Daniel Glick, a Chicago-Based investment adviser who bilked clients, including older investors, of $5.2M, has been sentenced to 151 months in prison. He also has to pay $5.2M in restitution. Glick’s Ponzi-like fraud took place between 2011 and 2016.
Glick, who is the owner of Glick Accounting Services Inc., Financial Management Strategies Inc., and Glick & Associates Ltd., pleaded guilty earlier this year to wire fraud. He told clients that not only would he invest their funds but also that he would pay their bills for them. He sent them account statements that were “false and misleading.”
Glick’s own family, including his wife’s parents, were among his victims. He defrauded them of hundreds of thousands of dollars. Another family paid him $700K in fees while he misappropriated hundreds of thousands of dollars. Clients’ funds were also used to pay two business associates.
In a parallel civil case, brought by the US Securities and Exchange Commission, Glick also settled those charges against him and his three companies. According to the regulator, Glick defrauded elderly investors of their retirement savings. He is accused of forging not just documents but also checks, and of lying to clients about their money. This allegedly included exaggerating how much cash was available, as well as inflating turns.
Glick used some of investors’ money on his own expenses, including the purchase of a Mercedes Benz. Glick designated certain investments as belonging to specific investors even though the investments had been bought by other investors.
It was in 2014 that the Financial Industry Regulatory Authority barred Glick from the securities industry. Also, his CPA license and certified financial planner designation were taken away for conduct not related to this SEC case.
Senior Investor Fraud
Unfortunately, seniors are frequently targeted by fraudsters. In addition to the SEC’s recent Investor Alertwarning seniors about Ponzi scams, the regulator also offers A Guide for Seniors: Protect Yourself Against Investment Fraud. As the SEC notes, investor self-protection can be crucial to one’s future, especially after retirement. The Commission advises older investors to:
· Do your research on the investment professional you are considering working with. Is he/she licensed to sell securities in the state? Have there been investor complaints filed against this individual in the past? Just because a financial representative looks and sounds educated and informed doesn’t mean that they know what they are doing or that you can automatically trust them.
· Be cautious of investment professionals who use your fears about your future, your health, or your ability to financially support yourself to get you to invest.
· Be wary of “once-in-a-lifetime” opportunities and/or investment professionals that insist you must invest now (or you’ll miss out.) Investing is not something to be done in a rush or without first understanding what you are getting involved in.
· Be cautious when it comes to investment opportunities that come to you unsolicited.
· Don’t give all of your power/authority away to an investment professional. Keep abreast of your own accounts and their activities. Ask questions and voice concerns. Don’t just assume that your investment adviser knows better than you or is doing what’s in your best interests.
· If you can’t withdraw your principal or cash out any profits that you’ve supposedly, consider this a strong red flag.
· Report any suspicions of fraud or misconduct.
Investor Alert: Ponzi Schemes Targeting Seniors, SEC, April 9, 2018
More Blog Posts:
SEC Proposes “Regulation Best Interests” that Would Prevent Brokers from Merely Calling Themselves Investment Adviser, Stockbroker Fraud Blog, April 20, 2018
Investment Adviser is Accused of “Ponzi-Like” Scam Involving 50 Investors, Including Friends and Family, Stockbroker Fraud Blog, April 18, 2018
SEC Accuses Broker of Giving Some Customers Preferential IPO Access in Exchange for Over $1M in Kickbacks, Stockbroker Fraud Blog, January 2, 2018