ClearPath Wealth Management owner and president Patrick Churchville has been sentenced to seven years in prison for bilking investors in a $21M Ponzi scam. He also must pay restitution and perform 2,000 hours of community service.
Churchville also was charged by the Securities and Exchange Commission in 2015 over the scam, which the regulator said cost investors at least $11M in losses. According to the SEC, Churchville and his company used newer investors’ money to pay earlier investors, used investor funds as loan collateral for investments, for paying back the loans, and for investments that would benefit ClearPath. He also stole about $2.5M of investors’ money to buy a waterfront home. Churchville employed misleading accounting tactics and engaged in deceptive actions to hide the fraud.
In 2013, when a lot of ClearPath investors began asking for distributions on their investments, he delayed the scam by lying to them about the investments. Meantime, investors were persuaded that at least part of their investments were still fine even though the funds were gone.
It can be devastating to discover that the investment adviser that you trusted to handled your money purposely intended to deceive and bilk you. At Shepherd Smith Edwards and Kantas LTD LLP, we help the victims of investment adviser fraud in recouping their losses.
Retail investors, high-net worth individual investors, including celebrities, professional athletes, and other renowned public figures, as well as institutional investors have fallen victim to Ponzi scams over the years. There is no shame in losing your money because you were defrauded.
Working with an experienced Ponzi fraud lawyer can increase your chances of maximizing your recovery. A securities claim is not the kind of case that you want to pursue without an experienced investment adviser fraud law firm representing you. Contact Shepherd Smith Edwards and Kantas, LTD LLP today to ask for a free case assessment.
Financial Advisor Sentenced for Operating $21M Ponzi Scheme, Stealing Investors’ Money, Tax Fraud, Justice.Gov, March 16, 2017
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient’s state. The content of this Website contains general information and may not reflect current legal developments, verdicts or settlements. The Firm expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this Website. Read More.