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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23803 /April 13, 2017

Securities and Exchange Commission v. Daniel H. Glick, et al, No. 17-CV-2251 (N.D. Ill.)

SEC Obtains Preliminary Injunction and Asset Freeze in Investment Scheme Involving Seniors

The Securities and Exchange Commission announced today that on April 6, 2017, Judge Virginia M. Kendall of the United States District Court for the Northern District of Illinois entered a preliminary injunction against Daniel H. Glick and his unregistered investment advisory firm Financial Management Strategies (FMS), continued the freeze of assets in the name of the Defendants, and repeated its order that the Defendants repatriate foreign assets. The court also continued the freeze of assets held in the name of relief defendant Glick Accounting Services. The preliminary injunction order extended the terms of a temporary restraining order and asset freeze order that the court entered on March 23, 2017.

In the complaint filed on March 23, 2017, the Commission alleged that Glick and FMS raised more than $6 million from investors, and that Glick and FMS misappropriated a significant portion of the investor funds to, among other things, pay personal expenses, purchase a Mercedes-Benz, pay other investors, and pay off loans and debts. The complaint further alleged that Glick and FMS provided investors with false account statements to conceal the misappropriation. The complaint also named Glick's business partner David B. Slagter, and Glick's business acquaintance, Edward H. Forte, as relief defendants for the purposes of recovering client funds that Glick transferred or paid them in the form of advances or loans.

The April 6 order preliminarily enjoins Glick and FMS from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The order also preliminary enjoins Glick from exercising powers of attorney over client trusts and trust accounts.

The SEC's investigation, which is continuing, is being conducted by Michelle Muñoz Durk and John Kustusch of the Chicago Regional Office, and the case is being supervised by Jeffrey A. Shank. The SEC's litigation is being led by Steven C. Seeger.

 

https://www.sec.gov/litigation/litreleases/2017/lr23803.htm


Modified: 04/13/2017