A judge in Texas sentenced former radio host and investment advisor William Neil “Doc” Gallagher to three life terms in prison for charges involving a $32 million Ponzi scheme he ran, reports InvestmentNews.
The Tarrant County District Attorney’s office said the scheme defrauded victims ranging in age from 62 to 91, who lost millions of dollars.
Gallagher ran the Gallagher Financial Group and provided financial advice on a radio show in the Dallas area, calling himself the “Money Doctor”. The Securities and Exchange Commission said he promised guaranteed, risk-free returns to his investors, but instead used their investments to pay other clients and to cover his radio costs and other personal expenses. Gallagher pleaded guilty to the charges in August.
Lori Varnall, chief of the elder financial fraud team with the Tarrant County Criminal District Attorney’s office said in a statement, “Doc Gallagher is one of the worst offenders I have seen,” and added, “He ruthlessly stole from his clients who trusted him for almost a decade.”
Some of Gallagher’s victims testified at the sentencing hearing in Fort Worth on Monday, describing losses ranging from $50,000 to $600,000 in savings that they had invested with him.
Judge Elizabeth Beach sentenced Gallagher to the three life terms on charges of securing the execution of a document by deception for an amount greater than $200,000, theft of property more than $300,000 and misapplication of fiduciary property or property of financial institution of more than $300,000.
Gallagher, 80, was also sentenced to a total of 30 years in prison for two other crimes, forgery against the elderly and exploitation of the elderly. The sentences are to be served concurrently.
Gallagher has been in prison since March 2019, when he was arrested on similar charges in Dallas County.
The Chicago investor fraud attorneys at Lewitas Hyman have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact us at (312) 291-4600 or through our online contact form for a no-cost evaluation of your matter.