 

and Speers began operating NFS Group, LLC under the assumed name of Safe Retirement 

Experts.  Neither Novers nor its securities is registered with the Commission, and Novers has not 

SEC v. Christopher A. Novinger, et al. 
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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 7 of 27 PageID 7 

registered any offering of securities with the Commission.  Defendants Novinger and Speers are 

Novers’ principals and managing members. 

15. ICAN Investment Group, LLC (“ICAN”), a Texas limited liability company 

formed in October 2013, maintains its principal place of business in Mansfield, Texas. 

Defendant Novinger, ICAN’s director, formed ICAN to receive commissions on his sales of life 

settlement interests to investors.  Neither ICAN nor its securities is registered with the 

Commission, and ICAN has not registered any offering of securities with the Commission. 

16. Speers Financial Group, LLC (“Speers Financial”), a Nevada limited liability 

company formed in October 2013, maintains its principal place of business in Mansfield, Texas. 

Defendant Speers formed Speers Financial to receive commissions on his sales of life settlement 

interests to investors. Neither Speers Financial nor its securities is registered with the 

Commission, and Speers Financial has not registered any offering of securities with the 

Commission. Speers serves as the manager of Speers Financial. 

RELATED ENTITIES 

17. Conestoga International, LLC (“Conestoga”), a Puerto Rico limited liability 

company with a principal place of business in San Juan, Puerto Rico, is an issuer/seller of 

fractional interests in the future benefits payable under life insurance policies when the insureds 

underlying the policies die (a/k/a life settlement interests).  Neither Conestoga nor the life 

settlement interests it offers and sells is registered with the Commission. Similarly, Conestoga 

has not registered an offering of securities with the Commission, but it has filed a Form D (and 

amendments thereto), claiming an exemption from registration under Rule 506 of Regulation D 

SEC v. Christopher A. Novinger, et al. 
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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 8 of 27 PageID 8 

of the Securities Act for its offering of life settlement interests.5 Defendants Novinger, Speers, 

and Novers offered and sold Conestoga’s life settlement interests from February 2012 to January 

2014. 

18. EDU Financial Strategies, LLC (“EDU”), an Indiana limited liability company 

with a principal place of business in Indianapolis, is an issuer/seller of life settlement interests.  

Neither EDU nor the life settlement interests it offers and sells are registered with the 

Commission.  Likewise, EDU has not registered an offering of securities with the Commission, 

nor did it file a Form D with the Commission until July 2014 – after EDU terminated its sales 

agent agreements with Defendants Novinger and Speers.  EDU’s earlier private placement 

memoranda (“PPM”), seeking to raise $25 million, claimed an exemption from registration under 

Rule 506.  Novinger, Speers, and Novers offered and sold EDU’s life settlement interests from 

February 2013 to August 2013. 

STATEMENT OF FACTS 

19. Defendants Novinger and Speers began working together in the late 1990s, selling 

all manner of goods, services, and investment interests, including ties, grandfather clocks, 

allegedly discounted health plans, annuities, and life settlement interests as third-party marketers. 

Novinger and Speers are introduced to life settlements and begin selling for Conestoga. 

20. In early 2012, Novinger and Speers were first introduced to an investment known 

as life settlements – fractionalized interests in the benefits payable under life insurance policies 

upon the death of the underlying insured6 – by a senior field adviser for Conestoga.  

5 As of November 2013, the face value of Conestoga’s offering of life settlement interests was more than 
$100 million. As of March 23, 2015, the face value of the offering was more than $161 million, of which more than 
$140 million had already been sold and more than $21 million remained to be sold. 
6 An owner of a fractional interest in a life insurance policy has the right to collect the benefits (equal to the 
percent – or fraction – he/she owns in a particular life insurance policy) that are payable to the owner of the life 
insurance policy when the insured underlying the policy dies. 

SEC v. Christopher A. Novinger, et al. 
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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 9 of 27 PageID 9 

21. In February 2012, Novinger and Speers each entered into independent contractor 

agreements with Conestoga to offer and sell its life settlement investments to investors in return 

for a 10% commission on those sales. Thereafter, Novinger and Speers, jointly doing business as 

Novers Financial, began offering Conestoga’s life settlement interests to investors. 

22. In August 2012, a Conestoga senior field adviser told Novinger and Speers the 

“crazy good news” that the JOBS Act7 allowed solicitation to the general public, that sales 

agents could have approved advertisements, and that Conestoga would reimburse sales agents 

dollar-for-dollar for any approved advertising.  However, Conestoga’s senior field adviser later 

informed Novinger and Speers that they would not be allowed to advertise until after rules were 

adopted under the JOBS Act. 

23. In November 2012, Novinger and Speers filed a Certificate of Formation with the 

Texas Secretary of State to legally form NFS Group, LLC, and continued to conduct business as 

Novers Financial. 

Novinger and Speers begin selling EDU life settlement interests. 

24. In February 2013, Novinger and Speers each executed agent appointment 

agreements with EDU – another company offering and selling life settlement interests – and 

began offering and selling EDU’s life settlement interests to investors. EDU paid Novinger and 

Speers a 13% commission on their sales of EDU’s life settlement interests to investors. 

Life settlement interests offered and sold by Conestoga and EDU are securities. 

25. The life settlement investments of Conestoga and EDU, which were offered and 

sold to investors by Defendants Novinger, Speers, and Novers, are investment contracts within 

Signed into law on April 5, 2012, the Jumpstart Our Business Startups (“JOBS”) Act directed the 
Commission to revise Rule 506 of Regulation D of the Securities Act within 90 days to permit general solicitation of 
investors, provided that all purchasers are accredited investors and the issuer has taken reasonable steps to verify 
their accredited status. 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT Page 9 

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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 10 of 27 PageID 10 

the meaning of the federal securities laws. When purchasing a life settlement interest, investors 

contract to invest money in a common enterprise with the expectation that they will derive 

profits solely from the entrepreneurial and managerial efforts of others.  In other words, investor 

funds are pooled in a common enterprise (the total number of fractional interests that comprise 

100% interest in the benefits payable under a single life insurance policy) and the investment is 

wholly passive.  Investors hope to profit solely through – and their fortunes in this investment 

opportunity are inextricably linked to – the efforts and purported expertise of others.  Investors 

are not expected to, and in fact have no means to, actively participate in the enterprise to obtain 

investment returns, rather any profits or losses they obtain are dependent upon the success or 

failure of others. 

26. In connection with each life insurance policy they fractionalize for sale as life 

settlement interests, Conestoga and EDU (the “Issuers”) – and third parties with whom they may 

contract to perform services on their behalf – undertake and perform a variety of entrepreneurial 

and managerial efforts that are critical to the success or failure of the investment, i.e., whether 

investors derive profits or incur losses from their investments in life settlement interests.  These 

efforts include: 

a.	 identifying and evaluating life insurance policies presented to them for 
purchase; 

b.	 providing exclusive policy providers with parameters for life insurance 
policies that they are interested in purchasing, including, among other things, 
the age of the insureds, the length of the life expectancy estimates (“LEs”), 
preferred or disfavored LE providers, types of policy (for example, no 
stranger-originated life insurance (“STOLI”) policies), and preferred 
insurance companies; 

c.	 reviewing and analyzing the LEs of the insured on whose life the policy is 
issued;8 

The LEs are typically provided to the Issuers when the policy is presented to them for purchase. 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT	 Page 10 

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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 11 of 27 PageID 11 

d.	 negotiating the purchase price of the life insurance policy; 

e.	 purchasing the life insurance policy; 

f.	 dividing the benefits payable under the life insurance policy upon the death of 
the insured into fractional interests; 

g. calculating and establishing the price to charge investors for each fractional 
interest in the policy; 

h. soliciting and contracting with independent contractors to market, offer, and 
sell the fractional interests in the policy to investors in exchange for 
commissions ranging from 10% to 13%; 

i. creating disclosure and offering materials to use in offering and selling life 
settlement interests to retail investors; 

j.	 offering and selling fractional interests in the policy to investors through a 
network of sales agents; 

k.	 paying the necessary premium amounts for unsold portions of the policy until 
all fractional interests in the policy are sold to keep the policy in effect – and 
avoid lapsing – while the Issuers and their sales agents solicit investors to 
purchase the remaining, outstanding fractional interests in the policy; 9 

l.	 engaging an independent third party to act as an escrow agent for investors in 
their life settlement interests; 

m. creating accounts with the escrow agent to ensure premiums on the policy are 
paid on time when they come due so that the policy does not lapse; 

n.	 directing the escrow agent how to allocate investor funds received from retail 
investors to purchase life settlement interests; 

o.	 directing the escrow agent how to disburse fees and commissions, and how 
and when to make periodic premium payments to the insurance company; 

p.	 organizing, coordinating, and overseeing the escrow agent to ensure that 
investor funds are being allocated accurately, appropriately, and timely, and 

It may take the Issuers a matter of months or a few years to sell all fractional interests in a policy. In fact, it 
took Conestoga three years to sell all fractional interests in one of the policies it offered.  In another instance, a 
policy matured before Conestoga sold all fractional interests, and Conestoga became the interest owner of the unsold 
portion of the policy. Additionally, the entity from whom EDU purchases life insurance policies may continue to 
pay premiums on the unsold, outstanding portions of the policies until all fractional interests have been sold, but 
EDU must monitor to ensure these premium payments are being made and that current fractional investors are not at 
risk of losing their interests due to unpaid premiums. 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT	 Page 11 

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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 12 of 27 PageID 12 

that premium payments are being made as they come due (including directing 
the escrow agent to the proper accounts in which the funds to be used for 
premium payments are located); 

q.	 tracking when premium payments are due on each and every policy in which 
they have sold fractional interests, or contracting with a third party to perform 
this function; 

r. tracking the fractional interest percentages of each interest owner to know 
how much each interest owner owes when the premium comes due; 

s. maintaining contact with each fractional interest owner to keep updated 
records as each investor moves, dies, transfers his/her interest to other 
individuals, or abandons his/her interest – so the Issuers ensure that the 
entirety of a policy’s premiums are being timely paid and the policy is not at 
risk of lapsing; 

t. re-selling fractional interests10 when investors abandon their interests or 
choose to no longer pay their portion of premiums (beyond those already 
escrowed) when they come due; 11 

u. tracking the insured to determine when he/she dies and the policy matures, or 
contracting with a third party to do so; 

v. reallocating premium funds that are left over if an insured dies before all of 
the escrowed premiums have been depleted; 

w. obtaining the necessary documentation for the insurance company once the 
insured has died, including a death certificate; 

x. making a timely demand upon the insurance company for payment of death 
benefits under the policy after the insured dies; 

y. taking measures to enforce the rights of fractional interest owners if an 
insurance company (or competing claimants) challenge the validity of a policy 
or the distribution of insurance benefits under the policy when an insured 
dies;12 

10 EDU represents that it will facilitate a secondary market for life settlement interests it has sold to fractional 
interest owners. 
11 Should an investor of an EDU life settlement interest decide he or she no longer wishes to own the 
investment or decides it no longer wants to pay the necessary premiums to keep the underlying policy in force, EDU 
represents that it may repay an investor’s original principal investment amount if EDU is able to identify and locate 
an investor to purchase that interest. 
12 In fact, Conestoga has taken numerous steps to pursue its claims and those of investors in its life 
settlements, including protracted litigation with the insurance company to pay the claim. 

SEC v. Christopher A. Novinger, et al. 
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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 13 of 27 PageID 13 

z.	 coordinating and organizing to ensure proceeds from a matured insurance 
policy are accurately disbursed to the interest owners based on each investor’s 
fractional interest; and 

aa. conducting other post-sale efforts to ensure that premiums are paid, the policy 
does not lapse, investors collect their portion of the insurance proceeds when 
the insured dies, and left-over premiums, if any, are returned to investors or 
credited to other policies in which they own interests. 

27. These efforts that the Issuers perform – before investors purchase life settlement 

interests from them and afterwards – are vital to the sale of all fractional interests in each policy 

and are critical to the success or failure of the investments.  From the start, an investor must rely 

on the Issuers to sell 100% of the fractionalized life settlement interests in the life insurance 

policy in which he or she has invested just to ensure that the policy can be maintained going 

forward, i.e., premiums and other obligations can be satisfied so that a policy will not lapse and 

death benefits will be available and payable upon the insured’s death (whenever that may be).  

Indeed, if the Issuers do not successfully perform any of these efforts, investors are directly at 

risk of losing their entire investment principal – before even contemplating or worrying about 

prospective returns on that investment. 

Novinger, Speers, and Novers begin a general solicitation campaign. 

28. In May 2013, while selling EDU’s life settlements, Novers began a general 

solicitation campaign by mass-mailing letters prepared and approved by Novinger and Speers 

that falsely described the life settlement interests they offered as guaranteed, safe as a CD, and 

federally-insured with an annual return of 7% to 9%. 

29. In August 2013, EDU began requiring its sales agents to be licensed securities 

professionals, so it terminated its agreements with Novinger and Speers. 

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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 14 of 27 PageID 14 

30. Novinger and Speers then resumed selling Conestoga’s life settlement interests, 

and continued their general solicitations of prospective investors. 

31. Between May 31, 2013 and January 5, 2014, Novers sent five virtually identical 

letters to nearly 23,000 residents of Dallas, Fort Worth, and the surrounding areas.  Based on 

these mass mailings, Novinger, Speers, and Novers sold Conestoga’s life settlement interests to 

investors. 

32. In early January 2014, Conestoga terminated its independent contractor 

agreements with Novinger and Speers, because they were sending solicitation letters to 

prospective investors that had not been approved by Conestoga. 

Novinger, Speers, and Novers misled investors into artificially inflating their 
net worth and sold life settlement interests to non-accredited investors. 

33. During the relevant period that Novinger, Speers, and Novers offered and sold life 

settlement interests, Conestoga and EDU purportedly required investors to be – and allowed 

them to self-verify that they were – accredited.  

34. However, Novinger, Speers, and Novers sold life settlement interests of 

Conestoga and EDU to several non-accredited investors. 

35. Novinger, Speers, and Novers provided at least several of their clients with a Net 

Worth Calculator to compute their net worth and determine whether they were accredited 

investors.  However, the Net Worth Calculator provided by Novinger, Speers, and Novers 

improperly inflated investors’ assets by including estimated Social Security benefits, pension 

payments, and other similar payments – for 240 months (20 years) into the future. 

36. As a result, Novinger, Speers, and Novinger sold life settlement interests to at 

least three investors who were not accredited.  Two of these investors purchased their life 

SEC v. Christopher A. Novinger, et al. 
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settlement interests after September 23, 201313 and became accredited solely as a result of the 

bogus inflation of their assets using anticipated future income for the following 240 months. As 

a result, the Rule 506(c) exemption is not available to Novinger, Speers, and Novers.  The third 

investor, who was not accredited even after using the Net Worth Calculator, purchased $50,000 

of EDU’s life settlement interests from Novinger in April 2013. 

37. For example, one couple used the Net Worth Calculator provided by Novers and 

saw its non-homestead assets balloon from $263,000 to nearly $1.5 million, which included 20 

years of Social Security benefits, pension payments, and VA-related benefits that the couple 

anticipated receiving for the next 20 years.  Hence, though the couple’s actual net worth did not 

qualify the couple as accredited, the Net Worth Calculator misled the investors by falsely 

creating the appearance of accreditation and by enabling the couple to self-verify that it was 

accredited.  As a result, this retired couple invested nearly 1/5 of their actual net worth ($50,000) 

in Conestoga’s life settlement interests, through Speers, in December 2013.  

Novinger, Speers, and Novers misrepresented life settlement investments to investors. 

38. Conestoga’s senior field adviser provided Novinger and Speers with Conestoga’s 

offering materials, sales and marketing materials, and training materials. In turn, Novinger, 

Speers, and Novers used these materials to create their own brochures to market, promote, offer, 

and sell Conestoga’s life settlement interests to investors. 

39. Novinger, Speers, and Novers sent marketing materials, and made statements, to 

investors that that they knew, or were extremely reckless in not knowing, were false, because 

they directly contradicted what they had read in the risk disclosures of Conestoga’s offering 

documents.  For example, despite reading in Conestoga’s Private Placement Memorandum 

Rule 506(c) of Regulation D of the Securities Act became effective on September 23, 2013, allowing 
general solicitations and advertising of offerings if, and only if, all sales are made to accredited investors. 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT Page 15 

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(“PPM”) that Conestoga’s life settlement interests were illiquid and not guaranteed, Novinger, 

Speers, and Novers described them as “insured/bonded” and as “safe as CDs.” 

40. Speers and Novers also knowingly disregarded material, negative information 

about Conestoga and its principals that: (i) undermined the safety and security of life settlement 

investments issued by Conestoga, (ii) cast serious doubt on the credibility of Conestoga and its 

principals, and (iii) conflicted with representations in Novers’ marketing materials and 

communications that life settlements were “safe as CDs” and insured. 

41. Within a day of signing his sales agent agreement with Conestoga in February 

2012, Speers asked Conestoga’s senior field adviser – an independent contractor of Conestoga 

just like Speers and Novinger – about a November 2010 internet posting that described a court 

order obtained by the Texas State Securities Board (“TSSB”) compelling Conestoga to produce 

certain books and records.  The internet posting revealed that the State of Texas was 

investigating Conestoga and that Conestoga’s sole manager had been involved with a “similar 

life settlements investment company that has been shut down . . . for alleged securities fraud.” 

42. Conestoga’s senior field adviser deflected Speers’ inquiry by claiming that life 

settlement interests are not securities, and Speers made no further inquiry, ignoring statements 

that Conestoga’s manager had been involved with a company accused of securities fraud. 

Novinger, Speers, and Novers misrepresented 
life settlement interests as safe and guaranteed. 

43. The offering materials of Conestoga and EDU both describe various risks 

associated with investments in life settlements.  For example, the offering materials disclose that: 

a. there is “no annual rate of return;” 

b. there are no guarantees of any potential rate of return; 

c. the investment is not liquid; 

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d.	 there is uncertainty regarding an insured’s life expectancy; 

e.	 policies could lapse if premiums go unpaid; and 

f.	 “THIS IS A HIGHLY SPECULATIVE INVESTMENT. IT IS DESIGNED FOR 
SOPHISTICATED INVESTORS WHO ARE ABLE TO BEAR THE 
ECONOMIC RISK OF THE LOSS OF THEIR INVESTMENT IN THE LIFE 
SETTLEMENT INTEREST AND IS NOT INTENDED AS A COMPLETE 
INVESTMENT PROGRAM.”  (emphasis in original) 

44. Despite their admitted review of the offering documents, Novinger and Speers 

routinely represented life settlement interests to be safe investments with extraordinary returns. 

In fact, Novers’s solicitation letters, which were reviewed and approved by Novinger and Speers, 

included the following phrases to describe investments in life settlement interests: 

a.	 “Risk Free, Non-market investment [that] earns 7-9% guaranteed;” 

b.	 “Exclusive, safe investment strategy;” 

c.	 “You cannot lose a dollar;” and 

d.	 “Not only will this asset class earn 7-9% annually without risk . . . but it is a 
short-term investment (4-6 years) that is safe as CDs and federally insured.” 

These representations were false. 

45. Novinger and Speers also made similar false and misleading statements and 

omissions about the safety of life settlement investments in one-on-one communications with 

investors.  

46. In an October 2, 2013 email, Speers told a prospective investor in Conestoga’s 

life settlement interests that they are “safe, guaranteed investments with annualized return 

average of 7-11%” and that “policies are insured with large, A-rated companies and backed by 

Federal Reserves.” 

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47. Similarly, in a July 9, 2013 email to an investor who subsequently purchased 

nearly $450,000 of EDU’s life settlement interests, Speers wrote that life settlements are “by far 

the most secure, safe method for growing funds.” 

48. For his part, Novinger represented in an April 4, 2013 email to an investor who 

subsequently purchased life settlement interests of Conestoga and EDU that life settlement 

interests are as “safe as CD’s (sic) [yielding] annual returns of 10-14%.” 

Novinger, Speers, and Novers misrepresented their financial expertise. 

49. During the relevant period, Novinger, Speers, and Novers also falsely portrayed 

themselves as experienced financial professionals with a specialized expertise in life settlements 

to create a façade that they were more knowledgeable, experienced, and successful than they 

really were. In fact, Novinger and Speers have little to no training in securities and non-

insurance related financial products, including life settlement interests. 

50. Further, Novinger and Speers fabricated personal titles or designations to create 

an air of legitimacy for themselves and their firm to deceive investors into believing they were 

more experienced, sophisticated, and qualified than they really were. Novers’s website and 

correspondence identified Novinger and Speers as “licensed financial consultants.”14 Speers also 

used the titles “licensed consultant” and “licensed financial strategist” in emails to investors. 

Even though they knew these phony titles were not recognized designations in the financial 

services industry – and were thus literally meaningless – Novinger and Speers rationalized that 

they were licensed as insurance agents and they purported to provide financial strategies and 

financial consultation. In fact, Novinger and Speers continued to use these or similarly 

misleading designations even after the Oklahoma Department of Securities specifically cited 

Novers’s website no longer claims Novinger and Speers are licensed financial consultants; instead, it 
promotes them as “The Low Risk, Safe Money Guys.” 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT Page 18 

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them for omitting material information in connection with their use of these purported 

designations in September 2013.15 

51. Novers also boasted in mass-mailing solicitation letters to prospective investors, 

in marketing literature, and in other communications with investors that it was “the largest non-

risk investment consulting firm in the Southwest.” (emphasis added). However, this purported 

claim was based on geographic territory, rather than the number of actual clients or the amount 

of assets Novers managed.  In fact, the sole basis supporting this claim was that Novinger, 

Speers, and Novers often drove up to eight hours to solicit investors. 

52. Novinger and Speers also falsely portray themselves as the “Low Risk, Safe 

Money Guys” and as experienced, knowledgeable retirement experts. In reality, they sold 

securities that were neither low-risk nor safe.  Novinger and Speers are third-party marketers 

with little or no training in securities and other financial products.  As a result of these deliberate 

misrepresentations, Novinger, Speers, and Novers furthered the façade they created to mislead 

investors into believing the life settlement interests that they marketed and sold were risk-free, 

safe, and guaranteed. 

Novinger, Speers, and Novers failed to disclose their regulatory histories. 

53. On Novers’s website and in emails to investors, Novinger and Speers frequently 

touted their purported experience, integrity, and character – without also disclosing their history 

of regulatory non-compliance and violations. 

The Oklahoma Department of Securities (“ODS”) stated that “[l]icensed investment consultant” and 
“[l]icensed financial strategist” are not profession-wide certifications, qualifications or designations.”  The ODS also 
noted that Novinger and Speers represented themselves to Oklahoma investors as members of the Financial Planning 
Association (“FPA”) and the National Association of Insurance and Financial Advisors (“NAIFA”), however: (i) 
Novinger has never been a member of the FPA and his membership in NAIFA lapsed in 2010, and (ii) Speers has 
never been a member of NAIFA. 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT Page 19 

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54. For example, Speers wrote in a May 13, 2013 email to a couple that expressed 

interest in investing in life settlements that, “I would never risk my entire career, licensing and 

reputation on any investment vehicle or investment firm that wasn’t highly accredited and 

properly structured legally.” Speers’ actual conduct, however, belied this statement, because he 

purposely ignored blatant red flags he learned about: (i) the TSSB’s court order compelling 

Conestoga to produce books and records, (ii) the TSSB’s investigation into Conestoga, and (iii) 

the fact that Conestoga’s manager had been involved with a “similar life settlements investment 

company that ha[d] been shut down . . . for alleged securities fraud.” Despite his actual 

knowledge of these troubling facts about Conestoga, Speers ignored them and sold almost $1.5 

million of Conestoga life settlement interests to investors, earning commissions of nearly 

$160,000 on those sales.  

55. In September 2013, the Oklahoma Department of Securities issued a cease-and­

desist order against Novinger, Speers, and Novers for their fraudulent offer of unregistered life 

settlement interests in Oklahoma.  However, Novinger, Speers, and Novers failed to disclose to 

prospective investors – including four investors who purchased life settlement interests after the 

September 2013 cease-and-desist order – that they had been ordered to cease-and-desist from 

conducting a fraudulent offer and sale of unregistered life settlement interests in Oklahoma. 

56. Additionally, Novinger, Speers, and Novers failed, throughout 2012 and 2013, to 

disclose to investors that Equal Access Health, Inc. (“EAH”), a company owned, managed, and 

directed by Novinger and Speers, was charged by the Texas Attorney General, the FCC, and the 

California Department of Managed Health Care in connection with EAH’s mass marketing of 

allegedly discounted health plans. 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT Page 20Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 21 of 27 PageID 21 

57. In February 2005, the FCC cited EAH for violating the Communications Act of 

1934 and FCC rules governing telephone solicitation and unsolicited advertisements by sending 

unsolicited, false, and misleading facsimiles relating to discount health plans. 

58. In April 2005, the Texas Attorney General charged EAH with participating in a 

fraudulent scheme to market discount health plans.  In December 2008, EAH settled these 

charges by agreeing to a final judgment that included a permanent injunction and civil penalties. 

59. In July 2005, the State of California ordered EAH to cease-and-desist from 

operating in California without the appropriate license and from sending unsolicited and 

misleading facsimiles.  EAH had sent unsolicited facsimiles which purported to offer discounts 

from health care providers, some of whom had never even heard of EAH.  

60. By omitting and failing to disclose these regulatory issues, Novinger, Speers, and 

Novers misled investors about their experience, honesty, and financial acumen, depriving 

investors of material information that would have enabled them to evaluate the veracity and 

reliability of all claims made by Novinger, Speers, and Novers. This is particularly important, 

because they touted their experience and character to investors. 

Novinger and Speers sold more than $4.3 million 
of life settlement interests to 26 Texas investors. 

61. Between February 2012 and January 2014, Novinger, Speers, and Novers: (i) 

solicited investors through their website, via letters, and in direct one-on-one contact, (ii) 

rendered investment advice as to the merits of investing in life settlement interests, and (iii) 

received commissions ranging from 10% to 13% on their sales of life settlement interests.  They 

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recommended and offered securities in the form of life settlement interests to investors in Texas 

and Oklahoma.16 

62. Between February 2012 and January 2014, Novinger and Speers solicited 

investors to purchase life settlement investments of Conestoga and EDU, despite not being 

registered as a broker-dealer or associated with a registered broker-dealer. As a result of these 

solicitations, they sold more than $4.3 million of Conestoga and EDU life settlement interests to 

26 Texas investors.  More specifically: 

•	 Novinger sold approximately $1.08 million in life settlement interests to nine 
investors and received – directly or through ICAN – $122,367 in commissions; 
and 

•	 Speers sold approximately $3.3 million in life settlement interests to 17 investors 
and received – directly or through Speers Financial – $392,456 in commissions. 

Novinger, Speers, and Novers continue to reach investors. 

63. Novinger and Speers host a weekly radio show dubbed the “Retirement Experts 

Radio Show,” which airs weekly on Dallas-Fort Worth AM radio stations.  Novinger and Speers 

describe their show on the website of one of the radio stations: “We don’t sell.  We educate.  Our 

simple 5 step process is transparent, direct and honest and our clients love us for that.”  This 

quote is followed by a link to Novinger’s and Speers’s new website, 

SafeRetirementExperts.com. 

In fact, Novinger solicited a retired Oklahoma resident to invest $750,000 in life settlement interests.  The 
Oklahoma resident ultimately decided not to invest. The Oklahoma Department of Securities issued its cease-and­
desist order against Defendants Novinger, Speers, and Novers in September 2013. 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT	 Page 22 

16 

http:SafeRetirementExperts.com


  
                 

  
 

 
 

 
     

  
 

     

  

    

    

 

  

   

  

   

 

 

   

 

   

    

   

     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 23 of 27 PageID 23 

FIRST CLAIM FOR RELIEF
 

Violations of the Antifraud Provisions of the Securities Act
 
Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)]
 

[against Defendants Christopher A. Novinger, Brady J. Speers, and
 
NFS Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts]
 

64. The Commission repeats and re-alleges Paragraphs 1 through 63 of this 

Complaint, as if fully set forth herein.  

65. By engaging in the conduct described herein, Defendants Novinger, Speers, and 

Novers, directly or indirectly, singly or in concert, in the offer or sale of securities, by use of the 

means or instrumentalities of interstate commerce or of the mails, knowingly or with severe 

recklessness, employed devices, schemes, or artifices to defraud. 

66. By engaging in the foregoing misconduct, Defendants Novinger, Speers, and 

Novers, directly or indirectly, singly or in concert, in the offer or sale of securities, by use of the 

means or instrumentalities of interstate commerce or of the mails, and at least negligently: (i) 

obtained money or property by means of untrue statements of material fact or omitted to state 

material facts necessary in order to make the statements made, in light of the circumstances 

under which they were made, not misleading; and (ii) engaged in transactions, practices, and/or 

courses of business which operate as a fraud or deceit upon purchasers, prospective purchasers, 

and other persons. 

67. Defendants Novinger, Speers, and Novers made the above-referenced 

misrepresentations and omissions knowingly or with severe recklessness.  Defendants were also 

negligent in their actions regarding the representations and omissions alleged herein. 

SEC v. Christopher A. Novinger, et al. 
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68. By engaging in this conduct, Defendants Novinger, Speers, and Novers violated, 

and unless enjoined will continue to violate, Section 17(a) of the Securities Act [15 U.S.C. § 

77q(a)]. 

SECOND CLAIM FOR RELIEF 

Violations of Antifraud Provisions of the Exchange Act
 
Section 10(b) [15 U.S.C. § 78j(b)] and Rule 10b-5 [17 C.F.R. § 240.10b-5]
 

[against Defendants Christopher A. Novinger, Brady J. Speers, and 

NFS Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts]
 

69. The Commission repeats and re-alleges Paragraphs 1 through 68 of this 

Complaint, as if fully set forth herein. 

70. By engaging in the foregoing misconduct, Defendants Novinger, Speers, and 

Novers, in connection with the purchase or sale of securities, by use of means or 

instrumentalities of interstate commerce or of the mails, or of any facility of any national 

securities exchange, directly or indirectly: (i) employed devices, schemes, or artifices to defraud; 

(ii) made untrue statements of material facts and omitted to state material facts necessary in order 

to make the statements made, in light of the circumstances under which they were made, not 

misleading; and (iii) engaged in acts, practices, and courses of business which operate as a fraud 

or deceit upon persons, including purchasers or sellers of securities. 

71. Defendants Novinger, Speers, and Novers made the above-referenced 

misrepresentations and omissions knowingly or with severe recklessness regarding the truth. 

72. By engaging in this conduct, Defendants Novinger, Speers, and Novers violated, 

and unless enjoined will continue to violate, Section 10(b) of the Exchange Act [15 U.S.C. § 

78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5]. 

SEC v. Christopher A. Novinger, et al. 
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     Case 4:15-cv-00358-O Document 1 Filed 05/11/15 Page 25 of 27 PageID 25 

THIRD CLAIM FOR RELIEF
 

Violations of Broker-Dealer Registration Provisions of the Exchange Act
 
Section 15(a) [15 U.S.C. § 78o(a)]
 

[against Defendants Christopher A. Novinger, Brady J. Speers,
 
NFS Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts,
 

ICAN Investment Group, LLC, and Speers Financial Group, LLC]
 

73. The Commission repeats and re-alleges Paragraphs 1 through 72 of this 

Complaint, as if fully set forth herein. 

74. Defendants Novinger, Speers, Novers, ICAN, and Speers Financial, by use of the 

mails or any means or instrumentalities of interstate commerce, effected transactions in, or 

induced or attempted to induce the purchase or sale of, securities without being registered with 

the Commission as a broker or dealer or as an associated person of a registered broker or dealer. 

75. By engaging in this conduct, Defendants Novinger, Speers, Novers, ICAN, and 

Speers Financial violated, and unless enjoined will continue to violate, Section 15(a) of the 

Exchange Act [15 U.S.C. § 78o(a)]. 

FOURTH CLAIM FOR RELIEF 

Violations of the Securities Registration Provisions of the Securities Act
 
Sections 5(a) and 5(c) [15 U.S.C. §§ 77e(a) and 77e(c)]
 

[against Defendants Christopher A. Novinger, Brady J. Speers, and 

NFS Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts]
 

76. The Commission repeats and re-alleges Paragraphs 1 through 75 of this 

Complaint, as if fully set forth herein 

77. By their conduct as alleged above, Defendants Novinger, Speers, and Novers, 

directly or indirectly, singly and in concert with others, (i) made use of the means or instruments 

of transportation or communication in interstate commerce or of the mails to sell, through the use 

or medium of written contracts, offering documents, or otherwise, securities as to which no 

SEC v. Christopher A. Novinger, et al. 
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registration statement was in effect; (ii) for the purpose of sale or delivery after sale, carried or 

caused to be carried through the mails or in interstate commerce, by any means or instruments of 

transportation, securities as to which no registration statement was in effect; or (iii) made use of 

any means or instruments of transportation or communication in interstate commerce or of the 

mails to offer to sell, through the use or medium of written contracts, offering documents, or 

otherwise, securities as to which no registration statement had been filed.. 

78. By engaging in this conduct, Defendants Novinger, Speers, and Novers have 

violated and, unless enjoined, will continue to violate Sections 5(a) and 5(c) of the Securities Act 

[15 U.S.C. §§ 77e(a) and 77e(c)]. 

PRAYER FOR RELIEF 

For these reasons, the Commission respectfully requests that this Court enter a final 

judgment: 

a. permanently enjoining Christopher A. Novinger, Brady J. Speers, and NFS 
Group, LLC d/b/a Novers Financial a/k/a Safe Retirement Experts from violating 
Sections 5(a), 5(c), and 17(a) of the Securities Act and Sections 10(b) and 15(a) of 
the Exchange Act and Rule 10b-5 thereunder; 

b. permanently enjoining ICAN Investment Group, LLC and Speers Financial 
Group, LLC from violating Section 15(a) of the Exchange Act; 

c. ordering Christopher A. Novinger, Brady J. Speers, NFS Group, LLC d/b/a 
Novers Financial a/k/a Safe Retirement Experts, ICAN Investments, LLC, and 
Speers Financial Group, LLC to disgorge ill-gotten gains and benefits obtained or 
to which they were not otherwise entitled, as a result of the violations alleged 
herein, plus prejudgment interest on that amount; 

d. ordering Christopher A. Novinger and Brady J. Speers to pay civil penalties under 
Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of 
the Exchange Act [15 U.S.C. § 78u(d)(3)]; and 

e. granting such additional relief as the Court deems just, appropriate, and equitable. 

SEC v. Christopher A. Novinger, et al. 
COMPLAINT Page 26 



DATED: May 11,2015

Respectfully submitted,

)AVID FRASER

Lead Attorney
Texas Bar No. 24012654

SECURITIES AND EXCHANGE COMMISSION

Burnett Plaza, Suite 1900
801 Cherry St., Unit #18
Fort Worth, TX 76102-6882
(817)978-1409
(817) 978-4927 (fax)
[email protected]

ATTORNEY FOR PLAINTIFF

SECURITIES AND EXCHANGE COMMISSION

SEC v. Christopher A. Novinger, et a\.
COMPLAINT Page 27

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