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NEWARK, N.J. – A Chicago man was arrested as we speak and charged in an funding fraud scheme that defrauded victims of over $2 million, a U.S. Legal professional Philip R. Sellinger introduced.
Phillip Galles, 57, of Chicago, is charged by grievance with one rely of wire fraud. Galles made his preliminary look this afternoon earlier than U.S. Justice of the Peace Choose Gabriel A. Fuentes in Chicago, Illinois, federal courtroom and was detained.
Based on paperwork filed on this case and statements made in courtroom:
Galles, a former commodities dealer, defrauded his victims by falsely claiming that he would make investments their cash in commodity futures by his purported funding firm known as Tyche Asset Administration, primarily based in Chicago. Galles and people working for him falsely instructed potential buyers that Tyche had a historical past of success utilizing proprietary buying and selling methods, with extraordinary annual charges of return exceeding one hundred pc.
Tyche made nearly no authentic investments in commodity futures or in any other case. Galles as an alternative ran Tyche like a Ponzi scheme and used investor cash to pay again different buyers and for his personal private bills.
Galles met in New Jersey with an secret agent purporting to be an funding supervisor trying to make a big funding. Galles falsely claimed that Tyche had annual returns of 336 %, raised over $2 billion inside 60 days of beginning the fund, and had distinguished buyers, together with a Kuwaiti sovereign fund and a widely known proprietor of an expert sports activities crew. Galles additionally falsely claimed that he graduated from a distinguished college within the Midwest.
Galles defrauded greater than a dozen victims out of greater than $2 million.
The rely of wire fraud with which Galles is charged is punishable by a most penalty of 20 years in jail and a positive of $250,000 or twice the gross achieve or loss concerned within the offense, whichever is biggest.
U.S. Legal professional Sellinger credited particular brokers of the U.S. Legal professional’s Workplace, below the route of Particular Agent in Cost Thomas Mahoney in Newark; and the inspectors of the U.S. Postal Inspection Service in Newark, below the route of Postal Inspector in Cost Christopher A. Nielsen, Philadelphia Division, with the investigation resulting in the fees. He additionally thanked the Commodity Futures Buying and selling Fee and the Nationwide Futures Affiliation for his or her help.
The federal government is represented by Assistant U.S. Legal professional Carolyn Silane of the Financial Crimes Unit in Newark.
The cost and allegations contained within the grievance are merely accusations, and the defendant is presumed harmless except and till confirmed responsible.
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