On Monday, a Texas radio program host who claimed to be a licensed investment advisor was sentenced to three life prison sentences for defrauding elderly victims out of $32 million in retirement funds.
William Neil “Doc” Gallagher, 80, was also slapped with a concurrent 30-year prison sentence from Judge Elizabeth Beach for guilty pleas in August on six other charges. His victims testified about their $50,000 to $600,000 losses after investing with the Gallagher Financial Group.
Gallagher advertised on Christian radio with, “See you in church on Sunday.” He also wrote several religiously-themed investment books, such as “Jesus Christ, Money Master.”
The SEC charged the self-styled “Money Doctor” in 2019, alleging that Gallagher made frequent religious references on his radio shows to establish his standing among a target audience of retired Christian investors.
“In reality, except for one $75,000 annuity, Gallagher purchased no assets”
Securities and Exchange Commission
From December 2014 through January 2019, he raised at least $19.6 million from approximately 60 senior citizens. Falsely claiming to be a licensed investment adviser, he offered an investment that he called a Diversified Growth and Income Strategy Account. He promised to acquire income-generating assets for his clients in five specified categories.
He also promised investors that they would receive guaranteed, risk-free returns in their accounts ranging from 5% to 8% per year.
In reality, except for one $75,000 annuity purchase, Gallagher purchased no assets in any of the five categories and no other assets to back the promised returns.
Instead, he exhausted virtually all investor funds on spending unrelated to the accounts, including misappropriating significant portions for personal and company expenses and Ponzi payments to investors. To lull investors and conceal the scheme, Gallagher provided phony account statements showing false account balances.
Citing court documents, Newsweek reported that his offices were in “disarray and disorder” with “over a decade of business records and unopened mail scattered and stacked randomly throughout the office and additional suites.” He kept paperwork in his car and lacked an accounting system to track his victims’ investments.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
