A Texas man who declared himself “The Money Doctor” on Dallas-area radio stations has been charged with targeting retired Christian investors in a $19.6 million pyramid scheme.
William Neil “Doc” Gallagher of North Richland Hills, Texas, has been charged civilly by the Securities and Exchange Commission and criminally by the Dallas County District Attorney’s Office in the scheme, which he promoted by buying air time on three Dallas-area radio stations. He made frequent religious references on his shows to draw in retired Christian investors, the SEC said.
The SEC obtained an order from United States District Court for the Northern District of Texas freezing Gallagher’s assets. He was arrested March 8 on the criminal charges. The radio shows were still airing as late as January, the SEC noted.
Although taking in millions of dollars from 60 investors ranging in age from 62 to 91, the only asset Gallagher purchased was one $75,000 annuity. He used the money he obtained to pay early investors, radio costs and his own personal expenses in the scheme that went on from December 2014 to January 2019, the complaint said.
Gallagher falsely claimed to be a licensed investment advisor and 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 U.S. Treasury securities, publicly traded stock, fixed index annuities, life settlements and mutual funds. He promised investors they would receive guaranteed, risk-free returns ranging from 5 percent to 8 percent a year and “retirement income you’ll never outlive.” He convinced investors to roll over 401(k) and IRA funds to companies he controlled, the SEC complaint said.
In the early 2000s Gallagher was associated with a registered broker-dealer and with a registered investment advisor, but both of those associations ended, the SEC said. In 1999 the Texas State Securities Board reprimanded Gallagher for engaging in fraudulent business practices, including falsifying check receipt books and falsely advertising that he was a registered investment advisor.
The SEC has charged Gallagher, Gallagher Financial Group and W. Neil Gallagher, Ph.D. Agency, firms Gallagher controlled, with fraud. The criminal indictment charges Gallagher with securities fraud and money laundering. The Dallas County District Attorney’s Office is encouraging investors who think they may have been defrauded to contact the Texas State Securities Board to file a complaint.