Rhode Island broker Patrick Churchville has been accused by the Securities and exchange Commission of operating a ponzi scheme that cost investors approximately $11 million.
According to the Providence Journal, Churchville is facing numerous charges for the alleged scheme he ran in connection with his ClearPath Wealth Management firm. Some of the allegations included diverting $2.5 million to purchase a home. Alse, he allegedly invested nearly $1 million of client’s money in a fund for his own benefit.
The Providence journal reports that “[i]n a 37-page filing made with the U.S. District Court in Providence, the SEC alleges that Churchville improperly mingled money people put into the private investment funds and covered up a ‘years-long fraudulent scheme’ by making up false account documents. When people questioned the investment methods Churchville employed at ClearPath he diverted money into their accounts to hide shortfalls.”
For example, reports say Churchville raised approximately $2million from new investors for an investment in health-care but instead used most of the money, $1.6million, to cover-up the shortfalls of another investment.
Churchville tried to cover up the shortfalls through a complex series of financial steps, the SEC alleges, and “lulled investors into thinking that at least a portion of their investments were intact, when, in fact, the money was gone.”
In addition to working for the advisory firm ClearPath Wealth Management, Churchville was also a registered broker. According to BrokerCheck, Churchville was registered with Spire Securities from 08/2009 – 02/2011.
If you invested with Churchville while he was a registered broker and would like to discuss your litigation options, please call the securities attorney of The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.