A court-appointed receiver says it’s difficult to know what happened to Path America investors’ money because the money trail leads to Dargey Development and other closely related entities he doesn’t control.
Path America’s finances and business affairs are so intertwined with other companies controlled by former CEOLobsang Dargey that it’s impossible right now to know exactly where investors’ money went, a court-appointed receiver said Wednesday in his first report.
Nearly a month has passed since a federal judge appointed a receiver to run Everett-based Path America and stripped Dargey, 42, of Bellevue, of control of the firm that fueled his remarkable rise, leaving in limbo active real-estate projects in Seattle, Everett, Shoreline and Kirkland.
In a court filing, the receiver, Michael Grassmueck, concurred with federal regulators’ allegations that funds raised for the Potala Tower in Seattle and Farmer’s Market in Everett were diverted for purposes that had little to do with developing those projects, including personal loans to Dargey, commissions and purchases of unrelated properties.
Read more by clicking below image