Doc Gallagher Punishment-3 Life Sentences-Plus 30 Years
Bible Thumping Advisor Preyed Upon Churchgoers
November 2021-Fort Worth, TX
According to recent press William Neil “Doc” Gallagher was sentenced to three life sentences, plus 30 years, following his August 2021 guilty plea stemming from a $32 million Ponzi scheme that Gallagher ran in Hurst, TX.
Gallagher, who is 80 years old, ran the Gallagher Financial Group. Gallagher, and referred to himself as the “Money Doctor“, advertised heavily on Christian radio and authored the book “Jesus Christ, Money Master” pleaded guilty to similar charges in Dallas County last year and was sentenced to 25 years in prison.
During the hearing this week over a dozen senior citizen victims testified about losing anywhere from $50,000 to $600,000 in the Ponzi scheme operated by Gallagher.
Lori Varnell, chief of Tarrant County Criminal District Attorney’s Elder Financial Fraud team said “Doc Gallagher is one of the worst offenders I have seen. He exploited many elder individuals. He worked his way around churches preying on people who believed he was a Christian. Gallagher targeted elderly people, teachers, police officers, single moms, people who really needed this money and can’t earn it back. These people live in fear of tomorrow because they have no other means to live. They invested with him time and time again because they trusted him.”
A Ponzi scheme is a type of fraud which pays “profits” to earlier investors using funds raised from recent investors, which creates the impression that the business is an ongoing profitable venture. The scheme can maintain this illusion of a legitimate, ongoing profitable operation as long as victims can be lured in to provide the cash needed to pay “profits’ to earlier investors and so long as most of the investors do not demand full repayment of their investment.
The scheme is named for Charles Ponzi, who operated such a fraud in the 1920’s.
On their “How to Avoid Investment Scams That Target Groups” website, the US Securities & Exchange Commission (SEC) defines Affinity Fraud as:
“Affinity fraud refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups. The fraudsters who promote affinity scams frequently are – or pretend to be – members of the group. They often enlist respected community or religious leaders from within the group to spread the word about the scheme by convincing those people that a fraudulent investment is legitimate and worthwhile. Many times, those leaders become unwitting victims of the fraudster’s ruse.
These scams exploit the trust and friendship that exist in groups of people who have something in common. Because of the tight-knit structure of many groups, it can be difficult for regulators or law enforcement officials to detect an affinity scam. Victims often fail to notify authorities or pursue their legal remedies and instead try to work things out within the group. This is particularly true where the fraudsters have used respected community or religious leaders to convince others to join the investment.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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