The Texas Preacher Who Used God to Steal | Bloomberg Investigates

Doc Gallagher's Marketing Strategy

• Doc Gallagher, a financial advisor, advertised heavily on Christian radio stations in the Fort Worth area.
• He presented himself as a trustworthy Christian man, emphasizing his faith and using religious language in his advertisements.
• Gallagher's marketing strategy included portraying himself as an independent financial advisor, contrasting his services with those of "big broker" firms.
• He used a friendly and engaging tone in his radio advertisements, making him appear relatable and trustworthy.
• Gallagher's marketing efforts were successful, as he gained the trust of many people in the community, particularly those who were churchgoing and community-minded.
• He even wrote a book titled "Jesus Christ Money Master," further reinforcing his Christian persona.
• Gallagher's marketing strategy was effective in attracting clients, including James and his wife, who were drawn to his Christian values and promises of financial security.

Doc Gallagher's Client Relationships

• Doc Gallagher, a financial planner, presented himself as a friendly and trustworthy individual who cared about his clients.
• He would often show up at his clients' homes on their birthdays with gifts, such as flowers or books.
• Gallagher promised high returns on investments with no downside risk, attracting clients like James and his wife.
• The couple invested a significant amount of their savings with Gallagher, around $750,000.
• Gallagher's clients were generally pleased with him and praised his services.

Investigation into Doc Gallagher's Activities

• However, an investigator working for the Fraud Unit received information about suspicious activity related to Gallagher's clients.
• The investigator discovered that Gallagher was making early withdrawals from an annuity policy belonging to Doris, a 90-year-old woman with dementia.
• Doris's grandson, who was her power of attorney, confirmed that Gallagher was no longer their financial advisor and had no authorization to surrender the annuity.
• The investigator found evidence of large deposits into Gallagher's bank accounts, suggesting a Ponzi scheme.
• A Ponzi scheme involves collecting money from investors and using it to pay earlier investors, rather than investing the funds.
• The investigator's findings led to an investigation into Gallagher's activities.

Doc Gallagher's Seminar and Suspicions

• A person received a postcard inviting them to a seminar hosted by Doc Gallagher at a convention center.
• Doc Gallagher spoke about the shortcomings of Social Security and promoted an alternative investment opportunity.
• The person attending the seminar felt something was off but lacked concrete evidence of wrongdoing.
• The person investigated Doc Gallagher's financial dealings by contacting individuals who had invested with him.
• Many investors lacked documentation of their investments and claimed that Doc Gallagher was a man of God who would not harm them.

James and Carol's Concerns

• A couple, James and Carol, reported that they had increased their withdrawals from Doc Gallagher's fund due to financial hardship.
• James and Carol noticed that their account balance remained unchanged despite the increased withdrawals, raising suspicions.
• Doc Gallagher's demeanor shifted from compassionate to defensive and aggressive when confronted about the discrepancies.
• James and Carol felt threatened by Doc Gallagher and carried concealed weapons for protection.
• The couple reported their concerns to the police, suspecting a Ponzi scheme.

Law Enforcement's Investigation

• A detective investigating the case was initially surprised to learn that Doc Gallagher was the suspect due to his public image as a Christian preacher.
• The detective was excited to investigate the case and determine the extent of the alleged fraud.
• James and Carol felt devastated by the financial losses they incurred.

Doc Gallagher's Past and Accusations

• Doc Gallagher was a financial advisor who lost his license to sell securities in 1999.
• He continued to operate a financial business, Gallagher Financial Group, and was accused of running a Ponzi scheme.
• Victims of the scheme lost significant amounts of money, including one woman who lost $675,000 and felt suicidal.

Doc Gallagher's Arrest and Investigation

• Investigators discovered that Gallagher had been moving money to other banks and had been depositing checks into his own account.
• The Securities and Exchange Commission (SEC) raided Gallagher's office and arrested him.
• Gallagher was charged with defrauding elderly people and was accused of stealing millions of dollars.
• The investigation into Gallagher's activities is ongoing, and more victims have come forward since his arrest.

Doc Gallagher's "Stash House" and Charges

• Investigators searched Doc Gallagher's "stash house" and found a safe that was expected to contain millions of dollars in gold and silver bars.
• The safe was empty, which was a disappointment for law enforcement.
• Doc Gallagher was eventually charged with crimes related to his financial dealings.

Doc Gallagher's Interview and Remorse

• Chris, a journalist, interviewed Doc Gallagher in prison.
• Doc Gallagher claimed that he cared about his clients and that he borrowed money from their accounts to help them in times of need.
• He admitted that he abused the trust of his clients and expressed remorse for his actions.
• Doc Gallagher stated that he wanted the focus to be on the victims and their experiences.

Recovery of Stolen Funds

• Approximately $400,000 of the $750,000 that was stolen was recovered.