The U.S. Department of Justice has charged a Chicago investment adviser with stealing more than $5 million from clients and family members in a Ponzi-style scheme. The adviser, Daniel Glick, used the money to purchase a luxury car, repay business loans, and pay his mortgage.
According to U.S. Attorney Joel Levin, 64-year-old Glick allegedly stole $5.2 million from clients of his three accounting and financial services firms in Orland Park, a suburb of Chicago. Glick was charged with one count of wire fraud and could face up to 20 years in prison if convicted.
Glick Operated Ponzi-like Scheme
Glick is alleged to have stolen the money through his three businesses and spent it on himself and business associates. To cover up the fraud, he used a Ponzi-like scheme, comingling funds and routinely paying clients with other clients’ money.
The indictment stated that in order to conceal the scheme, Glick continued to pay bills and expenses for certain clients, even though their funds were depleted or in some cases gone. In one instance, Glick used another client’s funds to pay nursing home expenses for an elderly client, whose funds Glick already had used up.
Glick also fraudulently obtained hundreds of thousands of dollars from his elderly in-laws by using fake signatures to fool Citizens Banks and U.S. Bank into transferring their money to his accounts.
In addition to outright stealing, Glick’s businesses—Financial Management Strategies Inc., Glick Accounting Services Inc., and Glick & Associates Ltd.—also received large benefit fees. According to the indictment, Glick convinced one family to pay him $700,000 in fees, even though he had already misappropriated hundreds of thousands of dollars of their money.
SEC Files Civil Suit Against Daniel Glick
In March the U.S. Securities and Exchange Commission (SEC) sued Glick and two of his business associates for similar actions. The SEC also claims that two of Glick’s business associates, Edward Forte and David Slagter, received close to $1 million from Glick’s scheme.
Have You Lost Money with Daniel Glick?
If you believe you have been the victim of an investment scheme or have lost money investing with Daniel Glick, you may have certain legal rights that require your immediate attention.
Call an Investment Fraud Attorney Today
If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions.