Churchville diverted deposits from new investors to pay prior investors and used their funds to make investments for ClearPath’s own benefit. He also stole $2.5 million from investors to purchase his waterfront home in Barrington, R.I.
“The culpable party who was found in control in the SEC’s case was Churchville and ClearPath. We were never named or even questioned in the SEC case,” Blisk said.
Gana, however, argued that the SEC’s case has no bearing on the arbitration panel’s decision, which was made in a 2-1 vote, or the award. “So what if they weren’t charged by the SEC? An arbitration panel found them responsible. The grounds he mentioned are not grounds for vacature or overturning an arbitration decision. He has no grounds,” Gana said.