A federal judge sentenced an ex-wirehouse adviser to seven years in prison for orchestrating a $21 million dollar Ponzi scheme which ensnared more than 100 clients, according to the U.S. Attorney's Office for Rhode Island.
Patrick Churchville, 48,
Among other misconduct, he was accused of using about $2.5 million of client funds to purchase a waterfront home for himself in Barrington, Rhode Island, a town on the eastern shore of Narragansett Bay, authorities say.
Chief Judge William Smith issued the punishment on March 16. Earlier this month,
Melissa Loudon is a BenefitsVIP® team lead at Corporate Synergies, bringing extensive experience in employee benefits, health insurance and customer service. Since joining Corporate Synergies in 2009, Melissa has built deep expertise in benefits administration and employee support. In her current role, she helps guide the BenefitsVIP team while assisting employees and clients with benefits-related questions and service needs.
Jennifer Hui is a Senior BenefitsVIP® Representative at Corporate Synergies, where she draws on her extensive experience in employee benefits and customer support to deliver concierge-level service to plan participants. After earning her degree in Risk Management and Finance from Temple University in 1995, Jennifer launched her career at Independence Blue Cross, where she spent over a decade. She joined Corporate Synergies in 2006, where she continues to serve as a dedicated resource for employees and their dependents navigating their benefit programs.
The firm isn't discussing the news reports suggesting it's for sale. Here's how it has built such a close relationship with so many planners over the years.
Churchville was an adviser for 16 years, having worked at Oppenheimer & Co. and Morgan Stanley, before going independent in 2009, according to FINRA BrokerCheck records. His independent firm, based in Providence, Rhode Island, was called ClearPath Wealth Management, according to federal prosecutors.
Starting in 2008, Churchville started investing client funds in a company called JER Receivables, authorities say. He became aware that the investments were no longer producing returns, and he failed to notify his clients of that, according to federal prosecutors.
Authorities say Churchville hid the fact that he had lost millions, instead inducing clients to invest new money, some of which he used to pay previous investors.
In addition the Ponzi scheme, Churchville also failed to report income to the IRS, resulting in a loss of $820,528 to the agency, according to federal prosecutors.
The investigation into Churchville's scheme was conducted by the FBI, IRS Criminal Investigation, U.S. Postal Inspection Service and the United States Attorney’s Office.
Churchville's attorney, Mike Lepizzera, says his client was himself the victim of a Ponzi scheme, and that he only began using investor funds to pay back other clients upon discovering that the original assets were lost.
"In the end, don't get me wrong, it's a significant sentence, but it's a much lighter sentence than the government's original theory of the case," the attorney says.
