If you were a victim of the Ponzi scheme or other investment fraud of Rhode Island investment adviser Patrick Churchville please call 1-866-817-0201.
Churchville has agreed to plead guilty to criminal charges for orchestrating a $21 million Ponzi scheme, according to a statement from the U.S. Attorney’s Office.
Aside from that scheme, Churchville, 47, also committed investment fraud when he used $2.5 million of investor funds to help purchase his home and failed to pay more than $820,000 in personal federal income taxes, according to the statement.
Churchville, the owner and president of ClearPath Wealth Management, will plead guilty to five counts of wire fraud and one count of tax fraud.
Churchville is also a party in a civil case brought by the Securities and Exchange Commission (“SEC”) in May 2015.
Between 2008 and 2011, Mr. Churchville invested approximately $18 million of client money in JER Receivables, although by June 2010 he had become aware that ClearPath had been defrauded by that company, according to the statement.
Instead of notifying his clients of the losses, Churchville, paid them with money obtained from new investors, misappropriating around $21 million of investor funds in the process, the statement alleges. To help carry out his scheme, he told investors JER Receivables was producing high rates of return, according to the statement.