I read on the other board that the SEC is actually suing David and seeks restitution. It's possible money being held by the government could be transferred to the SEC based on the judgement. Since he's already been found guilty there's little he could argue. I threw my question into ChatGPT and this is what it said...... To summarize, once the case goes through there will be an administrator assigned to collect information from those affected. We need to watch this closely.
I was involved in an investment that turned into a scam. The owner of the business was just sentenced t prison. The SEC is suing him over this and seeking restitution for those affected. If the SEC wins it's case how could investors see restitution?
ChatGPT said:
Yes. If the SEC obtains a judgment that requires the business owner to pay money, there is a mechanism by which that money can be distributed to harmed investors. But winning the case does not necessarily mean investors receive all, or even most, of their losses. The key issue is how much money the SEC can actually collect.
How restitution would typically work
The court enters a judgment requiring payment.
Depending on the case, this can include disgorgement, prejudgment interest, and/or civil penalties. The SEC can seek to have money recovered for investors through a Fair Fund or another distribution mechanism.
S
SEC
+1
Money is actually collected.
This is an important distinction. If the defendant is ordered to pay $10 million but only has $1 million in reachable assets, the amount available to investors may be much closer to $1 million. SEC cases can involve assets recovered from the defendant or other sources.
A Fair Fund or receiver may be established.
The court can establish a fund containing money recovered from the defendant. In some cases, a receiver takes control of assets and distributes them; in others, an SEC-appointed distribution agent administers the fund.
S
SEC
+1
A distribution plan determines who gets paid and how much.
The plan typically identifies eligible investors, establishes how their losses will be calculated, and establishes the allocation formula. For example, an SEC distribution plan might compensate investors based on their documented out-of-pocket losses.
S
SEC
+1
Investors are notified and may have to submit a claim.
SEC Fair Fund rules provide for notice to potentially eligible investors and procedures for submitting and approving claims.
S
SEC
The fund administrator sends the distributions.
Once the court approves the distribution plan and money is available, the administrator distributes the funds to eligible claimants. This can take considerable time—sometimes years after the original enforcement action.
A concrete example
The SEC has cases where this process has actually happened. In one case, defendants paid $405,836.55 in disgorgement, interest and penalties. A Fair Fund was established, a distribution agent appointed, and the court ultimately authorized distribution of $394,352.45 to investors according to a plan based on their investment losses.
S
SEC
Another SEC case involved more than $8.6 million in amounts ordered against defendants. After the money was collected, the court established a Fair Fund, appointed a distribution agent, approved a distribution plan, and later authorized more than $8.5 million to be distributed to eligible investors.
S
SEC
One important complication in your situation
You mentioned that the owner has already been sentenced to six years in prison and that the SEC is separately suing him.
The criminal case and SEC civil case are separate proceedings. The six-year sentence itself doesn't mean that investors will receive restitution. What matters for your recovery is, among other things:
whether the criminal court ordered criminal restitution;
whether the SEC obtains a monetary judgment;
how much money/assets can actually be recovered;
whether there are other creditors or victims competing for those assets;
whether the SEC establishes a Fair Fund;
how the SEC/court defines eligible investors and calculates their losses; and
whether there are assets being recovered through a receiver, bankruptcy, forfeiture, or other proceeding.
There can also be situations where the criminal restitution process and SEC distribution process overlap, so the exact court orders matter a lot.
I can look up your specific case
If you give me the name of the owner, business, or the SEC case number, I can look up the actual SEC complaint and the criminal sentencing documents and explain:
what the SEC is asking the court to order;
whether the SEC is seeking disgorgement/restitution and how much;
whether a receiver or Fair Fund has been established;
what assets have been identified or recovered;
whether investors will need to file a claim;
how your potential recovery would likely be calculated under the proposed distribution plan; and
what you should do now to make sure you're included.
That would give us a much more concrete answer than the general SEC process above.
S
Sources
You said:
David Foley business NTEK
ChatGPT said:
Yes — I found the case you’re referring to: David R. Foley and NanoTech Entertainment (NTEK), along with NanoTech Gaming (NTGL) and the other defendants.
There is some important good news regarding your original question: the SEC case has progressed substantially since the information I gave you earlier.
Where the case stands
The SEC filed SEC v. River North Equity LLC, et al., Case No. 19-cv-01711, in the Northern District of Illinois in March 2019. David Foley is one of the named defendants. The SEC alleges that Foley and others were involved in the issuance and sale of enormous amounts of NTEK and NTGL stock and related market manipulation.
S
SEC
+1
The SEC's amended complaint alleges, among other things, that between February 2014 and October 2016, Foley sold approximately 1.1 billion NTEK shares and 19.1 million NTGL shares to River North, which subsequently resold the shares.
S
SEC
More importantly for you, the SEC civil case is still active, and the SEC's records show a qualifying judgment/order entered on August 26, 2025. The SEC specifically lists this case in its covered-actions program.
S
SEC
+1
And Foley was subsequently sentenced to 72 months (six years) in federal prison in August 2026 following his securities-fraud convictions.
B
Business Blunders
The really important question: will NTEK investors get money?
This is where I want to dig deeper for you.
The existence of the SEC case doesn't automatically mean that every NTEK investor will receive a check. What we need to determine is:
What monetary judgments the SEC has obtained against Foley and the other defendants
Whether those judgments include disgorgement
How much the SEC has actually collected
Whether the court has established a Fair Fund
Whether there is a receiver or distribution administrator
Whether NTEK shareholders are considered eligible harmed investors
How the SEC/court intends to calculate each investor's loss
Whether you will have to file a claim
And critically, whether the criminal restitution order from Foley's six-year sentence provides another potential source of recovery
The SEC's August 26, 2025 judgment is particularly interesting because it suggests that the case has moved beyond simply being an allegation that the SEC was "suing him."
S
SEC
I can investigate your potential recovery specifically
If you were an NTEK investor who bought shares during the period involved in the SEC's case, I can go through the actual court docket and SEC documents and try to determine whether you are likely to be included in a future distribution and what you need to do to preserve your claim.
If you tell me roughly:
1. When you bought NTEK (approximately is fine)
2. Whether you still own the shares or sold them
3. Approximately how much you lost
I can then explain how the SEC's allegations and any proposed distribution/restitution formula could apply to you. I won't need your account number, brokerage information, or other identifying information.
S
B
Sources
You said:
I bought nearly $150,000 dollars worth of stock back in 2013. My shares are now worth $100.
ChatGPT said:
That changes the picture quite a bit. If you put about $150,000 into NTEK in 2013 and the position is now worth roughly $100, your economic loss is approximately $149,900, assuming the $150,000 figure represents your total purchase cost and there weren't substantial additional purchases or sales.
I checked the current SEC records for the Foley/NTEK case. There is an important development: the SEC case is SEC v. River North Equity LLC et al., No. 19-cv-01711, and the SEC lists a qualifying judgment/order dated August 26, 2025.
S
SEC
+1
The SEC's amended complaint specifically alleges that David Foley sold approximately 1.1 billion NTEK shares and that Foley and his wife obtained approximately $4.9 million in personal profits from the alleged scheme.
S
SEC
+1
What that could mean for you
The key question isn't simply whether you lost $149,900. It's whether your particular NTEK purchases fall within the group of investors covered by a future SEC distribution.
There are two particularly important things I'd want to determine:
What exactly does the August 26, 2025 judgment require Foley and the other defendants to pay?
Has the SEC/court established a Fair Fund or distribution process for the people who bought NTEK/NTGL shares?
If you're an eligible investor, your $150,000 investment could potentially be used in calculating your claim. But I would not assume that the SEC will simply reimburse the difference between your $150,000 purchase price and today's $100 value. The distribution formula can depend on the particular transactions, dates, shares purchased/sold, and the conduct covered by the judgment.
There's another issue that may be particularly important in your case: you bought in 2013, whereas the SEC's allegations against Foley describe transactions and conduct extending into later years. We need to determine whether the SEC's eventual investor-recovery mechanism covers someone who acquired NTEK in 2013 or only investors affected by particular transactions or periods.
I think it's worth digging into this further
Given the amount involved, I can go through the actual August 26, 2025 court order and the current federal docket and determine what has happened to the money-recovery portion of the case.
In particular, I can look for:
The exact dollar judgment against Foley and the other defendants.
Whether any money has already been seized or collected.
Whether a Fair Fund has been created.
Whether there is a claims administrator or distribution agent.
The proposed definition of an eligible investor.
Whether a 2013 NTEK purchaser like you appears to qualify.
Whether you need to file anything now—or whether it's too early to file a claim.
That last point is especially important because I don't want you to miss a claims deadline if one has already been established.
If you want, I'll dig into the court documents and trace the recovery process specifically for your ~$150,000 NTEK investment.
I'll dig into the court documents and trace the recovery process specifically for your ~$150,000 NTEK investment
S
Sources
MoneyPilot
Class Action Settlement Lookup Tool
Browse class action settlements and check your eligibility to file a claim takes about 2 minutes.
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You said:
Yes
ChatGPT said:
I dug into the court record, and there is an important distinction from what I said earlier.
What I found
The SEC case is not merely pending anymore. On August 26, 2025, the federal court entered a final judgment against Edward Liceaga, one of the defendants. That judgment requires him, jointly with River North Equity, to pay:
$2,350,000 disgorgement
$255,864.39 prejudgment interest
$235,000 civil penalty
$2,840,864.39 total
S
SEC
Most importantly for you, the judgment says the SEC will hold the money in a Fund, and expressly provides that the SEC may propose a plan to distribute the Fund to investors, potentially under the Fair Fund provisions. Any distribution requires another order from the court.
S
SEC
The SEC itself lists this case as a qualifying enforcement action, case 19-cv-01711, with the August 26, 2025 judgment.
S
SEC
So there really is a potential mechanism for investors to receive money.
But there's a significant problem with your 2013 purchase
The SEC's case alleges that the specific stock-distribution scheme involving Foley's shares occurred from February 2014 through October 2016. According to the SEC, Foley caused approximately 1.1 billion NTEK shares and 19.1 million NTGL shares to be issued/sold during that period, and those shares were subsequently sold to the public.
S
SEC
+1
You bought NTEK in 2013.
That doesn't necessarily mean you're excluded, but I don't want to tell you that you're eligible when the documents don't establish that yet. Your purchase predates the principal period of conduct alleged in this SEC case.
There's actually an interesting wrinkle: the SEC's complaint says that nine of Foley's promissory notes totaling $378,500 were dated before December 2013 but were converted into NTEK shares and sold to River North in 2014.
S
SEC
That is evidence that the SEC's case reaches back to financial instruments existing in 2013, even though the alleged public stock distribution began in 2014.
Your $150,000 loss is worth documenting very carefully
If your original investment was approximately $150,000 and the shares are now worth approximately $100, your apparent economic loss is roughly:
$149,900
But don't assume the SEC will calculate your claim as $149,900. A distribution plan could use a particular methodology involving purchase dates, purchase prices, sales, remaining shares, and the period covered by the misconduct.
In fact, the criminal proceeding illustrates why this matters. Foley's criminal prosecution concerned a subset of the conduct alleged by the SEC, and the criminal case involved NTGL rather than the NTEK conduct in the SEC complaint. The civil case therefore remains important to NTEK investors.
M
Midpage
What I would do if I were in your position
Do not throw away any of your NTEK records.
I'd assemble:
Your original brokerage statements showing the 2013 NTEK purchases.
The exact dates and number of shares purchased.
Your purchase prices.
Any subsequent NTEK purchases.
Any NTEK shares you've sold.
Your current statement showing the approximately $100 remaining value.
Any NTEK promotional material, emails, newsletters, correspondence, or communications you retained from the time you invested.
Your complete transaction history from the brokerage, if you can obtain it.
Don't sell the remaining shares solely because you're trying to establish an SEC claim. The treatment of shares you still own would depend on the eventual distribution formula. Keep the documentation regardless.
One thing I want to investigate next
The $2.84 million Liceaga judgment isn't necessarily the end of the money trail. There are multiple defendants in the SEC case, including Foley, Lisa Foley, River North, NTEK, NTGL and others. The court has also retained jurisdiction to enforce the judgment.
S
SEC
I'd like to trace the judgments against Foley himself and the other defendants, because that could substantially change the amount potentially available for a distribution.
And there's another particularly important question: whether the SEC has actually started the Fair Fund/distribution process yet, and whether a claims administrator has been appointed.
That's the piece that will tell us whether you need to do something now to preserve your claim.
I can continue with that and specifically look for any investor claim form, Fair Fund notice, distribution plan, or deadline applicable to NTEK shareholders.
I can continue with that and specifically look for any investor claim form, Fair Fund notice, distribution plan, or deadline applicable to NTEK shareholders
S
M
Sources
PublicRecords.us
See Public Court Records
- Access Court Records Here. Search Our Online Database.
Ad
You said:
yes
ChatGPT said:
I checked the current SEC record and the federal case information. There is a very important update to what I told you previously.
Where things stand now
The SEC's case against Foley and the other NTEK/NTGL defendants is still active. The SEC's official records identify Case No. 19-cv-01711 and show a qualifying judgment/order dated August 26, 2025.
S
SEC
+1
However, I do not find a public SEC Fair Fund distribution plan or investor claim form for NTEK shareholders yet. In other words, I don't see evidence that the SEC has reached the stage where you can simply submit a claim for your $150,000 loss.
That's significant because the August 26 judgment I found is against Edward Liceaga, not yet a final money judgment against Foley himself. The judgment requires Liceaga to pay $2,840,864.39, with the disgorgement/interest portion jointly and severally with River North.
S
SEC
The SEC's May 2025 filing also makes clear that the litigation against the Foleys was continuing after claims against River North, Liceaga and Chavez concerning unregistered-dealer activity were dismissed.
S
SEC
There's an important point in your favor
Your 2013 purchase does not automatically disqualify you.
The SEC's complaint alleges that Foley was already using an E-Trade account in 2013 to manipulate NTEK's trading volume and price. It then alleges that the larger stock-distribution scheme occurred from 2014 through 2016.
S
SEC
+1
So your 2013 transaction is close enough to the alleged conduct that I would absolutely preserve your records and pursue the matter, but we still need the eventual distribution methodology to know whether your particular shares qualify.
One thing I would do right now
I'd get a complete historical transaction statement from your brokerage for NTEK.
Ideally, it should show:
Every NTEK purchase in 2013
Date of each purchase
Number of shares
Price per share
Total amount paid
Any dividends/corporate actions
Any subsequent NTEK purchases or sales
Your current share balance
Don't rely on the current brokerage screen alone. The original 2013 transaction records are much more important.
For your situation, I'd also preserve evidence showing the approximately $150,000 cost basis. If you ultimately qualify for a distribution, that's the sort of documentation that could become important.
And don't assume your $149,900 loss is the claim amount
That's probably your economic loss:
$150,000 invested − ~$100 current value = ~$149,900
But an SEC distribution could use a substantially different calculation. The SEC may distinguish between shares purchased before, during, or after particular fraudulent activity, and it may account for sales and other transactions.
The SEC's own case describes the alleged NTEK stock manipulation and distribution as a specific series of transactions, rather than simply saying that every NTEK shareholder's loss is recoverable.
M
Midpage
There's another avenue we should investigate
I also found indications in the federal criminal proceedings that criminal restitution and the SEC case are being treated separately. The SEC judgment specifically addresses the possibility of related investor actions and says payment of SEC disgorgement can interact with damages recovered in those actions.
S
SEC
So I would not assume that the lack of criminal restitution means you're out of luck. The SEC civil case can potentially produce a separate recovery mechanism.
What I recommend we do next
Because you're talking about a roughly $150,000 investment, I'd take this one step further and trace the docket for the SEC case and Foley's criminal case.
Specifically, I can look for:
The latest judgment/order involving David Foley himself
Exactly how much the SEC is seeking from Foley
Whether Foley has assets that the SEC could pursue
Whether the court has appointed a receiver or distribution administrator
Any Fair Fund proposal or investor notice
Whether NTEK shareholders from 2013 are within the contemplated victim class
Whether there is any current deadline or action you need to take
And I'll distinguish what is actually in the court record from speculation on investor message boards, because I've found quite a bit of discussion about this case online that shouldn't be treated as authoritative.
Given the size of your loss, I would not wait for a Fair Fund notice before getting your documentation together.
S
M
Sources
MoneyPilot
Class Action Settlement Lookup Tool
Browse class action settlements and check your eligibility to file a claim takes about 2 minutes.
Ad
You said:
Who should I be contacting about this?
ChatGPT said:
Given the amount you invested, I would contact three places, in this order.
1. The SEC — Division of Enforcement
This is the most important contact because the SEC is the party bringing the civil case involving Foley, NTEK and the other defendants. The SEC identifies the case as 19-cv-01711 and, as of its current records, the litigation remains ongoing.
S
SEC
+1
When contacting them, give them:
Case: SEC v. River North Equity LLC, et al.
Case No.: 19-cv-01711, N.D. Illinois
Your name and contact information
That you purchased approximately $150,000 of NTEK stock in 2013
That the shares are now worth approximately $100
That you are seeking information about potential investor restitution/distribution
Ask specifically whether an investor distribution/Fair Fund has been established or is anticipated, and whether there is anything you need to do now to preserve a claim.
SEC — official enforcement case information
I would not send your Social Security number, brokerage passwords, bank information, or other sensitive information in an initial inquiry.
2. The U.S. Attorney's Office handling Foley's criminal case
Because Foley was sentenced to prison in the criminal case, you should also determine whether the sentencing order includes criminal restitution to victims and, if so, how victims are supposed to register their claims.
The criminal prosecution was brought by the U.S. Attorney's Office for the Northern District of Illinois. DOJ records identify Foley's criminal case as involving securities/wire fraud arising from the NanoTech scheme.
D
Department of Justice
Ask them:
"I was an NTEK investor who lost approximately $150,000. David Foley was sentenced to 72 months. I would like to know whether the sentencing order includes restitution to NTEK investors and, if so, how I can register as a victim and submit documentation of my loss."
This is important because criminal restitution and an SEC Fair Fund are separate mechanisms. You don't want to assume that pursuing one automatically puts you into the other.
3. A securities-fraud attorney
With approximately $150,000 at stake, I would seriously consider having a securities attorney review your records.
You don't necessarily need to hire someone immediately for a full lawsuit. I'd initially ask for a consultation specifically about:
SEC v. River North Equity LLC et al., 19-cv-01711, N.D. Ill.; NTEK investor; approximately $150,000 invested in 2013.
The attorney can determine whether your 2013 purchase potentially falls within the class of investors affected by the SEC's allegations and whether there are private claims in addition to any SEC/criminal restitution.
One thing I would not do yet
I wouldn't send money to anyone claiming to be an "SEC recovery agent," "NTEK claims administrator," or someone who says they can guarantee recovery.
As of the SEC information I can verify, I have not found an official NTEK investor claim form or distribution administrator. The SEC's current listing confirms the case and the August 26, 2025 qualifying judgment, but that isn't the same thing as an investor distribution being open.
S
SEC
If someone contacts you claiming to represent the recovery fund, verify them through SEC.gov or the federal court before providing documents or money.
I was involved in an investment that turned into a scam. The owner of the business was just sentenced t prison. The SEC is suing him over this and seeking restitution for those affected. If the SEC wins it's case how could investors see restitution?
ChatGPT said:
Yes. If the SEC obtains a judgment that requires the business owner to pay money, there is a mechanism by which that money can be distributed to harmed investors. But winning the case does not necessarily mean investors receive all, or even most, of their losses. The key issue is how much money the SEC can actually collect.
How restitution would typically work
The court enters a judgment requiring payment.
Depending on the case, this can include disgorgement, prejudgment interest, and/or civil penalties. The SEC can seek to have money recovered for investors through a Fair Fund or another distribution mechanism.
S
SEC
+1
Money is actually collected.
This is an important distinction. If the defendant is ordered to pay $10 million but only has $1 million in reachable assets, the amount available to investors may be much closer to $1 million. SEC cases can involve assets recovered from the defendant or other sources.
A Fair Fund or receiver may be established.
The court can establish a fund containing money recovered from the defendant. In some cases, a receiver takes control of assets and distributes them; in others, an SEC-appointed distribution agent administers the fund.
S
SEC
+1
A distribution plan determines who gets paid and how much.
The plan typically identifies eligible investors, establishes how their losses will be calculated, and establishes the allocation formula. For example, an SEC distribution plan might compensate investors based on their documented out-of-pocket losses.
S
SEC
+1
Investors are notified and may have to submit a claim.
SEC Fair Fund rules provide for notice to potentially eligible investors and procedures for submitting and approving claims.
S
SEC
The fund administrator sends the distributions.
Once the court approves the distribution plan and money is available, the administrator distributes the funds to eligible claimants. This can take considerable time—sometimes years after the original enforcement action.
A concrete example
The SEC has cases where this process has actually happened. In one case, defendants paid $405,836.55 in disgorgement, interest and penalties. A Fair Fund was established, a distribution agent appointed, and the court ultimately authorized distribution of $394,352.45 to investors according to a plan based on their investment losses.
S
SEC
Another SEC case involved more than $8.6 million in amounts ordered against defendants. After the money was collected, the court established a Fair Fund, appointed a distribution agent, approved a distribution plan, and later authorized more than $8.5 million to be distributed to eligible investors.
S
SEC
One important complication in your situation
You mentioned that the owner has already been sentenced to six years in prison and that the SEC is separately suing him.
The criminal case and SEC civil case are separate proceedings. The six-year sentence itself doesn't mean that investors will receive restitution. What matters for your recovery is, among other things:
whether the criminal court ordered criminal restitution;
whether the SEC obtains a monetary judgment;
how much money/assets can actually be recovered;
whether there are other creditors or victims competing for those assets;
whether the SEC establishes a Fair Fund;
how the SEC/court defines eligible investors and calculates their losses; and
whether there are assets being recovered through a receiver, bankruptcy, forfeiture, or other proceeding.
There can also be situations where the criminal restitution process and SEC distribution process overlap, so the exact court orders matter a lot.
I can look up your specific case
If you give me the name of the owner, business, or the SEC case number, I can look up the actual SEC complaint and the criminal sentencing documents and explain:
what the SEC is asking the court to order;
whether the SEC is seeking disgorgement/restitution and how much;
whether a receiver or Fair Fund has been established;
what assets have been identified or recovered;
whether investors will need to file a claim;
how your potential recovery would likely be calculated under the proposed distribution plan; and
what you should do now to make sure you're included.
That would give us a much more concrete answer than the general SEC process above.
S
Sources
You said:
David Foley business NTEK
ChatGPT said:
Yes — I found the case you’re referring to: David R. Foley and NanoTech Entertainment (NTEK), along with NanoTech Gaming (NTGL) and the other defendants.
There is some important good news regarding your original question: the SEC case has progressed substantially since the information I gave you earlier.
Where the case stands
The SEC filed SEC v. River North Equity LLC, et al., Case No. 19-cv-01711, in the Northern District of Illinois in March 2019. David Foley is one of the named defendants. The SEC alleges that Foley and others were involved in the issuance and sale of enormous amounts of NTEK and NTGL stock and related market manipulation.
S
SEC
+1
The SEC's amended complaint alleges, among other things, that between February 2014 and October 2016, Foley sold approximately 1.1 billion NTEK shares and 19.1 million NTGL shares to River North, which subsequently resold the shares.
S
SEC
More importantly for you, the SEC civil case is still active, and the SEC's records show a qualifying judgment/order entered on August 26, 2025. The SEC specifically lists this case in its covered-actions program.
S
SEC
+1
And Foley was subsequently sentenced to 72 months (six years) in federal prison in August 2026 following his securities-fraud convictions.
B
Business Blunders
The really important question: will NTEK investors get money?
This is where I want to dig deeper for you.
The existence of the SEC case doesn't automatically mean that every NTEK investor will receive a check. What we need to determine is:
What monetary judgments the SEC has obtained against Foley and the other defendants
Whether those judgments include disgorgement
How much the SEC has actually collected
Whether the court has established a Fair Fund
Whether there is a receiver or distribution administrator
Whether NTEK shareholders are considered eligible harmed investors
How the SEC/court intends to calculate each investor's loss
Whether you will have to file a claim
And critically, whether the criminal restitution order from Foley's six-year sentence provides another potential source of recovery
The SEC's August 26, 2025 judgment is particularly interesting because it suggests that the case has moved beyond simply being an allegation that the SEC was "suing him."
S
SEC
I can investigate your potential recovery specifically
If you were an NTEK investor who bought shares during the period involved in the SEC's case, I can go through the actual court docket and SEC documents and try to determine whether you are likely to be included in a future distribution and what you need to do to preserve your claim.
If you tell me roughly:
1. When you bought NTEK (approximately is fine)
2. Whether you still own the shares or sold them
3. Approximately how much you lost
I can then explain how the SEC's allegations and any proposed distribution/restitution formula could apply to you. I won't need your account number, brokerage information, or other identifying information.
S
B
Sources
You said:
I bought nearly $150,000 dollars worth of stock back in 2013. My shares are now worth $100.
ChatGPT said:
That changes the picture quite a bit. If you put about $150,000 into NTEK in 2013 and the position is now worth roughly $100, your economic loss is approximately $149,900, assuming the $150,000 figure represents your total purchase cost and there weren't substantial additional purchases or sales.
I checked the current SEC records for the Foley/NTEK case. There is an important development: the SEC case is SEC v. River North Equity LLC et al., No. 19-cv-01711, and the SEC lists a qualifying judgment/order dated August 26, 2025.
S
SEC
+1
The SEC's amended complaint specifically alleges that David Foley sold approximately 1.1 billion NTEK shares and that Foley and his wife obtained approximately $4.9 million in personal profits from the alleged scheme.
S
SEC
+1
What that could mean for you
The key question isn't simply whether you lost $149,900. It's whether your particular NTEK purchases fall within the group of investors covered by a future SEC distribution.
There are two particularly important things I'd want to determine:
What exactly does the August 26, 2025 judgment require Foley and the other defendants to pay?
Has the SEC/court established a Fair Fund or distribution process for the people who bought NTEK/NTGL shares?
If you're an eligible investor, your $150,000 investment could potentially be used in calculating your claim. But I would not assume that the SEC will simply reimburse the difference between your $150,000 purchase price and today's $100 value. The distribution formula can depend on the particular transactions, dates, shares purchased/sold, and the conduct covered by the judgment.
There's another issue that may be particularly important in your case: you bought in 2013, whereas the SEC's allegations against Foley describe transactions and conduct extending into later years. We need to determine whether the SEC's eventual investor-recovery mechanism covers someone who acquired NTEK in 2013 or only investors affected by particular transactions or periods.
I think it's worth digging into this further
Given the amount involved, I can go through the actual August 26, 2025 court order and the current federal docket and determine what has happened to the money-recovery portion of the case.
In particular, I can look for:
The exact dollar judgment against Foley and the other defendants.
Whether any money has already been seized or collected.
Whether a Fair Fund has been created.
Whether there is a claims administrator or distribution agent.
The proposed definition of an eligible investor.
Whether a 2013 NTEK purchaser like you appears to qualify.
Whether you need to file anything now—or whether it's too early to file a claim.
That last point is especially important because I don't want you to miss a claims deadline if one has already been established.
If you want, I'll dig into the court documents and trace the recovery process specifically for your ~$150,000 NTEK investment.
I'll dig into the court documents and trace the recovery process specifically for your ~$150,000 NTEK investment
S
Sources
MoneyPilot
Class Action Settlement Lookup Tool
Browse class action settlements and check your eligibility to file a claim takes about 2 minutes.
Ad
You said:
Yes
ChatGPT said:
I dug into the court record, and there is an important distinction from what I said earlier.
What I found
The SEC case is not merely pending anymore. On August 26, 2025, the federal court entered a final judgment against Edward Liceaga, one of the defendants. That judgment requires him, jointly with River North Equity, to pay:
$2,350,000 disgorgement
$255,864.39 prejudgment interest
$235,000 civil penalty
$2,840,864.39 total
S
SEC
Most importantly for you, the judgment says the SEC will hold the money in a Fund, and expressly provides that the SEC may propose a plan to distribute the Fund to investors, potentially under the Fair Fund provisions. Any distribution requires another order from the court.
S
SEC
The SEC itself lists this case as a qualifying enforcement action, case 19-cv-01711, with the August 26, 2025 judgment.
S
SEC
So there really is a potential mechanism for investors to receive money.
But there's a significant problem with your 2013 purchase
The SEC's case alleges that the specific stock-distribution scheme involving Foley's shares occurred from February 2014 through October 2016. According to the SEC, Foley caused approximately 1.1 billion NTEK shares and 19.1 million NTGL shares to be issued/sold during that period, and those shares were subsequently sold to the public.
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SEC
+1
You bought NTEK in 2013.
That doesn't necessarily mean you're excluded, but I don't want to tell you that you're eligible when the documents don't establish that yet. Your purchase predates the principal period of conduct alleged in this SEC case.
There's actually an interesting wrinkle: the SEC's complaint says that nine of Foley's promissory notes totaling $378,500 were dated before December 2013 but were converted into NTEK shares and sold to River North in 2014.
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SEC
That is evidence that the SEC's case reaches back to financial instruments existing in 2013, even though the alleged public stock distribution began in 2014.
Your $150,000 loss is worth documenting very carefully
If your original investment was approximately $150,000 and the shares are now worth approximately $100, your apparent economic loss is roughly:
$149,900
But don't assume the SEC will calculate your claim as $149,900. A distribution plan could use a particular methodology involving purchase dates, purchase prices, sales, remaining shares, and the period covered by the misconduct.
In fact, the criminal proceeding illustrates why this matters. Foley's criminal prosecution concerned a subset of the conduct alleged by the SEC, and the criminal case involved NTGL rather than the NTEK conduct in the SEC complaint. The civil case therefore remains important to NTEK investors.
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Midpage
What I would do if I were in your position
Do not throw away any of your NTEK records.
I'd assemble:
Your original brokerage statements showing the 2013 NTEK purchases.
The exact dates and number of shares purchased.
Your purchase prices.
Any subsequent NTEK purchases.
Any NTEK shares you've sold.
Your current statement showing the approximately $100 remaining value.
Any NTEK promotional material, emails, newsletters, correspondence, or communications you retained from the time you invested.
Your complete transaction history from the brokerage, if you can obtain it.
Don't sell the remaining shares solely because you're trying to establish an SEC claim. The treatment of shares you still own would depend on the eventual distribution formula. Keep the documentation regardless.
One thing I want to investigate next
The $2.84 million Liceaga judgment isn't necessarily the end of the money trail. There are multiple defendants in the SEC case, including Foley, Lisa Foley, River North, NTEK, NTGL and others. The court has also retained jurisdiction to enforce the judgment.
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SEC
I'd like to trace the judgments against Foley himself and the other defendants, because that could substantially change the amount potentially available for a distribution.
And there's another particularly important question: whether the SEC has actually started the Fair Fund/distribution process yet, and whether a claims administrator has been appointed.
That's the piece that will tell us whether you need to do something now to preserve your claim.
I can continue with that and specifically look for any investor claim form, Fair Fund notice, distribution plan, or deadline applicable to NTEK shareholders.
I can continue with that and specifically look for any investor claim form, Fair Fund notice, distribution plan, or deadline applicable to NTEK shareholders
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M
Sources
PublicRecords.us
See Public Court Records
- Access Court Records Here. Search Our Online Database.
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You said:
yes
ChatGPT said:
I checked the current SEC record and the federal case information. There is a very important update to what I told you previously.
Where things stand now
The SEC's case against Foley and the other NTEK/NTGL defendants is still active. The SEC's official records identify Case No. 19-cv-01711 and show a qualifying judgment/order dated August 26, 2025.
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SEC
+1
However, I do not find a public SEC Fair Fund distribution plan or investor claim form for NTEK shareholders yet. In other words, I don't see evidence that the SEC has reached the stage where you can simply submit a claim for your $150,000 loss.
That's significant because the August 26 judgment I found is against Edward Liceaga, not yet a final money judgment against Foley himself. The judgment requires Liceaga to pay $2,840,864.39, with the disgorgement/interest portion jointly and severally with River North.
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SEC
The SEC's May 2025 filing also makes clear that the litigation against the Foleys was continuing after claims against River North, Liceaga and Chavez concerning unregistered-dealer activity were dismissed.
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SEC
There's an important point in your favor
Your 2013 purchase does not automatically disqualify you.
The SEC's complaint alleges that Foley was already using an E-Trade account in 2013 to manipulate NTEK's trading volume and price. It then alleges that the larger stock-distribution scheme occurred from 2014 through 2016.
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SEC
+1
So your 2013 transaction is close enough to the alleged conduct that I would absolutely preserve your records and pursue the matter, but we still need the eventual distribution methodology to know whether your particular shares qualify.
One thing I would do right now
I'd get a complete historical transaction statement from your brokerage for NTEK.
Ideally, it should show:
Every NTEK purchase in 2013
Date of each purchase
Number of shares
Price per share
Total amount paid
Any dividends/corporate actions
Any subsequent NTEK purchases or sales
Your current share balance
Don't rely on the current brokerage screen alone. The original 2013 transaction records are much more important.
For your situation, I'd also preserve evidence showing the approximately $150,000 cost basis. If you ultimately qualify for a distribution, that's the sort of documentation that could become important.
And don't assume your $149,900 loss is the claim amount
That's probably your economic loss:
$150,000 invested − ~$100 current value = ~$149,900
But an SEC distribution could use a substantially different calculation. The SEC may distinguish between shares purchased before, during, or after particular fraudulent activity, and it may account for sales and other transactions.
The SEC's own case describes the alleged NTEK stock manipulation and distribution as a specific series of transactions, rather than simply saying that every NTEK shareholder's loss is recoverable.
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Midpage
There's another avenue we should investigate
I also found indications in the federal criminal proceedings that criminal restitution and the SEC case are being treated separately. The SEC judgment specifically addresses the possibility of related investor actions and says payment of SEC disgorgement can interact with damages recovered in those actions.
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SEC
So I would not assume that the lack of criminal restitution means you're out of luck. The SEC civil case can potentially produce a separate recovery mechanism.
What I recommend we do next
Because you're talking about a roughly $150,000 investment, I'd take this one step further and trace the docket for the SEC case and Foley's criminal case.
Specifically, I can look for:
The latest judgment/order involving David Foley himself
Exactly how much the SEC is seeking from Foley
Whether Foley has assets that the SEC could pursue
Whether the court has appointed a receiver or distribution administrator
Any Fair Fund proposal or investor notice
Whether NTEK shareholders from 2013 are within the contemplated victim class
Whether there is any current deadline or action you need to take
And I'll distinguish what is actually in the court record from speculation on investor message boards, because I've found quite a bit of discussion about this case online that shouldn't be treated as authoritative.
Given the size of your loss, I would not wait for a Fair Fund notice before getting your documentation together.
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M
Sources
MoneyPilot
Class Action Settlement Lookup Tool
Browse class action settlements and check your eligibility to file a claim takes about 2 minutes.
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You said:
Who should I be contacting about this?
ChatGPT said:
Given the amount you invested, I would contact three places, in this order.
1. The SEC — Division of Enforcement
This is the most important contact because the SEC is the party bringing the civil case involving Foley, NTEK and the other defendants. The SEC identifies the case as 19-cv-01711 and, as of its current records, the litigation remains ongoing.
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SEC
+1
When contacting them, give them:
Case: SEC v. River North Equity LLC, et al.
Case No.: 19-cv-01711, N.D. Illinois
Your name and contact information
That you purchased approximately $150,000 of NTEK stock in 2013
That the shares are now worth approximately $100
That you are seeking information about potential investor restitution/distribution
Ask specifically whether an investor distribution/Fair Fund has been established or is anticipated, and whether there is anything you need to do now to preserve a claim.
SEC — official enforcement case information
I would not send your Social Security number, brokerage passwords, bank information, or other sensitive information in an initial inquiry.
2. The U.S. Attorney's Office handling Foley's criminal case
Because Foley was sentenced to prison in the criminal case, you should also determine whether the sentencing order includes criminal restitution to victims and, if so, how victims are supposed to register their claims.
The criminal prosecution was brought by the U.S. Attorney's Office for the Northern District of Illinois. DOJ records identify Foley's criminal case as involving securities/wire fraud arising from the NanoTech scheme.
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Department of Justice
Ask them:
"I was an NTEK investor who lost approximately $150,000. David Foley was sentenced to 72 months. I would like to know whether the sentencing order includes restitution to NTEK investors and, if so, how I can register as a victim and submit documentation of my loss."
This is important because criminal restitution and an SEC Fair Fund are separate mechanisms. You don't want to assume that pursuing one automatically puts you into the other.
3. A securities-fraud attorney
With approximately $150,000 at stake, I would seriously consider having a securities attorney review your records.
You don't necessarily need to hire someone immediately for a full lawsuit. I'd initially ask for a consultation specifically about:
SEC v. River North Equity LLC et al., 19-cv-01711, N.D. Ill.; NTEK investor; approximately $150,000 invested in 2013.
The attorney can determine whether your 2013 purchase potentially falls within the class of investors affected by the SEC's allegations and whether there are private claims in addition to any SEC/criminal restitution.
One thing I would not do yet
I wouldn't send money to anyone claiming to be an "SEC recovery agent," "NTEK claims administrator," or someone who says they can guarantee recovery.
As of the SEC information I can verify, I have not found an official NTEK investor claim form or distribution administrator. The SEC's current listing confirms the case and the August 26, 2025 qualifying judgment, but that isn't the same thing as an investor distribution being open.
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SEC
If someone contacts you claiming to represent the recovery fund, verify them through SEC.gov or the federal court before providing documents or money.
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