(File Photo of a Gavel)

Noah Haswell, Beaver County Radio News

(Pittsburgh, PA) A Pittsburgh man has been sentenced to 27 months in federal prison and ordered to pay more than $4.7 million in restitution after being convicted of defrauding an investment client. 

Thomas Pipich, 74, was sentenced by United States District Judge Marilyn J. Horan, according to U.S. Attorney Troy Rivetti. 

Federal prosecutors said Pipich stole millions of dollars from one investment client to conceal losses tied to another client. 

According to court records, Pipich helped create BarTom Investments LLC in 2005. Prosecutors said the investment fund suffered major losses and had minimal account balances by May 2017. 

Authorities said Pipich then created a sham loan between BarTom and another client, transferring more than $3 million to BarTom under false pretenses. Prosecutors said he provided false financial summaries and misrepresented the loan as secured. 

Court records show Pipich paid himself more than $800,000 from the loan proceeds and lost at least $2.6 million through additional investment losses.