Daniel Glick, a Chicago investment adviser, is charged with wire fraud over allegations that he stole about $5.2M from elderly clients, including the parents of his wife. Glick was the owner of Glick & Associates Ltd., Glick Accounting Services, and Financial Management Strategies Inc.
He allegedly began bilking investors in 2011 through last April. The criminal information in his senior investor fraud case accuses Glick of promising clients that he would invest their funds and pay their bills but he instead created account statements that inflated investment balances while he used their money to buy a Mercedes, pay his mortgage, and pay back business loans. Glick is accused of making Ponzi-like payments to clients.
Among those whom he allegedly defrauded were his in-laws, whose signatures he is accused of forging to transfer their money to his own business account. They lost hundreds of thousands of dollars. Another family purportedly paid Glick $700K in fees even while he allegedly misappropriated hundreds of thousands of their dollars.
Earlier this year, the US Securities and Exchange Commission brought civil charges against him. The regulator accused him of misappropriating a significant chunk of the over $6M in investor funds that he raised.
The judge presiding over that case ordered that Glick’s assets be frozen in the wake of the probe.
Senior Investor Fraud
It is unfortunate older investors continue to be a favorite target of fraudsters with that figure rising rather than decreasing yearly. In a joint Investor Alert by the SEC, North American Securities Administrators, and the Financial Industry Regulatory Authority, the three regulators named a number of investment products that are often found used in scams bilking elder investors, including:
· Charitable Gift Annuities
· Investments touted as “Risk Free”
· Investments guaranteeing “High Returns”
· Certificates of Deposit (CDs)
· Promissory Notes
· Sale and Leaseback Contracts
· Investments that are unsuitable for older investors with conservative investment goals
· Hybrid Securities Products
· Variable Annuities
Those seeking to commit elder financial fraud are looking to take advantage of older investors’ robust retirement accounts and/or life savings. Some senior investors may also be suffering from impairments or disabilities related to aging that make them easier to defraud.
Operator of Investment Scheme Involving Seniors Charged Criminally, SEC, November 21, 2017
More Blog Posts:
Two Ex-Ameriprise Financial Services Brokers Settle With FINRA Over Margin Trades, Stockbroker Fraud Blog, October 24, 2017
Massachusetts Accuses Investment Adviser of Venture Capital Fraud, Stockbroker Fraud Blog, October 20, 2017
Securities Fraud Settlements: HSBC, Deutsche Bank, and Citi Settle Libor Class Action for $132M & RBS Settles Mortgage Bond Trading Case for $44M, Institutional Investor Securities Blog, October 31, 2017