A Columbia Falls woman has denied six felony counts accusing her of committing a $1.5 million Ponzi scheme and mishandling funds she was entrusted with for a disabled person. 

Catherine Ann “Cathy” Finberg pleaded not guilty to felony theft by embezzlement, failure to register as a securities broker, failure to register securities, operating a Ponzi scheme and two counts of fraudulent securities practices in Flathead District Court on Thursday afternoon.

Finberg said little in her court appearance other than “yes ma’am,” or “no” in response to questions from Flathead District Judge Amy Eddy. 

Finberg was taken into custody immediately after the hearing. 

“You have to be booked and released here today following this appearance,” Eddy told Finberg. 

A trial date was set for Feb. 27.

The state has alleged in court documents that Finberg took investments from 28 people between 2008 and 2016.

Finberg allegedly collected more than $1.2 million, but lost 83 percent of the money. In addition, approximately $300,000 allegedly was mismanaged for a disabled person.

She was not properly registered as a securities broker-dealer, the state claims, and investors never received tax documents or proper paperwork for the transactions. Finberg allegedly told the investors that she was taking care of their taxes.

Some of the victims allegedly are elderly people who each gave Finberg more than $100,000 to manage. Court documents claim that the invested money was improperly used to pay mortgages in addition to monthly expenditures that averaged $3,805 to investors, $1,905 to a credit card and $500 to another credit card. The state claims Finberg went on a cruise in April, the same month a Flathead District Court order froze her bank accounts because the Federal Bureau of Investigation and State Auditor’s Office were investigating the suspected scheme. 

Aside from the investments, the state has alleged in court documents that the only income Finberg received from 2008 until 2016 was $11,000 from the Columbia Falls School District where she is an assistant basketball coach.

Finberg’s counsel filed a waiver of conflict of interest in the case, saying that she was not concerned that the law firm had represented two relatives in unrelated matters. The relatives are possible victims of the suspected scam. 

Reporter Megan Strickland can be reached at 758-4459 or mstrickland@dailyinterlake.com.