A barred advisor was sentenced to more than 12 years in federal prison for a $5.2 million Ponzi-like scheme that defrauded elderly and handicapped clients, including his in-laws.

Daniel Glick, 65, had pleaded guilty to one charge of wire fraud for forging checks and other documents and using them to lie to his clients about the safety of their investments — even after he had already been barred from the industry by FINRA, according to federal court documents filed in Illinois.

During the scheme, which lasted from 2011 to 2017, Glick used the stolen funds to pay personal and business expenses, including the purchase of a Mercedes-Benz and payments on his mortgage, court documents show.

“The victims have been devastated by the loss of their money," Assistant U.S. Attorney Jacqueline Stern argued in the sentencing memorandum.
“The victims have been devastated by the loss of their money," Assistant U.S. Attorney Jacqueline Stern argued in the sentencing memorandum. Bloomberg News


Most of the money belonged to elderly clients, including his handicapped mother- and father-in-law and two individuals in nursing homes. Glick’s father-in-law had Alzheimer’s and his mother-in-law suffered from a debilitating stroke, according to the documents.

To defraud his family members, Glick sent two fraudulent letters to Citizens Bank — including the forged signatures of his wife and her parents — requesting to cash out their CDs. He eventually misappropriated $443,000 from them. Glick stopped stealing their money only after his family found out about the scheme, and based on their demands, repaid his in-laws with other client funds.

“Criminal conduct was a pervasive part of Glick’s business,” Assistant U.S. Attorney Jacqueline Stern argued in the sentencing memorandum. “The victims have been devastated by the loss of their money.”

Glick was barred by FINRA in March 2014, per FINRA BrokerCheck records, but continued to assert himself as an investment advisor, prosecutors say. His prior firm, Transamerica, fired him the same month, per BrokerCheck.

A pending FINRA dispute is requesting $6.4 million, alleging Glick misappropriated funds, per BrokerCheck.

An attorney for Glick, Mark Flessner, called 12 years a “stiff sentence” for his 65-year-old client.

“Mr. Glick is very regretful for what happened,” Flessner says. “It’s a very sad situation, all around. Many people have lost a lot of money, which has caused great hardship. Mr. Glick invested the money with good intentions, and there is the possibility that some of the money will be returned.”

The 151-month prison sentence handed down was the lowest term recommended by prosecutors, according to court documents. The maximum penalty for wire fraud is 20 years in federal prison.

Sean Allocca

Sean Allocca is an associate editor of Financial Planning, On Wall Street and Bank Investment Consultant.