SEC halts fraud targeting seniors; freeze asset of Chicago investment adviser, company

Linus Unah – Fourth Estate Contributor

Washington, DC, United States (4E) – The U.S. Securities and Exchange Commission (SEC) Monday announced an emergency asset freeze against a Chicago-based investment adviser and his financial management company accused of scamming elderly investors out of millions of dollars.

The SEC alleged that Daniel H. Glick and his ‘unregistered’ investment advisory firm Financial Management Strategies (FMS) provided clients with false account statements to hide Glick’s use of client funds to pay personal and business expenses, purchase a Mercedes-Benz, and pay off loans and debts among other misuses.

According to the SEC’s complaint, Glick was barred by the Financial Industry Regulatory Authority or FINRA in 2014 and had his license revoked for conduct unrelated to today’s SEC charges.

“As alleged in our complaint, Daniel Glick raised millions of dollars from elderly clients by claiming that he would pay their bills, handle their taxes, and invest on their behalf,” said David Glockner, Director of the SEC’s Chicago Regional Office.

“In reality, Daniel Glick used much of their money to do what was best for Daniel Glick.”

The SEC’s complaint also names Glick Accounting Services, Glick’s business partner David B. Slagter, and Glick’s business acquaintance Edward H. Forte as relief defendants to recover client funds that Glick transferred or paid them in the form of advances or loans.

The SEC is urging investors to check the background of anyone offering to sell them investments.

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