California Financial Advisor Christopher Dougherty Charged with Running $7 Million Ponzi Scheme
Posted on Wednesday, May 29th, 2019 at 8:04 pm
Former Sagepoint Financial, Inc. financial advisor Christopher Dougherty (CRD# 2974523) was charged by the Securities and Exchange Commission (SEC) with running a $7 million Ponzi scheme. Dougherty was registered with Sagepoint Financial, Inc. in San Diego, California from 2005 to 2012.
In April 2019, the SEC charged Dougherty and several entities he controlled, with operating a Ponzi scheme that defrauded more than 50 of his investment advisory clients out of $7 million. The San Diego District Attorney’s Office also has pending charges against Dougherty.
According to the SEC, Dougherty provided investment advice to school district employees, hospital employees, veterans, and neighbors, most of whom were unsophisticated investors and trusted Dougherty completely. The SEC found that, Dougherty had his own California-registered investment advisor, C&D Professional Services, Inc. (dba C&N Wealth Management) (“C&D”), and through C&D, offered clients the opportunity to invest in tax-free ‘private placements’ that purportedly provided quarterly dividends. The complaint alleges that, in reality, there were no private placements. Dougherty was simply running a Ponzi scheme by taking new investor money and using it to pay quarterly dividends to existing investors and his personal expenses. According to the complaint, Dougherty also offered investors the opportunity to invest in his farm – JTA Farm Enterprises, LLC (“JTA Farm”), and his real estate business – JTA Real Estate Holdings, LLC (“JTA Real Estate”), but investor funds in these ventures were commingled with the C&D investments and used as part of the Ponzi scheme fraud as well. Dougherty and his wife filed for personal bankruptcy in October 2018.”
Dougherty has been the subject of one customer complaint from 2019, according to his CRD report:
March 2019. “Customer alleges that variable universal life policy purchased in 2008 was unsuitable.” The customer is seeking $5,000 in damages and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Sagepoint Financial, Inc. and C&N Wealth Management may be liable for investment or other losses suffered by Dougherty’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.