Court upholds $3 million arbitration award against Spire Securities

Court upholds $3 million arbitration award against Spire Securities
Finra had ruled that the firm failed to supervise a broker who operated a Ponzi scheme.
NOV 06, 2019
A New York federal court has upheld a $3 million arbitration award holding Spire Securities responsible for failing to supervise one of its brokers who operated a Ponzi scheme. The broker, Patrick Evans Churchville, sold investments through ClearPath Wealth Management, a Rhode Island registered investment adviser he ran, to the 23 claimants in the arbitration case. Those claimants were a subset of the victims of Mr. Churchville's $21-million Ponzi scheme. In June, a Financial Industry Regulatory Authority Inc. arbitration panel awarded the claimants $3 million of the $21 million in compensatory damages they were seeking. [Recommended video: Personalization and custom communications are key to the evolving client experience]​ The arbitration case was the first regulatory event for Spire Securities, a subsidiary of McLean, Va.-based Spire Investment Partners. At the time of the arbitration, the firm said that none of the claimants had lost money while at Spire and that no regulator had investigated Spire over Mr. Churchville's Ponzi scheme, which occurred at an advisory firm that was separate from Spire.

Latest News

Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York
Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York

Elsewhere in Utah, Raymond James also welcomed another experienced advisor from D.A. Davidson.

UBS loses arbitration battle in fiduciary fight over foundation funds
UBS loses arbitration battle in fiduciary fight over foundation funds

A federal appeals court says UBS can’t force arbitration in a trustee lawsuit over alleged fiduciary breaches involving millions in charitable assets.

RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee
RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee

NorthRock Partners' second deal of 2025 expands its Bay Area presence with a planning practice for tech professionals, entrepreneurs, and business owners.

Three easy ways to boost your firm’s impact this summer
Three easy ways to boost your firm’s impact this summer

Rather than big projects and ambitious revamps, a few small but consequential tweaks could make all the difference while still leaving time for well-deserved days off.

Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite
Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite

Hadley, whose time at Goldman included working with newly appointed CEO Larry Restieri, will lead the firm's efforts at advisor engagement, growth initiatives, and practice management support.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.