Former financial investment advisor who ran Ponzi scheme sentenced to state prison

A former Poway financial investment advisor was sentenced Wednesday to 12 years in state prison for running a $7.75 million Ponzi scheme that scammed 49 victims, including 31 seniors, according to the state Department of Insurance.

Christopher Dougherty, 47, pleaded guilty in March to three counts each of securities fraud and grand theft.

Leveraging his personal and professional relationships with clients and longtime friends, Dougherty pitched “private investments” in companies he owned, authorities said. One investment opportunity he put on the table was a 100-acre “organic” cattle ranch in Alpine and a marijuana-growing project on the property.

Instead of using funds he collected to generate legitimate returns, Dougherty shuffled the money around, using the funds to pay “profits” and return money when investors complained. He also used funds for personal expenses, including home remodeling, travel and college tuition, the state Department of Insurance said.

Dougherty met many of his victims as a former investment advisor for school districts in San Diego and Imperial counties. His victims were unaware the Department of Insurance revoked his license in 2013 after he was convicted of embezzling about $84,000 from the local Tecolote Youth Baseball League.

The Ponzi scheme, which ran from 2015 to 2018, collapsed after enough victims began demanding their money and Dougherty was unable to attract new investors or solicit more funds from victims. He filed for bankruptcy in October 2018.

Investors who began receiving bad checks filed complaints with the Sheriff’s Department in 2018, prompting investigations that eventually merged with probes by state and federal authorities.

The large pool of victims was identified during Dougherty’s bankruptcy proceedings. One couple in their 70s lost their $1.2 million savings for retirement, authorities said in April 2019 when Dougherty was charged in connection with the scheme.

Dougherty was arrested in April 2019 and remained in custody while his case was pending in Superior Court.