Skip to Main Content
Contact Us Search
CA Department of Insurance
CA Department of Insurance
CA Department of Insurance

Poway conman convicted in $6 million Ponzi scheme

News: 2020 Press Release

For Release: March 18, 2020
Media Calls Only: 916-492-3566
Email Inquiries:
Poway conman convicted in $6 million Ponzi scheme
49 victims scammed over a five-year period, 31 victims were seniors

SAN DIEGO, Calif. — Former life insurance agent Christopher Dougherty, 47, pleaded guilty to three counts of securities fraud, three counts of grand theft, and a sentencing enhancement after running a $6 million Ponzi scheme that scammed 49 victims -- 31 of whom were 65 years or older at the time of the fraudulent investments.

Dougherty agreed to a 12-year state prison sentence, and sentencing is set for April 24, 2020. Dougherty has been in custody with a $5 million bail since his arrest in April 2019.

“Dougherty ruthlessly took advantage of his clients’ trust in order to steal their life savings, causing unfathomable harm,” said Insurance Commissioner Ricardo Lara. “Thanks to the great work by Department of Insurance investigators and the San Diego District Attorney's Office, his conviction will bring some level of justice to victims and their families.”

Dougherty offered private investments in various companies he owned. One of the investment opportunities Dougherty pitched was a 100-acre “organic” cattle ranch in Alpine. While the farm was real, it did not actually generate profits for investors. Dougherty also promoted a marijuana growing project on the Alpine property.

Dougherty shuffled money around in classic Ponzi fashion, paying “profits” to investors with funds received from recent investors. In addition, Dougherty used investor funds for personal expenses, including home remodeling, travel, college tuition, and large cash withdrawals. The Ponzi scheme collapsed when investors began to demand their money and Dougherty could not pay it back.

Investigators identified many of the investors when Dougherty filed bankruptcy in federal court in October 2018, but found additional victims when investigators began looking more closely at Dougherty’s financial records. Some of the victims met Dougherty when various San Diego and Imperial County school districts designated him as an investment advisor for employees. Other victims met Dougherty through his current clients. Dougherty leveraged a reservoir of trust he had developed with long-standing clients, convincing them to cash out established, conventional investments and move their money to his fraudulent investments.

This case was investigated by a task force comprised of members from the California Department of Insurance, the California Department of Business Oversight, and the San Diego Sheriff’s Department. The case was prosecuted by Deputy District Attorney Michael Zachry from the San Diego District Attorney’s Office, Insurance Fraud Division.


Media note:

Booking photo

Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

Google Translate