A decorated professor's legacy is at the center of a major legal battle, as his family's investment firm accuses their long-time financial advisor of embezzling millions. Berlekamp Family Investments, LLC filed a complaint in the United States District Court for the Western District of Pennsylvania on June 6, 2024, against Thomas Pipich and several associated entities.
The late Professor Elwyn Berlekamp, renowned for his contributions to mathematics and computer science, established Berlekamp Family Investments (BFI) in 2012 to manage and preserve his family's wealth. After his death in 2019, it was discovered that Thomas Pipich, a trusted financial advisor who had been managing BFI since its inception, allegedly misappropriated over $5 million from the family’s funds. According to the complaint, Pipich used these funds to cover up bad investments made with money belonging to Bart Woytowicz, a former college basketball teammate of Pipich's and co-founder of BarTom Investments.
The lawsuit details how Pipich began diverting funds from BFI starting in June 2015. The stolen money was funneled through BarTom Investments and used to make distributions to both himself and Woytowicz. Additionally, some funds were directed towards Mount West Investments under fraudulent pretenses. In total, Woytowicz received approximately $3.26 million in distributions from BarTom between 2015 and 2023. During this period, Pipich also directed over $500,000 in "management fees" from BFI to his own company, Thomas Barton Capital Group.
Persis Berlekamp became aware of potential financial irregularities in September 2023 after being alerted by Roger Strauch of The Roda Group. Confronted by Persis during a phone call on September 21, 2023, Pipich admitted to the unauthorized diversion of funds but claimed he lacked the resources to repay any portion of the stolen money. Further investigation by forensic accountants confirmed that without the misappropriated BFI funds, BarTom would not have been able to sustain its operations or make payments.
Despite repeated demands for restitution backed by detailed evidence including Pipich’s own confessions and financial records showing the unlawful transfers, neither Pipich nor Woytowicz have returned any stolen funds. The complaint seeks damages including general and punitive damages, treble damages under California Penal Code §496(c), attorneys' fees, costs, pre-judgment interest and post-judgment interest.
Representing Berlekamp Family Investments are attorneys Colin J. Callahan from Flannery Georgalis LLC and T. Markus Funk along with Sean Benjamin Solis from Perkins Coie LLP. The case is presided over by Judge Mark R. Hornak under Case ID: 2:24-cv-00825-MRH.