SEC Uses Restraining Order Against Chicago-Based Investment Adviser, Alleges Massive Senior Fraud

The US Securities and Exchange Commission is accusing investment adviser Daniel H. Glick and his unregistered firm, Financial Management Strategies, of bilking older investors of millions of dollars. The regulator issued a temporary restraining order against the Chicago-based investment adviser, as well as an emergency asset freeze.

According to the Commission, Glick and his firm gave false account statements to clients to conceal his use of their money, which included paying for his own personal and business expenses. He allegedly raised millions of dollars from older investors by saying he would do their taxes, pay their bills, and make investments for them. After investors would give Glick huge sums of money to invest, he either obtained power of attorney or took over control of their bank accounts.

In its complaint, the SEC stated claims that Glick not only took advantage of seniors who trusted him with their retirement funds but also he allegedly exploited these clients’ family members. Most of his investors, said the regulator, belonged to two distinct families.

The SEC contends that Glick and his companies had a duty to use investors’ funds for their clients’ benefit as opposed to their own. The regulator accused Glick and his company of abusing the trust granted to them.

Also, said the Commission, rather than keeping investor funds in specific accounts for each investor, the money was pooled and commingled with Glick’s own funds, as well as his businesses’ funds. Aside from spending the money on himself and diverting some to his businesses, Glick also sent money to friends and business associates, including David Slagter and Edward Forte.

Glick collectively gave over $1.5M to the two men. They are relief defendants in the SEC case. (Glick Accounting Services is a relief defendant, too.)

Glick allegedly used investor money to pay back other investors. The Commission said that the bogus account statements overstated the investment amounts, inflated interest amounts, exaggerated how much cash was available, and misallocated investments.

FINRA already barred Glick in 2014. Also, for behavior not related to this SEC case, he no longer has his CPA license or his designation as a Certified Financial Planner.

Unfortunately, with their healthy savings and retirement funds, older investors continue to be a target of fraudsters. At Shepherd Smith Edwards and Kantas, LTD LLP, our elder financial fraud lawyers work with older investors and their families in recouping their losses.

New Study Tracks The Financial Toll that Elder Financial Fraud Takes on Victims’ Loved Ones
In addition to the emotional and financial toil that becoming the victim of fraud can take on an older investor, we know that family members suffer, too, as a result. A recent Allianz Life Insurance Co. of North America study found that when an older person is financially abused, almost 90% of caregivers suffer financial harm. About 100 potential and active caregivers were surveyed.

The study, called “The 2016 Safeguarding Our Seniors Study,” found that on average, elder financial abuse costs caregivers about $36K. This hurts caregivers’ own ability to save for their retirement.

Even without fraud, caregivers already spend on average over $7K a year with less than half of caregivers getting financial assistance for their efforts. The study said that caregivers of elder financial fraud victims spend about $5,400 more taking care of elderly loved ones than those whose older loved ones were not financially abused. The need for direct financial assistance for an older relative who has been defrauded has been known to more than double compared to the funds that are typically provided to an elderly loved one who wasn’t financially abused.

Contact our securities fraud law firm today.

The SEC Complaint in the Glick Case (PDF)

The Allianz Study