The SEC alleges that Daniel Glick and his unregistered Chicago-based investment advisory firm, Financial Management Strategies (FMS), provided clients with false account statements to hide Glick’s use of client funds to pay personal and business expenses.
Between 2011 and 2016, Glick and his companies raised over $6m (£4.8m, €5.5m) from investors, with most of the money coming from two families.
He was able to obtain power of attorney or otherwise had control over bank accounts with significant deposits.
The SEC has accused Glick of, among other things, using the money to buy a Mercedes-Benz and pay off loans and debts.
Glick also used client money to repay other investors, making the fraud a Ponzi scheme.
Finra, the not-for-profit organisation authorised by the US congress to protect American investors, banned Glick in 2014, according to the SEC’s complaint.
He also had his Certified Financial Planner designation and Certified Public Accountant license revoked for conduct unrelated to the SEC’s charges.
Target the elderly
“As alleged in our complaint, Daniel Glick raised millions of dollars from elderly clients by claiming that he would pay their bills, handle their taxes, and invest on their behalf. In reality, Daniel Glick used much of their money to do what was best for Daniel Glick,” said David Glockner, director of the SEC’s Chicago regional office.
The complaint also names Glick Accounting Services, Glick’s business partner David Slagter, and Glick’s business acquaintance Edward Forte as relief defendants for the purposes of recovering client funds, amounting to more than $1.5m, that Glick transferred or paid them in the form of advances or loans.
The court issued a temporary restraining order against Glick and FMS at the SEC’s request, and issued an order freezing the assets of Glick, FMS, and Glick Accounting Services.
