William Neil “Doc” Gallagher, who promoted his investment business on Christian radio and in books like “Jesus Christ, Money Master,” was arrested March 8 on first-degree state felony charges of securities fraud and money laundering in Dallas County. Prosecutors disclosed the arrest on March 12.
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.
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 State Securities Board, the Texas Department of Insurance, 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.