Tuesday, October 27, 2020

Radio host William Gallagher jailed for defrauding elderly Christian investors


William Neil “Doc” Gallagher, a financial consultant and radio host who stole more than $20 million from investors, has been sentenced to 25 years behind bars after reaching a plea agreement with Dallas County prosecutors.

Gallagher, 79, pleaded guilty Friday to one count each of theft of more than $300,000, money laundering of more than $300,000 and securities fraud of more than $100,000.

In addition to the prison term, the former host of The Money Doctor has been ordered to pay $10,386,816.68 in restitution to his victims.

Gallagher has been in custody since his arrest last March, which came after he was indicted on the charges.

- Advertisement -

Prosecutors said he targeted elderly, Christian listeners of his radio show and recommended that they meet with him to discuss their investments. In those meetings, he promised them annual returns of 5% to nearly 9% if they invested in securities with him — calling it “retirement income you’ll never outlive,” according to a criminal complaint.

Gallagher, who was not certified to advise clients on securities, took in as much as $29.2 million from about 60 investors from December 2014 to January 2019, authorities said. On Jan. 31, 2019, those accounts contained just $821,951.

Authorities said Gallagher operated a Ponzi scheme, paying out about $5.9 million to early investors by using newer investors’ money. He also used several million dollars for payroll, radio and website expenses as well as personal expenses including legal costs.

In 1999, the Texas State Securities Board had fined Gallagher $25,000 for falsely saying that he was a registered investment adviser and for faking check-receipt books.

- Advertisement -

Following the indictment, his firm, Gallagher Financial Group, had its assets frozen and an attorney was appointed to oversee the funds.

“He took advantage of some of the most vulnerable people in our society,” lead prosecutor Alexis Goldate said in a written statement announcing the sentencing. “He targeted elderly investors and individuals attracted to his Christian ideals and then stole from them.”

After his plea, Gallagher told the court he wanted to apologize to his friends and family, authorities said.

He faces additional charges in Tarrant County.


Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Former Jacksonville City Council members set for sentencing in fraud case

Former Jacksonville City Council members Katrina Brown and Reggie Brown are scheduled to be in federal court Tuesday to begin a hearing on their...

EU takes legal action against Cyprus and Malta over investment for citizenship scheme

The European Union’s executive said on Tuesday it was launching legal action against Cyprus and Malta over their investor citizenship programmes, also known as...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Two U.S. Navy service members get prison for defrauding military insurance program

Two U.S. Navy service members were sentenced in San Diego federal court Friday for their roles in an insurance fraud scheme that involved making false medical claims to...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks