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Chicago-Based Advisor Facing SEC Charges for Fraud Targeting Senior Investors

May 12, 2017 Blog

Investment fraud scams targeting senior citizens have long been on the federal government’s list of priorities. As we reported in 2015, brokers often sell complex and risky investment products to senior investors without adequately explaining the risks, and in many cases without disclosing the high commissions they earn from the sales. Last year, we covered the disturbing trend of financial fraud as a “hidden” form of elder abuse. Unfortunately, despite the prevalence and wide acknowledgement of fraudulent investment schemes targeting senior investors, this is a problem that is not going away any time soon.

Investment Advisor Barred by FINRA Charged in Multi-Million-Dollar Senior Investment Fraud

As just one example of the numerous investment fraud scams that continue to deprive senior citizens of their retirement savings every year, the Securities and Exchange Commission (SEC) recently charged Chicago investment advisor Daniel H. Glick and his advisory firm, Financial Management Strategies, with fraudulently raising millions of dollars from unsuspecting senior citizens. Glick had previously been barred by the Financial Industry Regulatory Authority (FINRA) and had lost both his Certified Financial Planner designation and his Certified Public Accountant license in unrelated matters involving alleged theft from his own elderly family members.

According to a press release issued by the SEC, Glick and his firm, “provided clients with false account statements to hide Glick’s use of client funds to pay personal and business expenses, purchase a Mercedes-Benz, and pay off loans and debts among other misuses.” The SEC has also accused Glick and Financial Management Strategies of:

  • “[C]laiming that he would pay [senior investors’] bills, handle their taxes, and invest on their behalf”;
  • Obtaining power of attorney over senior investors’ accounts;
  • Pooling investors’ funds rather than maintaining them separately, and commingling investors’ funds with personal and business assets;
  • Diverting more than $1.5 million in investors’ funds to friends and business associates; and,
  • Using investor funds to repay earlier investors.

Many of the senior citizens who invested with Glick and Financial Management Strategies had withdrawn funds from variable annuity policies, life insurance policies and individual retirement accounts (IRAs). Some invested hundreds of thousands of dollars with Glick and his firm. Others invested millions.

What to do if You Suspect Senior Investment Fraud

If you are a senior citizen and you are concerned about investment fraud, or if you are concerned that an elderly loved one may have unknowingly put his or her retirement savings at risk, it is important that you seek help as soon as possible. The law protects individuals who have been victimized by investment fraud, but investors must take action in order to protect their rights. The stock fraud lawyers at Zamansky LLC have recovered millions of dollars for aggrieved investors, and if you or a senior family member has experienced fraudulent investment losses, we can act quickly to pursue a financial recovery.

Schedule a Free Consultation to Learn More

If you would like more information about the warning signs of an investment fraud scam or the steps you need to take if or a loved one is a victim of investment fraud, you can contact Zamansky LLC for a free, no-obligation consultation. To speak with an attorney in confidence, call (212) 742-1414 or get in touch with us online today.