Relief Defendant Consents to Return III-Gotten Gains in Fraud Case Against IIIinois Investment Adviser
Litigation Release No. 24527 / July 2, 2019
SEC v. Daniel H. Glick, et al., No. 17-CV-2251 (N.D. Ill.)
On June 20, 2019, the United States District Court for the Northern District of Illinois entered a final judgment by consent against relief defendant David B. Slagter 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 Slagter as a relief defendant, alleging that he received hundreds of thousands of dollars from Glick that had been misappropriated from investors.
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 Slagter and another individual, Edward Forte. The final judgment against Slagter orders that he is liable for disgorgement of $611,064, representing money he received as a result of Glick's violations, along with prejudgment interest of $107,855, for a total of $718,919. However, based on Slagter's financial condition, payment of all but $362,486 of the disgorgement and prejudgment interest was waived. Slagter agreed to the final judgment without admitting or denying the allegations in the complaint.
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. 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.