The Securities and Exchange Commission announced that it has charged
Texas resident William Neil "Doc" Gallagher-the self-styled "Money
Doctor" featured on three Dallas-area radio stations-in an emergency
action to shut down a $19.6 million Ponzi scheme targeting elderly
investors' retirement funds. The SEC also charged Gallagher Financial
Group, Inc. and W. Neil Gallagher, Ph.D. Agency, Inc., companies that
Gallagher used to carry out the scheme.
The SEC's complaint, which was filed under seal on March 7,
2019, alleged that Gallagher made frequent religious references on his
radio shows to establish his standing among a target audience of retired
Christian investors. 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, in which he promised to acquire income-generating assets for
his clients in five specified categories. He 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 to make Ponzi payments to investors. To lull
investors and conceal the scheme, Gallagher provided investors phony
account statements showing false account balances.
William Neil "Doc" Gallagher, Gallagher Financial Group, Inc., and W. Neil Gallagher, Ph.D. Agency, Inc. (Release No. LR-24420; Mar. 12, 2019)
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