Thomas Pipich Jr., 74, a longtime Pittsburgh financial advisor, is headed to federal prison for 27 months after prosecutors said he quietly siphoned millions from an investment client to plug holes in another fund he managed. Along the way, they say, he funneled money through a bogus loan setup that propped up BarTom Investments and paid himself and his wife more than $800,000 in client cash, leaving the victim fund badly drained over several years.
Federal prosecutors detail the sentence
In a May 28 press release, the U.S. Attorney's Office for the Western District of Pennsylvania said U.S. District Judge Marilyn J. Horan imposed the 27-month prison term and ordered more than $4.7 million in restitution. "This defendant, a financial advisor, betrayed his friend and client, and he stole millions of dollars," U.S. Attorney Troy Rivetti said in the statement, which also credited the FBI with unraveling the scheme.
Prosecutors' account of the scheme
According to WPXI, prosecutors say Pipich engineered a sham loan that shifted more than $3 million from a client's account into BarTom Investments to disguise earlier trading losses. Those transfers were billed as secured loans even though there was no collateral at all, the outlet reported, and Pipich paid himself and his wife over $800,000 from the proceeds while later losing at least $2.6 million in other investments.
Civil filings show broader damage
Federal court records filed on behalf of Berlekamp Family Investments describe an even bigger hit. The trust's amended complaint accuses Pipich of misappropriating roughly $5.5 million from the family fund between 2015 and 2023, sending most of that money into BarTom to cover withdrawals and other obligations, according to GovInfo. The filings say a forensic accounting commissioned by the family flagged the diversions and set off the civil lawsuit.
Legal context and what's next
Pipich pleaded guilty in January to one count of wire fraud, admitting in court that he moved more than $3.7 million in an effort to cover up losses, according to Federal Newswire. He had previously been charged by criminal information late last year, as first reported by RealClear Pennsylvania. At the time of his plea, authorities noted that wire fraud carries a potential 20-year prison sentence and fines that can reach twice the amount of the defendant's gain.
