Relief Defendant in Fraud Case Against Illinois Investment Adviser Is Ordered to Pay More Than $1 Million

Litigation Release No. 24386 / January 29, 2019

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

On January 4, 2019, the United States District Court for the Northern District of Illinois entered a final judgment by default against relief defendant Edward H. Forte in an SEC enforcement action. In March 2017, the Commission charged Daniel H. Glick, a Chicago-based investment adviser, and his unregistered investment advisory firm, Financial Management Strategies Inc. (FMS), with misappropriating millions from elderly investors. The complaint named Forte as a relief defendant, alleging that he received more than $1 million of the money that had been misappropriated from Glick.

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 Forte and another individual. The SEC further alleged that Glick sent more than $1 million to Forte or to third-parties for Forte's benefit.

The final judgment against Forte orders him to pay disgorgement of $1,013,637, representing money he received as a result of Glick's and FMS's violations alleged in the Complaint, along with prejudgment interest of $30,633, for a total of $1,044,270.

On January 9, 2018, Glick pled guilty to one count of wire fraud in a related criminal action, United States v. Daniel Glick, No. 17-CR-739. On April 17, 2018, Glick was sentenced to 151 months imprisonment, and ordered to pay $5.2 million in restitution. The criminal case arises from substantially the same conduct alleged in the SEC's enforcement action. On September 19, 2018, the Court in the SEC action entered final judgments against Glick, FMS and relief defendant Glick Accounting Services, Inc. (GAS), which included permanent injunctions against Glick and FMS and repatriation orders against Glick, FMS and GAS.

For additional information about the SEC action, see the March 29, 2017, April 13, 2017 and April 23, 2018 litigation releases.

For additional information about the criminal action, see the November 21, 2017 and January 22, 2018 litigation releases.