William Neil “Doc” Gallagher, who promotes his investment business on Christian radio and in books like “Jesus Christ, Money Master,” has been arrested to face first-degree state felony charges of securities fraud and money laundering in Dallas County.
In a related action, the U.S. Securities and Exchange said March 12 it had sued Gallagher in U.S. District Court in Dallas, alleging that in the last five years he fraudulently raised $19.6 million from approximately 60 senior citizens. Gallagher promised he would purchase income-generating assets to provide investors with risk-free returns of up to 8% per year, but the SEC said Gallagher used almost all of the money to pay his personal and business expenses and to make Ponzi payments to certain investors.
The SEC filed its civil complaint under seal on March 7. The U.S. District Court has frozen the assets of Gallagher Financial Group Inc. (GFG) and appointed Dallas attorney Cort Thomas as the receiver to take control of the company. Cort is providing court documents and updated investor information on the Gallagher Financial Group website.
Gallagher was arrested on state fraud charges on March 8, the Dallas District Attorney's Office said March 12.
The Dallas District Attorney’s Office is prosecuting Gallagher. The criminal case is the result of a joint investigation by the Dallas DA’s office, the Texas Department of Insurance, the Texas State Securities Board, and the Hurst Police Department.
Neither Gallagher nor GFG are registered with the Texas Securities Commissioner as agents, brokers, or investment advisers. Gallagher advertised GFG as a retirement planning firm.
The criminal investigation into Gallagher and Gallagher Financial Group is ongoing. Investors should contact the Texas State Securities Board for additional information:
Texas State Securities Board
8700 N Stemmons Freeway, Suite 144
Dallas, TX 75247
Investors may also contact Suzanne Steinmetz of the Enforcement Division at email@example.com.