The Federal Bureau of Investigation on November 16, 2011 released the following:
“Earlier today, Daniel Gallagher, a former stockbroker at Vision Securities Inc., was arrested in Boca Raton, Florida, on wire fraud charges contained in a criminal complaint filed in federal court in Brooklyn for his participation in an investment fraud scheme. The defendant’s initial appearance is scheduled before United States Magistrate Judge Linnea R. Johnson, at the U.S. District Court in West Palm Beach, Florida, at 10:00 a.m., on Friday, November 18.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Janice K. Fedarcyk, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office.
According to the government’s complaint, the defendant was formerly a part owner and registered representative of Vision Securities Inc., a broker-dealer with its principal place of business in Port Washington, New York. Between September 2009 and September 2011, the defendant solicited investments in Nano Acquisition Group, LLC (NAG). NAG was formed by the defendant in September 2009 for the stated purpose of acquiring certain assets of Nanodynamics, Inc., a fuel cell technology company that had filed for Chapter 7 bankruptcy in approximately July 2009. The defendant represented in NAG’s offering materials that no fees or salaries would be paid to NAG’s managing members or any NAG employee until at least $1 million was raised and that if the acquisition of Nanodynamics’ assets was unsuccessful, NAG would return the bulk of the investors’ money. However, NAG did not raise $1 million, did not acquire any of Nanodynamics assets, and did not return any of the investors’ money as promised. Instead, the defendant allegedly took for his own personal use more than 90 percent of the money invested by 13 investors. The scheme resulted in approximately $485,000 in losses to the investors.
According to the complaint, Gallagher and Vision Securities were the subject of an earlier and unrelated civil enforcement action by the Securities & Exchange Commission. In approximately August 2009, the SEC obtained a civil judgment in federal court against Gallagher and Vision Securities in which these defendants were ordered to jointly pay a $179,718 judgment. Shortly after this judgment was entered, the Financial Industry Regulatory Authority (FINRA), an independent regulator of securities firms, ordered Vision Securities to cease all securities business because Vision Securities was net capital deficient.
“We are committed to preserving the integrity of the capital markets by aggressively investigating and prosecuting those who defraud investors,” stated United States Attorney Lynch. Ms. Lynch thanked the U.S. Securities & Exchange Commission for its assistance and cooperation in the case.
FBI Assistant Director in Charge Fedarcyk stated, “As alleged, this is a clear case of investment fraud. Gallagher solicited a significant sum for a specified purpose, did not apply it as promised, and failed to return the money. In simple terms, he stole his investors’ money.”
If convicted of wire fraud, the defendant faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Shannon C. Jones.
DANIEL GALLAGHER Age: 46
1 The charges contained in the government’s complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.”
Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:
To find additional federal criminal news, please read Federal Crimes Watch Daily.
Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at email@example.com or at one of the offices listed above.