Elder Financial News Roundup: Daniel H. Glick and Investment Professionals Inc.
Chicago investment advisor Daniel H. Glick. accused of stealing millions from elderly clients
In late March, the SEC won a temporary restraining order and asset freeze against Chicago, Illinois broker Daniel H. Glick. Glick – along with his firm, Financial Management Strategies Inc. – was accused of taking money from elderly clients and utilizing it for personal use, including spending it on a Mercedes. To cover up his actions, he is reported to have then created false account statements that exaggerated investment amounts and overstated the cash available.
The SEC had previously sued Glick, and in late March, U.S. District Judge Virginia M. Kendall signed an order freezing his personal assets and those of FMS, along with his other company, Glick Accounting Services Inc.
“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,” said David Glockner, SEC Chicago Regional Office Director. “In reality, Daniel Glick used much of their money to do what was best for Daniel Glick.”
This wasn’t the first time Glick has been in trouble. In 2013, his certified public accountant license was revoked, and in 2014 he was permanently barred by the Financial Industry Regulatory Authority (FINRA).
Texas firm Investment Professionals ordered to pay large fine
In November of last year, Investment Professionals Inc. was charged by the Massachusetts Securities Division with using “high-pressure sales contests” and selling investment products to elderly clients that were deemed unsuitable. In March, the firm was ordered to pay a $100,000 fine.
Although IPI is based in San Antonio, many of their representatives work at community banks in Massachusetts. In addition to the fine, the firm agreed to give restitution to the affected clients and use a compliance consultant to review its policies covering the supervision of their members and the sale of securities to people over age 65.
The firm will also have its Financial Industry Regulatory Authority rules compliance scrutinized, including its non-cash compensation and networking arrangements.
Sadly, elder financial fraud is a growing problem. If you feel that your broker or financial advisor violated securities industry rules and you lost money as a result, you may be able to recover it through FINRA securities arbitration or other legal means. Scott Silver is currently the chairman of the American Trial Lawyers Association, Securities and Financial Fraud Group and our attorneys routinely represent investors in securities arbitration claims in Illinois, Massachusetts, and nationwide.
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