"The Great Chicago Con: Inside the $2M Ponzi Scheme of Former Commodity Trader"

 

Phillip Galles, a former Chicago commodities trader, has been arrested and charged with fraud for allegedly stealing over $2 million from victims through a Ponzi scheme. Galles lied to clients about investing their money in commodity futures, but instead used it to pay off early investors and for his own personal expenses.

Galles' Arrest

Galles was charged with a single count of wire fraud, and a criminal complaint against him was unsealed on Thursday. He appeared in court in Chicago and remains in custody. A lawyer for Galles has not yet been located for comment.

Galles' False Claims

Galles claimed to have a collection of 122 luxury cars and offered phony returns that exceeded 200%. He also falsely claimed to have a firm staffed with former Goldman Sachs employees, with over $275 million under management in the US and $1.7 billion offshore. The Commodity Futures Trading Commission has also sued Galles for his fraudulent activities.

Galles' grandiose claims

Galles allegedly made grandiose claims about his lifestyle, including multiple Lamborghinis and Ferraris, luxurious homes in Chicago, Miami, and London, and possession of paintings by Picasso and Chagall. He also falsely claimed that a well-known owner of a professional sports team and a Kuwaiti sovereign-wealth fund were interested in investing with his firm.

Galles' Interactions with Law Enforcement

Prosecutors say that Galles made many of these claims to undercover law enforcement agents posing as potential investors. When one victim tried to redeem $190,000 of her investment, Galles gave excuses, including that his firm had been the victim of fraud and that he was ill.

Conclusion

Galles' alleged actions are a reminder of the risks of investing with unverified and unregulated individuals or firms. It is important to conduct thorough research and due diligence before investing money. If something seems too good to be true, it probably is. The legal actions against Galles also serve as a warning to others who might be tempted to engage in fraudulent activities. The consequences of such actions can be severe, and justice will be served to those who engage in such activities.