The Securities and Change Fee charged a Texas radio host on Tuesday for allegedly working a $19.6 million Ponzi scheme that focused aged buyers.
William Neil "Doc" Gallagher, the self-dubbed "Cash Physician" whose radio present aired on three Dallas-area stations, used evangelical language to coerce Christian buyers into giving him cash, in keeping with the SEC's grievance filed March 7.
Gallagher was arrested March eight for securities-fraud and different felony expenses stemming from a separate indictment by the Dallas County District Legal professional's Workplace filed March four.
The SEC alleged that from December 2014 by way of January, Gallagher falsely claimed to be an licensed funding advisor and raised at the least $19.6 million from roughly 60 senior residents. He provided buyers what he known as a Diversified Progress and Revenue Technique Account, claiming it could be used to amass income-generating belongings. He assured buyers risk-free returns within the accounts starting from 5 % to eight % per yr, in keeping with the SEC's grievance.
Exterior of a single $75,000 annuity, Gallagher allegedly used the cash for private and firm bills and to make Ponzi funds to buyers. To hide the scheme, the regulator additionally claimed he supplied buyers phony account statements exhibiting fictitious account balances.
On March eight, 2019, On the SEC's request, United States District Decide Jane J. Boyle ordered that belongings with Gallagher Monetary Group be frozen and positioned into receivership, quickly enjoining the defendants from additional violations. The SEC mentioned in an announcement it's in search of "preliminary, everlasting, and conduct-based injunctions in addition to disgorgement, prejudgment curiosity, and civil penalties" in opposition to the defendants. Gallagher is considered one of 5 workers of Gallagher Monetary Group, in keeping with the corporate's web site.
Gallagher Monetary Group's web site mentioned the agency aimed "to be a car of God’s peace and luxury to as many individuals as doable, serving to first with their monetary peace of thoughts." Gallagher additionally authored the e-book "Jesus Christ, Cash Grasp."
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