On January 9, 2018, Daniel H. Glick, a defendant in ongoing SEC litigation, pled guilty to one count of wire fraud under 18 U.S.C. § 1343 in the criminal case United States v. Daniel Glick, No. 17-CR-739. On November 15, 2017, the United States Attorney's Office for the Northern District of Illinois filed a criminal information charging Glick, a Chicago-based investment adviser, with wire fraud.

According to the plea agreement, from at least 2011 through at least 2017, Glick engaged in a fraudulent scheme to benefit himself to the financial detriment of his clients and two financial institutions. According to the plea agreement, as part of the scheme, Glick misappropriated at least $5.2 million dollars from clients, provided financial institutions with forged checks and other documents, and lied to clients about the use, status, and safety of their invested funds. The plea agreement further states that most of the funds that Glick misappropriated belonged to elderly clients, including his mother-in-law and father-in-law and an individual in a nursing home, and that Glick used some of the stolen funds to pay personal and business expenses.

On March 23, 2017, the SEC brought an emergency action against Glick and his unregistered, Chicago-Based investment advisory firm, Financial Management Strategies (FMS), based on substantially the same conduct. In its complaint, the SEC alleges that Daniel H. Glick and FMS provided clients with false account statements to hide Glick's use of client funds to, among other things, pay personal and business expenses, purchase a Mercedes-Benz, and pay off loans and debts. The SEC's action also named three relief defendants, including Glick's accounting firm, Glick Accounting Services.

On the same day that it filed its action, the SEC obtained a temporary restraining order against Glick and FMS and an asset freeze against Glick, FMS, and Glick Accounting Services. Glick and FMS later consented to the entry of a preliminary injunction. The SEC's litigation against Glick and FMS continues.

For additional information about the SEC action, see the March 29, 2017 and April 13, 2017 litigation releases.

For additional information about the criminal action, see the November 21, 2017 litigation release.