Chicago-based Investment Adviser Settles SEC Charges for Fraudulent Scheme and Is Sentenced to 151 Months in Prison in Related Criminal Case

Litigation Release No. 24118 / April 23, 2018

SEC v. Daniel H. Glick, et al., No. 17-CV-2251 (N.D. Ill.)

United States v. Daniel Glick, No. 17-CR-739 (N.D. Ill.)

On April 17, 2018, the United States District Court for the Northern District of Illinois entered judgments against Daniel H. Glick, a Chicago-based investment adviser, his unregistered investment advisory firm Financial Management Strategies Inc. (FMS), and his accounting firm, relief defendant Glick Accounting Services Inc. (GAS). The SEC had charged Glick and FMS in March 2017 with misappropriating millions from elderly investors who had entrusted Glick and FMS with their retirement savings. According to the SEC's complaint, Glick and FMS provided clients with false account statements that hid Glick's improper use of client funds to pay personal expenses and his improper transfers of funds to two other individuals. The SEC's civil action named GAS as a relief defendant that obtained ill-gotten funds from the fraud. The judgments include permanent injunctive relief, repatriation of assets, and orders to pay disgorgement and civil penalties in amounts to be determined by the Court.

Also on April 17, 2018, Glick was sentenced to 151 months imprisonment, and ordered to pay $5.2 million in restitution in a related criminal action, United States v. Daniel Glick, No. 17-CR-739. The criminal case arises from substantially the same conduct alleged in the SEC's enforcement action.

The Commission acknowledges the assistance of the U.S. Attorney's Office for the Northern District of Illinois, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the DuPage County State's Attorney's Office.

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 and January 22, 2018 litigation releases.