Daniel Gallagher, a former stockbroker at Vision Securities Inc., was arrested
in Boca Raton last week on charges related to a criminal complaint filed
against him in federal court in Brooklyn. The complaint alleged that Gallagher
participated in an investment fraud scheme that authorities say defrauded
13 investors out of approximately $485,000.
According to the complaint, Gallagher – as a part owner and registered
representative for the New York-based broker-dealer Vision Securities
Inc. – solicited investments over a two year period for a product
he formed in September 2009: Nano Acquisition Group, LLC (NAG).
Gallagher allegedly told investors and potential investors that NAG was
formed to acquire certain assets of Nanodynamics, Inc., a fuel cell technology
company that filed for bankruptcy in summer of 2009. Gallagher also allegedly
represented to investors that no fees or salaries would be paid to managing
members or employees unless and until $1 million had been raised. If $1
million could not be raised, Gallagher allegedly represented, then NAG
would return the bulk of the invested funds to the investors.
According to the complaint, however, Gallagher lied. Allegedly, after Gallagher
failed to acquire any of Nanodynamics’ assets and failed to raise
$1 million for NAG, he decided to take 90 percent of the invested funds
for his personal use. None of the money was returned to the investors.
"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’
stated FBI Assistant Director in Charge Janice K. Fedarcyk in an FBI press release.
Authorities have charged Gallagher with wire fraud. If convicted, he faces
a potential 20 years in prison. He is scheduled to appear today before
United States Magistrate Judge Linnea R. Johnson at the U.S. District
Court in West Palm Beach, Florida.