Feds Charge Illinois Advisor In $5.2M Fraud
Nov. 16--An investment adviser, through Orland Park businesses he operated, is alleged to have stolen approximately $5.2 million from older clients, including his mother-in-law and father-in-law, the U.S. attorney said Wednesday.
In a criminal information filed in federal court in Chicago, Daniel Glick is accused of using some of the money given to him by clients to invest to buy a Mercedes-Benz, repay business loans and make payments on his mortgage.
Glick, 64, of Chicago, is charged with one count of wire fraud, according to the U.S. attorney.
During the alleged scheme, which began in early 2011 and continued until this past April, Glick owned and operated Financial Management Strategies Inc., Glick Accounting Services Inc., and Glick & Associates Ltd., all of which were located in Orland Park.
Glick told clients he would invest their money and also handle paying bills on their behalf, and prepared "false and misleading" account statements for them showing exaggerated investment balances, according to the criminal information.
He is accused of defrauding his in-laws out of hundreds of thousands of dollars by forging their signatures on letters and checks, allowing the transfer of their money into his business checking account, according to the U.S. attorney.
Glick convinced one family to pay him $700,000 in fees for his services, even though, unbeknownst to them, he had already misappropriated hundreds of thousands of dollars from them, the U.S. attorney said in a news release announcing the charge.
Glick also made "Ponzi-type payments" to clients, using money belonging to some clients to make payments for the benefit of other clients, according to the information. Although funds in one client's account had been siphoned off, Glick used money belonging to another client to pay the first client's nursing home expenses, according to the U.S. attorney.
An arraignment on the wire fraud charge has not yet been scheduled, the office said in a news release. A conviction would carry a maximum sentence of 20 years in prison, according to the release.
In March, the U.S. Securities & Exchange Commission, in a complaint filed in federal court in Chicago, accused Glick of siphoning off clients' money for his own use as well as making purported loans to friends and business associates. The commission said that Glick, through his Financial Management Strategies, had raised more than $6 million from investor clients and had misappropriated a significant portion of the funds.
In that complaint, the SEC notes that Glick, in 2013, had been sanctioned by the Financial Industry Regulatory Authority and the Certified Financial Planner Board of Standards over his unwillingness to cooperate in an investigation into his alleged theft of $450,000 from his elderly family members in 2011.
The board of standards revoked his right to use the Certified Financial Planner designation and his Illinois certified public accountant license was later revoked.
Also in March, the judge overseeing the SEC complaint ordered a freeze of Glick's assets, including his personal and business assets, according to court filings.
According to records kept by the Illinois secretary of state, Financial Management Strategies is still listed as an active firm while Glick Accounting Services was involuntarily dissolved this month and Glick & Associates was dissolved in July 2014.
A message left Wednesday with an attorney representing Glick in the SEC matter was not immediately returned.
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