July 7, 2015 Comments (0) Blog, Securities Fraud

**Update** SEC Files Civil Complaint against Patrick Churchville

(Last Updated On: July 21, 2015)

On June 2, 2015 the federal court in Rhode Island entered an order imposing an asset freeze against the defendants ClearPath Wealth Management, LLC, a private funds investment adviser, its president and owner, Patrick Churchville
According to the SEC’s complaint, ClearPath and Churchville ran a ponzi scheme and used investors’ funds as collateral for loans to make investments for their own benefit and stole $2.5 million of investor funds to purchase Churchville’s waterfront home in Barrington, Rhode Island.

The complaint alleges that Churchville and ClearPath lied to investors about the status, worth, and disposition of those investments.

ClearPath and Churchville consented to the entry of an asset freeze and other preliminary relief. In addition to the asset freeze, the court prohibited ClearPath and Churchville from soliciting, accepting, or depositing any client funds, or from exercising any discretionary authority over clients’ accounts. ClearPath and Churchville were also preliminarily enjoined from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Section 17(a) of the Securities Act of 1933, Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rules 206(4)-2, 206(4)-7, and 206(4)-8 thereunder.
The complaint states that the SEC seeks to require ClearPath and Churchville to pay civil monetary penalties, and for all defendants and relief defendants to return their allegedly ill-gotten gains with interest. The SEC is also seeking permanent injunctions against both ClearPath and Churchville.

If you suffered losses investing in from Patrick Churchville through ClearPath Wealth Management and would like a free consultation with a securities attorney, please call The White Law Group at (312)238-9650.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

 

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Have you suffered investment losses through Patrick Churchville? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

The White Law Group is investigating Churchville’s alleged improper use of investor funds.

The SEC is currently filing a civil complaint. The SEC filing states: “Beginning in December 2010, private fund manager Patrick Churchville, through his firm ClearPath Wealth Management, misappropriated and misused his investors’ cash and assets through a years-long fraudulent scheme involving theft, covered up by false accounting entries, shadow accounts, and misrepresentations.”

Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market.

Broker dealers are also required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

If you suffered losses investing in from Patrick Churchville through ClearPath Wealth Management and would like a free consultation with a securities attorney, please call The White Law Group at (312)238-9650.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

 

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