Columbia Falls Woman Pleads Guilty to Running Ponzi Scheme

A Columbia Falls woman has admitted to operating a Ponzi that took more than $1.5 million from 28 different investors.

Catherine Ann Finberg appeared before Flathead County District Court Judge Amy Eddy on Jan. 25 at a change of plea hearing. Finberg entered a no contest plea to theft by embezzlement and guilty to operating a pyramid scheme and two counts of fraudulent securities practices, all felonies. Prosecutors have agreed to drop two charges of failure to register as a securities broker.

Finberg will be sentenced on March 16. Prosecutors are expected to recommend Finberg be sentenced to 40 years in the Montana State Prison with 30 years suspended.

Last year, Finberg’s investment accounts were frozen at the request of attorneys with the Montana Commissioner of Securities and Insurance who were investigating the Columbia Falls woman. Although Finberg had not yet been charged, the attorneys believed they had enough evidence of illegal activity and wanted to stop her before she harmed anyone else.

A Ponzi scheme involves a person paying investors using money obtained from later investors, rather than from any profits earned.

According to court documents, between 2008 and 2016, Finberg, who has served as an assistant coach for the Columbia Falls High School girls basketball team, took at least $1.5 million from 28 different people, who expected her to invest the funds on their behalf. According to charging documents, at least four of those investors were “vulnerable persons” because of their advanced age and one was mentally disabled.

Last summer, Finberg was charged with five felonies stemming from the Ponzi scheme. She pleaded not guilty to all charges in September.