Another Pozi Scheme-Texas Style

Charles Ponzi long gone but the name continues today to be associated with people like Bernie Madoff. Doc Gallagher the alleged the latest scheme to steal investors and another great reason to protect yourself from really nice and seemingly trustworthy or outstanding members of society.

William "Doc" Gallagher a radio financial advisor well known and liked in Dallas Fort Worth area.

From December 2014 through January 2019, he (Gallagher) raised at least $19.6 million from about 60 senior citizens, the U.S. Securities and Exchange Commission said in a press release. He falsely claimed to be a licensed investment adviser and promised investors they would receive guaranteed, risk-free returns in their accounts.

Bernie Madoff offered secured risk free returns as well. Well liked and in great standing in the community and played off past accomplishments as well as generous gifts to friends and nonprofits.

Both men did not utilize a way to secure money like using Trust Company with check and balances. Both were playing off of personality and community standing as blind trust.

What can investors do to avoid being taken advantage of like some many others have been taken? Where is the money held? What access does the individual advisor have to the funds if any? Who produces the statements and what backing of the statements helps prove the money is where someone says it is? Doing these things will greatly reduce risk and may help eliminate the ability to take money out of secured bucket to pay off others or use funds by the advisor.

There are lots of ways to protect yourself and seeking "fiduciary" trust company or "fiduciary" advisor will help in the process. It saddens me to hear stories of this nature and the losses are often with seniors or near seniors and it totally disrupts their world. The investment industry is built on trust and doing the right thing. Asking better questions will help you be a better steward of the resources entrusted to you.