Former Visions Securities Stock Broker Charged with Fraud
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’ money," 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.