Investment Promoter Indicted In $19.6 Million In Money Laundering, Securities Fraud

Investment Promoter Indicted In $19.6 Million In Money Laundering, Securities Fraud

Staff Reports

The Texas State Securities board announced the latest indictment for fraud and money laundering in Dallas County based on a joint investigation between several state and local agencies.

William Neil “Doc” Gallagher, who promotes his investment business on Christian radio and in books like “Jesus Christ, Money Master,” was arrested on first-degree state felony charges of securities fraud and money laundering in Dallas County.

In a related action, the U.S. Securities and Exchange said March 12 it had sued Gallagher in U.S. District Court in Dallas, alleging that in the last five years he fraudulently raised $19.6 million from approximately 60 senior citizens.

Gallagher promised he would purchase income-generating assets to provide investors with risk-free returns of up to 8% per year, but the SEC said Gallagher used almost all of the money to pay his personal and business expenses and to make Ponzi payments to certain investors.

The SEC filed its civil complaint under seal on March 7. Gallagher’s assets have been frozen and the federal court appointed a receiver to determine whether money can be recovered for investors.

Gallagher was arrested on state fraud charges on March 8, the Dallas District Attorney’s Office said March 12.

The Dallas District Attorney’s Office is prosecuting Gallagher. The criminal case is the result of a joint investigation by the Dallas DA’s office, the Texas State Securities Board, the Texas Department of Insurance, and the Hurst Police Department.

Gallagher owns Gallagher Financial Group Inc. (GFG), which he advertises as a retirement planning firm.

Neither Gallagher nor GFG are registered with the Texas Securities Commissioner as agents, brokers, or investment advisers. The criminal investigation into Gallagher and Gallagher Financial Group is ongoing.

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