Gallagher Financial Group Receivership ·

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Update August 28, 2025

On August 28, 2025, the United States Magistrate Judge entered Findings of Fact, Conclusions of Law, and Recommendation to the District Court (the “FC&R”) that the Receiver’s Motion for Summary Judgment against Debbie Carter be granted. Next, the District Court will consider the FC&R and any objections by Carter. This process may take as little as two weeks, or it may take additional months. Once the District Court enters the judgment, the Receiver will request that the Receivership Court apply the judgment against the registry funds and release those funds (totaling approximately $2 million) to the Receiver for distribution to the investors. A copy of the FC&R can be found here.

Update July 30, 2025

On July 30, 2025, the Receiver filed his status report for the Second Quarter of 2025. A copy of the Report may be viewed here. The Receiver’s report for the Third Quarter of 2025 is due on or before October 30, 2025.

Update May 1, 2025

On April 30, 2025, the Receiver filed his status report for the First Quarter of 2025. A copy of the Report may be viewed here.

The Receiver’s report for the Second Quarter of 2025 is due on or before July 30, 2025.

The Receiver also filed his Unopposed Twenty-Fifth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update February 13, 2025***

On February 13, 2025, the Receiver notified the Court that Debbie Carter had not timely responded to the January Motion for Summary Judgement that the Receiver filed in the Carter TSA Case. A copy of the declaration, as well as the accompanying proposed order, may be viewed here.

The same day, the Receiver filed his Unopposed Twenty-Fourth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

Update January 29, 2025

On January 29, 2025, the Receiver filed his status report for the Fourth Quarter of 2024. A copy of the Report may be viewed here.

The Receiver’s report for the First Quarter of 2025 is due on or before April 30, 2025.

Update December 30, 2024

As will be detailed in the Receiver’s next Quarterly Report, which will be filed on or before January 30, 2024, on December 10, 2024, the Comanche County District Court awarded the forfeited gold and silver from Debbie Carter to the Receiver. The Receiver subsequently sold the metals on December 23 for $222,444.72. These funds will be included as part of the final distribution to investors after completion of the Receiver’s efforts to secure approximately $2 million related to Carter that is currently in the registry of the Court. More information on both the forfeiture proceeding and the Receiver’s efforts to secure the registry funds will be included in the Receiver’s next report.

Additionally, on December 27, 2024, the Texas Department of Criminal Justice sent the Receiver the following email:

You are registered in the confidential Integrated Victim Services System (IVSS) to receive notifications on the following offender: GALLAGHER, WILLIAM NEIL , SID #: 17935888, TDCJ #: 02328785. The Texas Department of Criminal Justice (TDCJ) Victim Services Division (VSD) sends our sincere regrets for the criminal victimization you have experienced. It is our goal to assist you in participating in the criminal justice process.

This is to notify you that the TDCJ is processing this offender’s case for review by the Texas Board of Pardons and Paroles (BPP) as of 12/27/2024. The purpose of this review is for the BPP to decide whether or not to release the offender to supervision. Supervision means the offender would serve the remainder of their sentence in the community under the supervision of a parole officer. Typically, these reviews are completed within two to six months from the date of this notification. However, the review period may take longer. Factors that may affect the review period are the length of time the offender has been incarcerated or the statute that requires all Board members to vote in specific cases.

We acknowledge how difficult it may be for you to write about the effects of this crime, but you are welcome to submit letters that would help the BPP understand how the offense has affected you. To ensure your input is received prior to voting the case, we ask that you respond to our office as soon as possible by email, mail, or fax at the contact information listed below. Please reference the TDCJ or SID number when submitting material. Mailed letters should be addressed to the Victim Services Division, Attention: Correspondence. We suggest maintaining copies of submitted material as it will remain in the offender’s permanent file for future reviews and be kept confidential. Any input you provide will be given consideration by the BPP before a final decision is made. As soon as BPP has reached a decision, we will notify you.

Some registration options are available to statutory victims only such as speaking with BPP during an offender’s review process. If you have not had an opportunity to discuss registering for these options with one of our representatives, please contact our office for assistance.

If you are aware of others who have an interest in this case, please encourage them to contact the TDCJ VSD at 1-800-848-4284 or victim.svc@tdcj.texas.gov.

If you have questions or would like to remove yourself from future notifications, please contact the TDCJ VSD Hotline: at 800-848-4284, victim.svc@tdcj.texas.gov, or 8712 Shoal Creek Boulevard, Suite 265, Austin, Texas 78757-6899. To update your account or your registration information, view FAQs, and access helpful resources, please visit our website at https://ivss.tdcj.texas.gov. By providing your most up to date contact information, TDCJ VSD will be able to provide you with more timely notifications. All contact information provided to TDCJ VSD is kept completely confidential.

The Receiver understands that many investors would like to submit statements for consideration by the Texas Board of Pardons and Paroles. For ease of reference, any investors who wish to provide a statement, may submit a letter addressed as follows:

To: The Texas Board of Pardons and Paroles

Re: Parole Review by Texas BPP of William Neil Gallagher, TDCJ #: 02328785

Dear Sir or Madam,

I am an investor who has been impacted by Doc Gallagher’s Diversified Growth and Income Strategies Account Ponzi Scheme. I write to inform you that I am [opposed/unopposed] to the release of Mr. Gallagher under parole at this time. [Explain why you are opposed or unopposed to Defendant Gallagher’s release at this juncture].

Sincerely,

[Investor’s Signature]

[Investor’s Name]

Letters may be submitted to one of two places. First, they can be submitted directly to the Texas Board of Pardons and Paroles, via email (victim.svc@tdcj.texas.gov), fax (512-452-0825), or U.S. Mail (TDCJ Victim Services Division, Attention: Analyst, 8712 Shoal Creek Blvd, Suite 265, Austin, TX 78757-6899). Alternatively, the Tarrant County District Attorneys’ Office is also currently gathering statements from investors. Letters can be sent via email (ldparker@tarrantcountytx.gov) or U.S. Mail (Tarrant County Criminal District Attorney’s Office, Attn: Lori L. Varnell, 401 W. Belknap – 9th Floor, Fort Worth, TX 76196).

The Receiver does not currently have any information regarding Defendant Gallagher’s health condition or his likelihood of receiving parole. However, the Receiver has submitted information to the Texas Department of Pardons and Paroles and has requested status updates from the Board, as well as any information that the Board is able to disclose. Updates will be published on this website and in future quarterly reports.

***Update October 30, 2024***

On October 30, 2024, the Receiver filed his status report for the Third Quarter of 2024. A copy of the Report may be viewed here.

The Receiver’s report for the Fourth Quarter of 2024 is due on or before January 30, 2025.

The same day, the Receiver also filed his unopposed fee application for the Fourth Quarter of 2024. A copy of the fee application may be viewed here.

***Update August 14, 2024***

On August 14, 2024, the Receiver filed his Unopposed Twenty-Second Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update July 30, 2024***

On July 30, 2024, the Receiver filed his status report for the Second Quarter of 2024. A copy of the Report may be viewed here.

Debbie Carter’s sentencing hearing began on July 29, 2024, and concluded on July 30, 2024. Additional investors testified at this hearing, which lasted all afternoon on July 29 and much of the morning on July 30. At the conclusion of the hearing, the Judge sentenced Carter to life in prison.

***Update July 9, 2024***

Debbie Carter’s sentencing has been set for 1:30 pm on Monday, July 29, 2024 at the Tarrant County Criminal District Court No. 1. The courtroom is located on the Fifth Floor of the Tim Curry Criminal Justice Center, 401 W. Belknap, Fort Worth, TX 76196-0256. The sentencing hearing will be open to the public, and any investor who would like to attend is welcome to do so. Because there is a chance that the hearing will be rescheduled, please continue to check the receivership website to updates and to confirm the sentencing hearing is proceeding on July 29.

***Update July 8, 2024***

Testimony in the criminal trial of Debbie Carter, which began on June 25, concluded on July 8. After brief deliberations, the jury returned a verdict of guilty this afternoon. The Court has ordered the preparation of a pre-sentence report (“PSR”). Once the PSR is complete (estimated in the next few weeks), a sentencing hearing will be scheduled. Although the date and time of the sentencing hearing is not yet known, notice will be posted on the Receivership Website as soon as it is available. All investors are welcome to attend sentencing.

The Receiver will provide further updates in his next Quarterly Report, which is due to be filed on or before July 30, 2024.

***Update June 26, 2024***

The criminal trial of Debbie Carter began on June 24, 2024. The Receiver began testifying on June 25 and will continue testifying on June 26. The case is scheduled to conclude during the week of July 8. An additional update will be posted at the conclusion of the criminal trial.

***Update May 13, 2024***

On May 13, 2024, the Receiver filed his Unopposed Twenty-First Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update April 30, 2024***

On April 30, 2024, the Receiver filed his status report for the First Quarter of 2024. A copy of the Report may be viewed here.

***Update March 27, 2024***

The criminal trial of Debbie Carter has been rescheduled again—from April 15, 2024 to June 24, 2024. The Receiver will be filing his next Quarterly Report on or before April 30, 2024.

***Update March 26, 2024***

On March 26, 2024, the Receiver filed his unopposed Twentieth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update January 30, 2024***

On January 30, 2024, the Receiver filed his status report for the Fourth Quarter of 2024. A copy of the Report may be viewed here.

***Update January 23, 2024***

The criminal trial of Debbie Carter, has been rescheduled again, this time being moved from February 12, 2024 to April 15, 2024 . The Receiver will be filing his next Quarterly Report on or before January 30, 2024.

***Update January 17, 2024***

The criminal trial of Debbie Carter, has been rescheduled again, this time being moved forward from February 26, 2024, to February 12, 2024 . The Receiver will be filing his next Quarterly Report on or before January 30, 2024.

***Update January 11, 2024***

The criminal trial of Debbie Carter, which is described in Receiver’s July 31 Status Report (available here) and October 30 Status Report (available here) has been continued by one month, from January 22, 2024, to February 26, 2024. The Receiver will be filing his next Quarterly Report on or before January 30, 2024.

***Update November 14, 2023***

On November 14, 2023, the Receiver filed his unopposed Nineteenth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update October 30, 2023***

On October 30, 2023, the Receiver filed his status report for the Third Quarter of 2023. A copy of the Report may be viewed here.

***Update September 7, 2023***

The criminal trial of Debbie Carter, which is described in Receiver’s July 31 Status Report (available here) has been continued. The trial is now scheduled for January 22, 2024.

***Update August 14, 2023***

On August 14, 2023, the Receiver filed his unopposed Eighteenth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update July 31, 2023***

On July 31, 2023, the Receiver filed his status report for the Second Quarter of 2023. A copy of the Report may be viewed here.

***Update May 15, 2023***

On May 15, 2023, the Received filed his unopposed Seventeenth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update April 30, 2023***

On April 30, 2023, the Receiver filed his status report for the First Quarter of 2023. A copy of the Report may be viewed here.

The deadline for the Receiver to file his next report is July 30, 2023.

***Update February 16, 2023***

On February 16, 2023, the Receiver was notified that the Texas Department of Criminal Justice Board of Pardons and Paroles “has denied consideration for the Medically Recommended Intensive Supervision (MRIS) review for” Defendant Gallagher.

***Update February 16, 2023***

On February 16, 2023, the Receiver filed his Motion to Approve Settlement Agreement with Matthew Gallagher. A copy of the Motion, including the Settlement Agreement, are available here.

***Update February 14, 2023***

On February 14, the Receiver filed his unopposed Sixteenth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Updated January 27, 2023***

On January 27, 2022, the Receiver filed his status report for the Fourth Quarter of 2022. A copy of the Report may be viewed here.

The deadline for the Receiver to file his next report is April 30, 2023.As detailed in the Quarterly Report, on January 26, 2022, the Receiver was notified that Defendant Gallagher, who to the Receiver’s knowledge currently remains incarcerated in Navasota, Texas, is “currently being reviewed by the Texas Department of Criminal Justice to determine if [Gallagher] meet[s] the criteria for Medically Recommended Intensive Supervision (MRIS) consideration.” According to the Texas Department of Criminal Justice,

[MRIS] provides for possible early parole review and release of an offender. This review does not mean the offender will be granted parole; each release must be approved by a Board panel. The MRIS process represents an effort to identify seriously impaired offenders and decide whether to release them to a more appropriate environment with supervision, provided such release does not constitute a threat to public safety.

An offender may become eligible for MRIS review by a parole panel if: (1) an offender is identified as being elderly, physically disabled, mentally ill, terminally ill, mentally retarded, or having a condition requiring long-term care, in a persistent vegetative state or being a person with organic brain syndrome with significant to total mobility impairment; (2) the parole panel determines that, based on the offender’s condition and medical evaluation, the offender does not constitute a threat to public safety; and (3) a medically recommended intensive supervision plan that requires the offender to submit to electronic monitoring, places the offender on Super Intensive Supervision (SISP), or otherwise ensures appropriate supervision of the offender. This information can be found in Article 508.146(3) of the Texas Government Code.

The Texas Board of Pardons and Paroles can review an MRIS case within just a few days, however, reviews are typically conducted within 2-3 weeks. If you wish to protest the release of this offender, you must do so immediately in writing upon receipt of this notification. We will notify you as soon as the parole panel has reached a decision. You may submit your protest in writing by email to victim.svc@tdcj.texas.gov, by fax to 512-452-0825, or by mail – TDCJ Victim Services Division, Attention: Analyst, 8712 Shoal Creek Blvd, Suite 265, Austin, TX 78757-6899.

To: The Texas Board of Pardons and Paroles

Re: MRIS Consideration of William Neil Gallagher, TDCJ #: 02328785

Dear Sir or Madam,

I am an investor who has been impacted by Doc Gallagher’s Diversified Grown and Income Strategies Account Ponzi Scheme. I write to inform you that I am [opposed/unopposed] to the early release of Mr. Gallagher under the MRIS program. [Explain why you are opposed or unopposed to Defendant Gallagher’s release at this juncture].

Sincerely,

[Investor’s Signature]

[Investor’s Name]

The Receiver does not currently have any information regarding Defendant Gallagher’s health condition or his likelihood of receiving MRIS. However, the Receiver has submitted information to the Texas Department of Pardons and Paroles and has requested status updates from the Board, as well as any information that the Board is able to disclose. Updates will be published on this website and in future quarterly reports.

———————————————-

***Updated December 14, 2022***

On December 14, 2022, the Receiver mailed out third interim distribution payments to all investors with approved claims. A copy of the letter accompanying these checks is available here.

***Updated November 3, 2022***

This week, the Court approved the Receiver’s request for approval of the Salem settlement agreement. Payment will be made by Salem to the receiver within the next 30 days. The Receiver then anticipates mailing interim distribution checks in mid-December 2022. Similar to prior distributions, the Receiver will update this website to notify investors when the checks are put in the mail.

On November 3, 2022, the Receiver filed his unopposed Fifteenth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update October 27, 2022***

On October 27, 2022, the Receiver filed his status report for the Third Quarter of 2022. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is January 30, 2023.

***Update October 13, 2022***

On October 13, 2022, the Receiver filed a Motion to Approve Settlement Agreement with Salem Media Group, Inc., Inspiration Media of Texas, Inc., Bison Media, Inc., and Mark Davis (collectively, the “Salem Parties”). Based on the Receiver’s investigation of the Gallagher Defendants, the Receiver, in his capacity as the Receiver, and as Assignee of the Investors, on February 26, 2020, filed suit against the Salem Parties, asserting claims against the Salem Parties for fraudulent transfer, money had and received, aiding and abetting securities fraud under the Texas Securities Act, and negligent misrepresentation. In response, the Salem Parties denied the allegations of the Receiver and denied any liability owing to the Receiver or to the Receiver, as Assignee.

On September 26, 2022, the parties successfully mediated their dispute. The Salem Parties have agreed to pay the Receivership a total of $5,325,000 in exchange for a full and complete release of claims by the Receiver, both in his capacity as the court-appointed Receiver and as assignee of assigning investors. The payment will be made within thirty-five days after the Court approves the Settlement Agreement between the parties.

As detailed more fully in the Motion to Approve Settlement Agreement, the Receiver believes that this settlement is in the best interest of the assigning investors because, among other things,

The Salem Parties contend that they merely sold advertising to the Defendants, had no knowledge of or involvement in the Defendants’ wrongful or illegal conduct, and had no duty to investigate prior to airing the Defendants’ advertisements.
As to the Receiver’s claim for aiding and abetting under the Texas Securities Act, the Salem Parties contend that they did not have subjective awareness of or provide substantial assistance to the Defendants’ securities fraud. The Salem Parties also contend that there was no causal nexus between the Salem Parties’ providing broadcast services in the ordinary course of their business operations and the Defendants’ misuse of investor funds.
As to the Receiver’s negligent misrepresentation claim, the Salem Parties deny that they owed any duty to the Investors or failed to exercise reasonable care in broadcasting advertisements for the Defendants. The Salem Parties also contend that some or all of the Investors did not hear their advertisements, that the advertisements did not contain misrepresentations, and that the Investors did not justifiably rely on the advertisements.
As to the Receiver’s fraudulent transfer claim, the Salem Parties contend that the funds they received from the Defendants were solely for radio advertising services and that the Salem Parties provided reasonably equivalent value in good faith.
The Salem Parties contend that the Receiver cannot substantiate his alleged damages or establish a causal link between those damages and the Salem Parties’ acts.
The Salem Parties contend that some or all of the Receiver’s damages are barred by the statute of limitations.
The Salem Parties contend that they were not the cause of any investor losses and/or that third parties bear responsibility for any losses.

Copies of the motion, settlement agreement, and proposed mutual release are available here. A letter being sent to the assigning investors is available here. If you are an assigning investor who, after reviewing the motion and settlement agreement, objects to the Ciera settlement, please respond in writing to the Receiver as soon as possible.

***Update August 29, 2022***

On August 29, 2022, Judge Montgomery denied both of Salem’s motions for summary judgment. The case is currently set for trial on October 17, 2022.

***Update August 23, 2022***

Multiple investors have contacted the Receiver seeking an update on the status of the Salem litigation. A brief update is provided below, as well as links to recent filings that provide detail on the Receiver’s claims.

On February 26, 2020, the Receiver filed suit against Salem Media Group, Inc. (“Salem”) and Mark Davis in Dallas County Court at Law No. 3. On April 28, 2020, the Receiver filed an amended petition that also includes two of Salem’s affiliates—Inspiration Media of Texas, LLC and Bison Media, Inc.—as defendants in the case (together with Salem and Davis, the “Salem Defendants”). The Receiver, who has sued both in his capacity as Receiver and as assignee, alleges, among other things, that the Salem Defendants provided material aid to the Gallagher Defendants’ Ponzi scheme and that Salem was reckless in allowing Gallagher to solicit investors through broadcasts from Salem’s radio stations for Gallagher’s Ponzi Scheme. The Receiver has asserted claims for (1) aiding and abetting under the Texas Securities Act, (2) negligent misrepresentation, and (3) fraudulent transfer. Trial is currently set for the week of October 17, 2022.

The Salem Defendants have asked the Court to dismiss each of the Receiver’s claims by filing two separate motions for summary judgment, arguing that the Receiver has “no evidence” to support his claims. On August 22, 2023, counsel representing the Receiver filed responses to both motions for summary judgment. The first response, a copy of which is available here, provides examples of the evidence the Receiver has to support his claims for aiding and abetting under the Texas Securities Act and negligent misrepresentation. The second response, a copy of which is available here, provides examples of the evidence the Receiver has to support his claims for fraudulent transfer. Because these responses detail evidence the Receiver and his team have gathered in the course of the Salem litigation, they provide useful summaries of the lawsuit and are a worthwhile read for any investor.

A hearing on the Salem Defendants’ motions for summary judgment will occur in the near future. While it is impossible to predict whether or not the motions will be granted, the Receiver and his team are very optimistic that the Salem Defendants’ efforts to dismiss the case will be unsuccessful and that the case will proceed to trial.

***Update August 14, 2022***

On August 14, 2022, the Receiver filed his unopposed Fourteenth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update July 28, 2022***

On July 28, 2022, the Receiver filed his status report for the Second Quarter of 2022. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is October 30, 2022.

***Update May 15, 2022***

On May 15, 2022, the Receiver filed his unopposed Thirteenth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update April 29, 2022***

On April 29, 2022, the Receiver filed his status report for the First Quarter of 2022. A copy of the report may be viewed here. The deadline for the Receiver to file his next report is July 30, 2022.

***Update February 24, 2022***

On February 22, 2022, the United States District Court for the Northern District of Texas granted the Receiver’s request for leave to file claims against Debbie Carter. The Receiver filed his Complaint against Carter the same day. A copy of the Complaint is available here. The Complaint stems from the Receiver’s continued investigation into Ms. Carter related to her indictment by the District Attorneys’ Office in 2021. On September 22, 2021, the Receiver filed a Motion for “Show Cause” Hearing to Hold Non-Party Debra Carter in Civil Contempt and for Sanctions, or in the Alternative, Motion to Set Aside Settlement Agreement and Mutual Release, Motion for Disgorgement, and Brief in Support (the “Contempt Motion”). A copy of the Contempt Motion is available here. On January 11, 2022, the Court entered an Interpleader Order regarding certain disputed funds. A copy of the original Interpleader Order is available here. The Receiver filed a Motion to Amend Interpleader Order on February 17, 2022. A copy of the Motion to Amend is available here. The Motion was granted on February 22, 2022. As of that date, $1.1 million had currently been deposited with the Registry of the Court. The Receiver’s dispute with Ms. Carter as to these funds will be resolved after the completion of her criminal trial, which is currently set for May 2022.

***Update February 14, 2022***

On February 14, 2022, the Receiver filed his unopposed Twelfth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Updated January 31, 2022***

On January 30, 2022, the Receiver filed his status report for the Fourth Quarter of 2021. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is April 30, 2022.

***Updated November 11, 2021***

On November 11, 2021, the Receiver filed his unopposed Eleventh Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Updated November 2, 2021***

On November 1, 2021, Tarrant County District Judge Elizabeth Beach sentenced W. Neil “Doc” Gallagher to three life sentences in prison, plus an three additional ten-year sentences, all to be served concurrently. Copies of the judicial confessions, plea agreements, and judgments will be available on the Receivership Website when made available to the Receiver.

***Updated October 29, 2021***

On October 29, 2021, the Receiver filed his status report for the Third Quarter of 2021. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is January 30, 2022. As of the time of this posting, Doc Gallagher’s sentencing in Tarrant County is still scheduled for Monday, November 1, at 1:30 pm (see details below). If you are planning to attend, please continue to monitor this website for any changes to the date/time.

***Update October 13, 2021***

Doc Gallagher’s sentencing hearing has been rescheduled to Monday, November 1, 2021 at 1:30 pm in Courtroom CDC-1 on the 5th Floor of the Tim Curry Criminal Justice Center, 401 W. Belknap, Fort Worth, TX 76196-7213. All investors are welcome to attend. If an investor wishes to attend the criminal sentencing, they should contact the Tarrant County District Attorneys’ Elder Financial Fraud Section at 817-884-1826. Because of ongoing COVID restrictions, space in the courtroom may be limited. The date and time of the sentencing hearing is once again subject to change, so please continue to monitor this website.

***Update October 5, 2021***

W. Neil “Doc” Gallagher recently pleaded guilty to pending criminal charges in Tarrant County, Texas. His sentencing hearing is currently scheduled for Monday, November 15, 2021 at 1:30 pm in Courtroom CDC-1 on the 5th Floor of the Tim Curry Criminal Justice Center, 401 W. Belknap, Fort Worth, TX 76196-7213. All investors are welcome to attend. If an investor wishes to attend the criminal sentencing, they should contact the Tarrant County District Attorneys’ Elder Financial Fraud Section at 817-884-1826. Because of ongoing COVID restrictions, space in the courtroom may be limited. The date and time of the sentencing hearing is subject to change, so please continue to monitor this website.

***Update August 11, 2021***

On August 11, 2021, the Receiver filed his unopposed Tenth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update July 30, 2021***

On July 30, 2021, the Receiver filed his status report for the Second Quarter of 2021. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is October 30, 2021

***Update May 17, 2021***

On May 12, 2021, a Tarrant County Grand Jury indicted Debra Mae Carter for the misappropriation of property from certain Gallagher investors between January 1, 2013 and March 8, 2019. Copies of the indictments can be accessed here.

On or about March 12, 2021, the DA’s office executed a search warrant on Ms. Carter and discovered, among other things, approximately $200,000 in gold and silver. A forfeiture proceeding has been filed in Comanche County, a copy of which can be accessed here. The Receiver has filed an answer in the forfeiture proceeding, arguing, among other things, that the seized gold and silver never rightfully belonged to Ms. Carter, came from Gallagher’s safe at the Secret Office Gallagher and Carter maintained on Pipeline Road in Hurst, and should be returned to the defrauded investors. A copy of the Receiver’s answer is available here. Ms. Carter is protesting the forfeiture proceeding, and there is no guarantee that the Receiver will be successful in his efforts to recover the seized metals for the investors. However, the Receiver and his team are hopeful that their efforts will be successful. Additional updates will be included in future quarterly reports and on the Receivership website.

*** Update May 15, 2021***

On May 15, 2021, the Receiver filed his unopposed Ninth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update April 30, 2021***

On April 30, 2021, the Receiver filed his status report for the First Quarter of 2021. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is July 30, 2021. If you have not done so already, please deposit any as-yet-undeposited interim distribution payments.

***Update February 12, 2021***

On February 12, 2021, the Receiver filed his unopposed Eighth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update February 12, 2021***

The Receiver has been contacted by several investors who have not yet received their second interim distribution payments, which were mailed out on January 28. Unfortunately, the US Postal Service reports that it has been experiencing continued delays due to COVID-19. If you do not receive your second interim distribution payment by the end of next week (2/19), please feel free to contact my office if you would like for us to cancel your check and re-issue another way. Also, please let our office know if you have changed your address in the past six months. We can be reached via email (GallagherFinancial.receivership@brownfoxlaw.com) or phone (469.893.9960).

***Update January 29, 2021***

On January 29, 2021, the Receiver filed his status report for the Fourth Quarter of 2020. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is April 30, 2021.

***Update January 27, 2021***

On January 27, 2021, the Receiver mailed out second interim distribution payments to all investors with approved claims. A copy of the letter accompanying these checks is available here.

***Update December 10, 2020***

On December 10, 2020, the Receiver filed a Motion to Approve Settlement Agreement with Ciera Bank (“Ciera”). Based on the Receiver’s investigation of the Gallagher Defendants, the Receiver, in his capacity as the Receiver, and as Assignee of the Investors, on December 4, 2019 filed suit against Ciera for aiding and abetting securities fraud in violation of the Texas Securities Act, negligence, and fraudulent transfer. In response, Ciera denied the allegations of the Receiver, denied any liability owing to the Receiver or to the Receiver, as Assignee, and sought to move the case to Young County, Texas.

On November 9, 2020, the parties successfully mediated their dispute. Ciera has agreed to pay the Receivership a total of $1,250,000 in exchange for a full and complete release of claims by the Receiver, both in his capacity as the court-appointed Receiver and as assignee of assigning investors. The payment will be made within thirty days after the Court approves the Settlement Agreement between the parties.

The Receiver believes that this settlement is in the best interest of the assigning investors because, among other things, (1) as to the Receiver’s fraudulent transfer claims, Ciera claims it did not exercise dominion and control of any funds it received from Defendants for the issuance of cashier’s checks, and therefore denies it has any liability for the receipt of alleged fraudulent transfers; (2) as to the Receivers’ claim for money had and received, Ciera turned over to the Receiver—in response to the Receivership Order—all monies it was holding in the accounts controlled by the Defendants, and thus argues the Receiver has no claim for money had and received; (3) as to the Receiver’s claim for negligence, Ciera contends any negligence claim is barred or at the very least significantly diminished by the contributory negligence of the Defendants; (4) as to the Receiver’s claims for aiding and abetting under the Texas Securities Act, Ciera contends, among other things, it did not have subjective awareness of the Defendants’ operation of a Ponzi scheme; (5) Ciera contends it was not the cause of any investor losses; and (6) Ciera denies any liability to the Receiver.

***Update November 19, 2020***

On November 19, 2020, the Receiver filed a Motion to Approve Settlement Agreement with the Institute for Wealth Advisors, Inc., f/k/a Cherry Investment Advisors, Ltd., the Institute for Wealth Holdings, Inc., f/k/a Cherry, Inc., and the Institute for Wealth Management, LLC (collectively, the “Cherry Parties”) and Dewey M. Moore, Jr. (“Moore”). Based on the Receiver’s investigation of the Gallagher Defendants, the Receiver, in his capacity as the Receiver, and as Assignee of the Investors, on April 24, 2020 filed suit against the Cherry Parties and Moore for aiding and abetting securities fraud in violation of the Texas Securities Act, negligence and negligent supervision, and breach of fiduciary duties. In response, the Cherry Parties and Moore denied the allegations of the Receiver and denied any liability owing to the Receiver or to the Receiver, as Assignee.

On September 29, 2020, the parties successfully mediated their dispute. The Cherry Parties have agreed to pay the Receivership a total of $350,000 in exchange for a full and complete release of claims by the Receiver, both in his capacity as the court-appointed Receiver and as assignee of assigning investors. The payment will be made within thirty days after the Court approves the Settlement Agreement between the parties.

The Receiver believes that this settlement is in the best interest of the assigning investors because, among other things, (1) the Cherry Parties and Moore did not receive any funds from Defendants, whether in the form of commissions, gifts, or otherwise; (2) the Cherry Parties and Moore contend that they were not the cause of any investor losses; (3) the Cherry Parties and Moore argue that they did not substantially assist the DGI Ponzi Scheme because they did not refer customers to Gallagher; rather Gallagher was the one who referred pre-existing DGI investors to invest with the Cherry Parties and Moore; (4) the Cherry Parties and Moore deny that they had any responsibility to supervise investments made with Gallagher outside of the Cherry Parties and Moore; (5) the Cherry Parties provided information to the Receiver to consider regarding the potential collectability of any judgment the Receiver might obtain, which included information regarding the limits of the insurance policy for the Institute Parties and other claims made against such policy, which reduced the aggregate limit available to pay claims; and (6) the Cherry Parties and Moore deny any liability to the Receiver.

Copies of the motion, settlement agreement, and proposed mutual release are available here. A letter being sent to the assigning investors is available here. If you are an assigning investor who, after reviewing the motion and settlement agreement, objects to the Cherry/Moore settlement, please respond in writing to the Receiver as soon as possible.

**Update November 13, 2020***

On November 12, 2020, the Receiver filed his unopposed Seventh Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update October 30, 2020***

On October 30, 2020, the Receiver filed his status report for the Third Quarter of 2020. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is January 30, 2021.

***Update October 9, 2020***

On October 5, 2020, Judge Cummings entered an Order authorizing the Receiver to sell the Weatherford Property. A copy of the Order can be found here. As will be detailed in the Receiver’s upcoming Quarterly Report, no real estate remains to be sold. As will also be detailed in the Quarterly Report, the Receiver’s lawsuits against certain third-parties remain pending.

***Update September 8, 2020***

On September 8, 2020, Magistrate Judge David Horan entered an order appointing three appraisers in connection with the sale of the Weatherford Property and accepting their appraisals. A hearing regarding confirmation of the sale of the Weatherford Property for $300,000 will be held on September 30, 2020 at 10 a.m. via videoconference. The Receiver will also post notice of the sale by publication, which will include notice of the time and date of the video hearing and instruct those interested in attending the hearing to obtain from the Receiver the details for participating in the video hearing. A copy of the Order can be accessed here. Details regarding the Receiver’s motion are included in his September 3, 2020 update below.

***Update September 3, 2020***

On September 3, 2020, the Receiver filed his Motion for Appointment of Appraisers, Approval of Appraisals of Certain Real Property and Setting Hearing Regarding Approval of Sale of Weatherford Property. In connection with his settlement with D. Carter in the Fall, three properties were transferred to the Receiver—the Stephenville Property, Weatherford Property, and Dublin Ranch. The Stephenville Property and Dublin Ranch have already sold. The Receiver recently entered into a contract to sell the Weatherford Property for $300,000. Pursuant to 28 U.S.C. § 2001, the Receiver obtained three independent appraisals, which indicate that the fair market value of the property is approximately $341,666. The Receiver believes that the sales price of $300,000, while less than the appraised fair market value, is in the best interest of the receivership because (1) the property has already been listed for sale for several months (and already had a prior buyer cancel his contract during the option period), (2) the current pandemic adds uncertainty to the present and future real estate markets, (3) the Weatherford Property needs extensive repairs and renovations and may even need to be torn down, which limits the buyer pool, and (4) the sales price greatly exceeds the statutory minimum price (2/3 of appraised value). A copy of the Motion is available here. The Court will set a hearing on the Motion at a later date. Notice of the hearing will be posted on the Receivership Website.

***Update August 24, 2020***

On August 24, 2020, Judge Cummings entered an Order authorizing the Receiver to sell the Dublin Ranch. A copy of the Order can be found here. The Receiver and his real estate brokers are still actively selling the Weatherford Property and have already sold the Stephenville Property and the Gallagher Home. Further information regarding these properties can be found in the Receiver’s prior quarterly reports.

***Update August 13, 2020***

On August 12, 2020, the Receiver filed his unopposed Sixth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update July 30, 2020***

On July 30, 2020, the Receiver filed his status report for the Second Quarter of 2020. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is October 30, 2020.

***Update July 21, 2020***

On July 21, 2020, Magistrate Judge David Horan entered an order appointing three appraisers in connection with the sale of the Dublin Ranch and accepting their appraisals. A hearing regarding confirmation of the sale of the Dublin Ranch for $2,837,544 (net benefit to the Receivership Estate of approximately $250,000-$300,000) will be held on August 18, 2020 at 10 a.m. via videoconference. The Receiver will also post notice of the sale by publication, which will include notice of the time and date of the video hearing and instruct those interested in attending the hearing to obtain from the Receiver the details for participating in the video hearing. A copy of the Order can be accessed here. Details regarding the Receiver’s motion are included in his July 16, 2020 update below.

***Update July 16, 2020***

On July 15, 2020, the Receiver filed his Motion for Appointment of Appraisers, Approval of Appraisals of Certain Real Property and Setting Hearing Regarding Approval of Sale of Dublin Property. In connection with his settlement with D. Carter in the Fall, three properties were transferred to the Receiver. One of these properties (the Stephenville Property) has already sold, while another (the Weatherford Property) is still currently listed for sale. The Receiver engaged a real estate broker, who has been actively marketing the Dublin Property since December 2019. On July 8, the Receiver entered into a contract to sell the Dublin Property for $2,837,544. Net payoff of the assumed loan on the property and anticipated expenses, the Receiver anticipates a net benefit to the Receivership Estate of approximately $250,000-$300,000. Pursuant to 28 U.S.C. § 2001, the Receiver obtained three independent appraisals, which indicate that the fair market value of the property is approximately $3,019,666.66. The Receiver believes that the sales price of $2,837,544, while less than the appraised fair market value, is in the best interest of the receivership because (1) the property has already been listed for sale for multiple months, (2) the current pandemic continues to add uncertainty to the present and future real estate markets, and (3) the sales price exceeds the statutory minimum price (2/3 of appraised value) by over $800,000. A copy of the Motion is available here. The Court will set a hearing on the Motion at a later date. Notice of the hearing will be posted on the Receivership Website.

***Update July 7, 2020***

On July 6, the Court granted the Receiver’s July 1 Application for Interim Distribution to Investors, authorizing the Receiver to make an initial distribution provided that no appeals of the Court’s Final Claims Order are filed on or before August 21. A copy of the Order is available here.

***Update July 1, 2020***

On July 1, 2020, the Receiver filed an Application for Interim Distribution, in which the Receiver seeks the Court’s permission to make an initial distribution of 7% to investors with approved claims on or after August 21, 2020. A copy of the Application, along with its attached First Proposed Investor Distribution Report is available here. While the Receiver originally anticipated that the initial distribution would be 8%, unfortunately closing on one property has been delayed and another property’s anticipated sale has fallen through. Once the remaining properties are sold and/or our lawsuits against third parties are settled, the Receiver will make additional distributions as appropriate.

***Update June 23, 2020***

On June 22, 2020, the Court entered its Final Claims Order, which adopts the Findings, Conclusions, and Recommendation of Magistrate Judge David Horan, overrules all objections, and incorporates the previously submitted Final Revised Claim Summary Reports. A copy of the Final Claims Order is available here. A copy of the Final Revised Investor Claim Summary Report is available here. A copy of the Final Revised Creditor Claim Summary Report is available here. A copy of the Final Revised Life Settlement Investor Claim Summary Report is available here. As detailed more fully in the Receiver’s May 19 letter discussed below, the Receiver anticipates filing a motion with the Court seeking permission to make an interim distribution of approximately 8% of each investors’ approved claims amount. The Receiver anticipates mailing out interim distributions on our about August 21, 2020.

***Update May 19, 2020***

On May 19, 2020, the Receiver mailed out an update letter to DGI investors regarding the status of the Receivership and next steps moving forward. A copy of the letter is available here.

***Update May 13, 2020***

On May 13, 2020, the Receiver filed his Motion for Appointment of Appraisers, Approval of Appraisals of Certain Real Property and Setting Hearing Regarding Approval of Sale of Weatherford Property. However, on May 15, the buyer terminated the contract during the contract’s option period. Accordingly, the Receiver has withdrawn the motion and instructed his broker to continue marketing the property.

***Update May 12, 2020***

On May 12, 2020, Magistrate Judge David Horan entered an order appointing three appraisers in connection with the sale of the Gallagher Home and accepting their appraisals. A hearing regarding confirmation of the sale of the Gallagher Home for $420,000 will be held on June 9, 2020 at 10 a.m. via videoconference. The Receiver will also post notice of the sale by publication, which will include notice of the time and date of the video hearing and instruct those interested in attending the hearing to obtain from the Receiver the details for participating in the video hearing. A copy of the Order can be accessed here. Details regarding the Receiver’s motion are included in his May 6, 2020 update below.

***Update May 8, 2020***

On May 8, 2020, the Receiver filed his unopposed Fifth Quarterly Fee Application. A copy of the Fee Application can be accessed here.

***Update May 8, 2020***

On May 7, 2020, the Receiver filed a Motion to Approve Settlement Agreement with KMS Financial Services, Inc. (“KMS”) and Drew Springer, Sr., individually and doing business as Springer Financial Group (“Springer”). Based on the Receiver’s investigation of the Gallagher Defendants, the Receiver, in his capacity as the Receiver, and as Assignee of the Investors, asserted claims against KMS and Springer for aiding and abetting securities fraud in violation of the Texas Securities Act, negligence and negligent supervision, and breach of fiduciary duties. In response, both KMS and Springer denied the allegations of the Receiver and denied any liability owing to the Receiver or to the Receiver, as Assignee.

On the eve of the Receiver filing suit against KMS and Springer, the parties successfully mediated their dispute. KMS and Springer have agreed to pay the Receivership a total of $250,000 in exchange for a full and complete release of claims by the Receiver, both in his capacity as the court-appointed Receiver and as assignee of assigning investors. Without any party admitting liability, and in order to avoid the expense of litigation, the Receiver, KMS, and Springer agreed to fully settle the Receiver’s claims against KMS and Springer by KMS paying to the Receiver the sum of $225,000 and Springer paying to the Receiver the sum of $25,000. Such payments will be made within thirty days after the Court approves the Settlement Agreement between the parties.

The Receiver believes that this settlement is in the best interest of the assigning investors because, among other things, (1) KMS and Springer did not receive any funds from Defendants, whether in the form of commissions, gifts, or otherwise; (2) KMS and Springer contend that they were not the cause of any investor losses; (3) KMS and Springer argue that they did not substantially assist the DGI Ponzi Scheme because they did not refer customers to Gallagher; rather Gallagher was the one who referred pre-existing DGI investors to invest with KMS and Springer; (4) KMS and Springer deny that they had any responsibility to supervise investments made with Gallagher outside of KMS or Springer; (5) Under the Receiver’s fee agreement with the law firm representing the Receiver, if a lawsuit is filed against KMS, the law firm receives a 30% contingent fee from the recovery (subject to the approval of this Court). Since a lawsuit was not filed prior to the settlement of the claim, the attorneys’ fees are limited to the hourly fees incurred to date, which are less than $60,000 and subject to approval by the Court. Therefore, a settlement at this point maximizes the return to the investors; and (6) KMS and Springer deny any liability to the Receiver.

Copies of the motion and settlement agreement are available here. A copy of the proposed Mutual Release is available here. A letter being sent to the assigning investors is available here. If you are an assigning investor who, after reviewing the motion and settlement agreement, objects to the KMS/Springer settlement, please respond in writing to the Receiver as soon as possible.

***Update May 6, 2020***

On May 4, 2020, the Receiver filed his Motion for Appointment of Appraisers, Approval of Appraisals of Certain Real Property and Setting Hearing Regarding Approval of Sale. In connection with his settlement with G. Gallagher in the Fall, the Gallagher residence in North Richland Hills (the “Gallagher Home”) was transferred to the Receiver. The Receiver engaged a real estate broker, who has been actively marketing the Gallagher Home since December 2018. On April 29, the Receiver entered into a contract to sell the Gallagher Home for $420,000. Pursuant to 28 U.S.C. § 2001, the Receiver obtained three independent appraisals, which indicate that the fair market value of the property is approximately $480,000. The Receiver believes that the sales price of $420,000, while less than the appraised fair market value, is in the best interest of the receivership because (1) the property has already been listed for sale for over 100 days, (2) the current pandemic adds uncertainty to the present and future real estate markets, (3) the Gallagher Home needs extensive updating, which discourages certain buyers for the neighborhood in which it is located, and (4) the sales price exceeds the statutory minimum price (2/3 of appraised value) by $100,000. A copy of the Motion is available here. The Court will set a hearing on the Motion at a later date. Notice of the hearing will be posted on the Receivership Website.

***Update April 30, 2020***

On April 30, 2020, The Receiver filed his status report for the First Quarter of 2020. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is July 30, 2020.

***Update April 27, 2020***

On April 24, 2020, the Receiver filed a lawsuit on behalf of himself and assigning investors against the Institute for Wealth Holdings, Inc. (formerly known as Cherry, Inc.), the Institute for Wealth Advisors, Inc. (formerly known as Cherry Investment Advisors, Ltd.), the Institute for Wealth Management, LLC, and Dewey M. Moore, Jr. in Dallas County. Among other things, the Receiver alleges that the Cherry Defendants provided material aid to the Gallagher Defendants’ Ponzi scheme and that the success of Doc Gallagher in soliciting monies from investors for the Ponzi scheme was substantially attributable in whole or in part to the recklessness of the Cherry Defendants. With respect to clients who were dual clients of both Cherry and the Gallagher Defendants, the Receiver has additionally alleged that the Cherry Defendants negligently violated their common law duties of care and breached fiduciary duties owed to those investors A copy of the lawsuit is available here.

***Update April 27, 2020***

On April 24, 2020, the Receiver filed his Motion to Approve Settlement Agreement with Brooke Taylor. As part of his investigation, the Receiver determined that Taylor received payments totalling $496,250 from the Defendants. To recover some or all of these payments, the Receiver filed a lawsuit against Ms. Taylor. Ms. Taylor contends that she provided reasonably equivalent value in good faith to the Defendants in exchange for the payments she received. Specifically, she provided the Receiver with documents regarding social media services she provided to the Defendants. In addition, Taylor cooperated with the Receiver by providing the Receiver with a sworn statement of financial condition showing that her liabilities far exceed her non-exempt assets.

In order to avoid the expense and uncertainty of litigation and to provide funds to the investor victims of the Defendants, the Receiver and Taylor agreed to fully settle the Receiver’s claims against Taylor by Taylor paying to the Receiver the sum of $150,000 in two installments: 1) $50,000 upon the later of May 1, 2020 or within five days after the Court approves the Settlement Agreement; and 2) $100,000 upon the earlier of October 1, 2020, or five days after the closing of the sale of her condominium. A copy of the motion is available here, a copy of the Taylor settlement agreement is available here.

***Update April 24, 2020***

On April 23, the Receiver filed a Notice of Claimants’ Objections to April 9, 2020 Findings, Conclusions, and Recommendations. In response to the Receiver’s April 10 letter, three claimants submitted objections to the Findings, Conclusions, and Recommendations. A copy of the Notice is available here. A copy of the Appendix filed in support of the Notice is available here. A copy of the Court’s Final Claims Order will be posted to the Receivership website when it is received.

***Update April 10, 2020***

On April 9, 2020, the Court entered its Findings, Conclusions, and Recommendations regarding the Claims Adjudication Process (the “Initial Claims Order”). A copy of the Initial Claims Order is available here. A copy of a letter sent to investors who previously submitted objections to the receiver is available here.

If you object to any part of the Initial Claims Order, you must file specific written objections within 14 days after receiving a copy of the Order. In order to ensure that your objection is timely submitted to the Court, please be sure I receive your submission on or before April 20. Because of the current pandemic, my office is currently closed to the public so you will not be able to drop off a physical copy at my office. The best way to submit any objection is via email to GallagherFinancial.receivership@brownfoxlaw.com. Alternatively, we are still checking the mail frequently, or you can fax your objection to 214-327-5001. If you submit an objection, please also call 469.893.9960 and leave a message so that we know to be looking for your objection.

Please also note that the Court has ordered that any objection to the Initial Claims Order must be specific. In order to be specific, an objection must identify the specific finding or recommendation to which the objection is made, state the basis for the objection, and specify the place in the Initial Claims Order where the disputed determination is found. Do not merely reference your prior objection, rather list out the reasons for your objection. Failure to file specific written objections will bar an investor from appealing the factual findings and legal conclusion of the magistrate judge if they are accepted or adopted by the district court, except upon grounds of plain error.

***Updated March 27, 2020***

On March 27, a Dallas County District Judge approved a plea agreement between W. Neil “Doc” Gallagher and the Dallas County District Attorney’s office that results in Mr. Gallagher being sentenced to 25 years in prison and ordered to pay $10,386,816.68 in restitution relating to losses suffered by the investors named in the Dallas County indictment. Copies of the judicial confessions, plea agreements, and judgments are available here.

***Update March 24, 2020***

On March 24, the Receiver filed a Fourth Supplemental Brief in connection with the Claims Adjudication Process. A copy of the Fourth Supplement is available here. A Third Supplemental Brief was previously filed on February 12 and is available here. The Court held its Claim Adjudication Hearing on January 30, 2020, and the Receiver is currently awaiting a Claims Order. The Receiver will post the Claims Order to the website once the Order is entered.

***Update March 10, 2020***

On March 10, 2020, Judge Cummings entered an Order authorizing the Receiver to sell the Stephenville Property. A copy of the Order can be found here. The Receiver and his real estate brokers are still actively selling the Dublin Ranch, Weatherford Ranch, and North Richland Hills Home. Further information regarding these properties can be found in the Receiver’s prior quarterly reports.

***Update March 6, 2020***

On March 5, 2020, the Court entered an Order granting Receiver’s Motion to Approve Settlement Agreements with Jessica and Joseph Cunningham, Jean Organ, Bernard and Chandra Vokoun, Steve Feeken, Jackie Lankton, Connie Ogden, Cyrus Sajna, Randall Terry, and Joe Kosek. A copy of the Order can be found here.

***Update March 4, 2020***

On March 3, 2020, the Receiver filed his Motion to Approve Settlement Agreements with Jessica and Joseph Cunningham, Jean Organ, Bernard and Chandra Vokoun, Steve Feeken, Jackie Lankton, Connie Ogden, Cyrus Sajna, Randall Terry, and Joe Kosek. The Cunninghams, Ms. Organ, and the Vokouns were investors in Gallagher’s Diversified Growth and Income Strategies Account who received back their principal investment plus interest. As discussed more fully in the Motion to Approve Settlement Agreements (which is available here), the Receiver has already received a return of $348,879.03 in interest from similar “Net Winners,” and has received written commitments of repayment as to an additional $321,505.67 in net winnings. The other settlement agreements relate to Gallagher employees, other individuals who may or may not have provided services to Gallagher, and recipients of gifts. Copies of the Settlement Agreements are available here. The Receiver’s investigation of other recipients of fraudulent transfers is ongoing.

***Update February 26, 2020***

On February 26, 2020, the Receiver filed a lawsuit on behalf of himself and assigning investors against Salem Media Group, Inc. (the owner of 94.9 KLTY and 660 KSKY) and Mark Davis in Dallas County. Among other things, the Receiver alleges that Salem provided material aid to the Gallagher Defendants’ Ponzi scheme and that Salem was reckless in allowing Gallagher to solicit investors through broadcasts from Salem’s Radio Stations for Gallagher’s Ponzi Scheme. A copy of the lawsuit is available here. Further updates will be posted to the website as the case against Salem and Davis progresses and as additional lawsuits are filed by the Receiver against other defendants.

***Update February 18, 2020***

On February 18, 2020, Magistrate Judge David Horan entered an order appointing three appraisers in connection with the sale of the Stephenville Property and accepting their appraisals. A hearing on regarding confirmation of the sale of the Stephenville Property for $99,500 will be held on March 9, 2020 at 9:30 a.m. at the Earl Cabell Federal Building. The Receiver will also post notice of the sale by publication. A copy of the Order can be accessed here. Details regarding the Receiver’s motion are included in his February 13, 2020 update below.

***Update February 13, 2020***

On February 13, 2020, the Receiver filed his Motion for Appointment of Appraisers, Approval of Appraisals of Certain Real Property and Setting Hearing Regarding Approval of Sale. In connection with his settlement with D. Carter in the Fall, three properties were transferred to the Receiver. All three properties have been listed for sale (in addition to the Gallagher residence in Hurst), and the Receiver has entered into a contract to sell one of the properties (in Stephenville) for $99,500. Pursuant to 28 U.S.C. § 2001, the Receiver obtained three independent appraisals, which indicate that the fair market value of the property is approximately $97,500. The Receiver believes that the sales price of $99,500 is in the best interest of the receivership and exceeds the statutory minimum price (2/3 of appraised value). A copy of the Motion is available here. The Court will set a hearing on the Motion at a later date. Notice of the hearing will be posted on the Receivership Website.

***Update February 10, 2020***

On February 6, 2020, the Receiver filed his unopposed Fourth Quarterly Fee Application. The Court approved the fee application on February 10, 2020. Copies of the Order and Fee Application are available here and here.

***Update January 31, 2020 (Posted February 21, 2020)***

On January 30, 2020, The Receiver filed his status report for the Fourth Quarter of 2019. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is April 30, 2020.

On January 30, the Receiver and several investors also attended the claims adjudication hearing. The Court has taken the matter under advisement and will issue an order in the future.

***Update January 28, 2020***

On January 28, the Receiver filed a Second Supplemental Brief in connection with Thursday’s claims adjudication hearing. A copy of the Second Supplemental Brief can be located here. If you did not file an objection with the Receiver, there is no need to attend the claim adjudication hearing. The Defendants (including Mr. Gallagher) will not be in attendance at the hearing. If you filed an objection, you are welcome to attend the hearing, but your objection will be heard regardless of whether you attend the hearing. Attendance is not mandatory.

***Update January 27, 2020***

On January 27, 2020, the Receiver filed a Motion to Approve Settlement Agreement with DJRD Broadcasting, LLC (“KAAM”). As part of his investigation, the Receiver traced $799,654 of investor funds to KAAM for broadcasting time purchased by Gallagher. The Receiver sought a return of these funds as fraudulent conveyances and additionally alleged that KAAM violated the Texas Securities Act by aiding and abetting the securities fraud committed by Gallagher. KAAM denied any liability to the Receiver and contented that it provided reasonably equivalent value in exchange for the monies received from the Defendants, that KAAM was not aware of the Ponzi scheme being perpetrated by the Defendants, that KAAM did not violate the TSA, and that the monies received from the Defendants were not fraudulent conveyances. On January 10, 2020, prior to the filing of any lawsuit, the Receiver and KAAM successfully mediated their dispute. KAAM has agreed to pay the Receivership the sum of $250,000 in exchange for a full and complete release of claims by the Receiver, both in his capacity as the court-appointed Receiver and as assignee of assigning investors. The Receiver believes that this settlement is in the best interest of the assigning investors because, among other things, (1) based upon the Receiver’s review of KAAM’s tax returns and other financial documents, the Receiver agrees that KAAM’s financial condition is limited, (2) under the Receiver’s fee agreement, early pre-suit mediation of this dispute will result in attorneys’ fees of less than $20,000, whereas if the settlement were to be rejected and a lawsuit filed, the Receiver’s attorneys would be entitled to 30% of any proceeds, and (3) KAAM has continued to deny any liability to the Receiver.

The Receiver has identified several other entities and individuals who received fraudulent conveyances and/or aided and abetted the Gallagher Ponzi scheme. One lawsuit has already been filed (see early postings about the Ciera Bank lawsuit), and the Receiver anticipates either settling with of filing suit against the other entities and individuals in the near future.

A copy of the motion is available here, a copy of the KAAM settlement agreement is available here, and a letter being sent to the assigning investors is available here. If you are an assigning investor who, after reviewing the motion and settlement agreement, objects to the KAAM settlement, please respond in writing to the Receiver as soon as possible.

***Update January 13, 2020***

The hearing on the Receiver’s Original Claims Report, Supplemental Claims Report, and all objections has been set for 9 a.m. Thursday, January 30, 2020, at the Earle Cabell Federal Building, 1100 Commerce Street, 15th Floor, Dallas, Texas 75242. A copy of the Order setting the hearing is available here. A copy of the letter being sent to investors who filed objections is available here. All objections submitted to the Receiver before the October 15 objection deadline will be heard at the hearing, regardless of whether the investor attends the hearing. While investors are welcome to attend the hearing, no investor is required to attend the hearing to have their objection heard.

***Update January 6, 2020***

On December 4, 2019, the Receiver filed a lawsuit on behalf of himself and assigning investors against Ciera Bank in Dallas County. Among other things, the Receiver alleges that Ciera Bank provided material aid to the Gallagher Defendants’ Ponzi scheme and that Ciera was reckless in allowing the Ponzi scheme to be operated daily under the Bank’s supervision. A copy of the lawsuit is available here. On January 6, 2020, Ciera Bank answered the lawsuit and asked to transfer venue to Young County. Further updates will be posted to the website as the case against Ciera Bank progresses and as additional lawsuits are filed by the Receiver against other defendants.

***Update December 2, 2019***

The Court has vacated the December 17, 2019 Claims Adjudication Hearing. While the new hearing date has not yet been set, the Court has indicated that it will reschedule the hearing in due course. As soon as the Receiver learns of the new hearing date, he will post the information to this website and mail notice of the hearing to all claimants who filed objections. A copy of the Court’s order is available here.

***Update November 21, 2019***

The hearing on the Receiver’s Original Claims Report, Supplemental Claims Report, and all objections has been set for 1:00 p.m. on December 17, 2019, at the Earle Cabell Federal Building, 1100 Commerce Street, Dallas, Texas 75242. A courtroom has not yet been designated. The Receiver will provide a further update once the courtroom is set. A copy of the Order setting the hearing is available here. A copy of the letter being sent to investors who filed objections is available here. All objections submitted to the Receiver before the October 15 objection deadline will be heard at the hearing, regardless of whether the investor attends the Hearing. While investors are welcome to attend the hearing, no investor is required to attend the hearing to have their objection heard.

***Update November 19, 2019***

On November 14, 2019, the Receiver filed his unopposed Third Quarterly Fee Application. The Court approved the fee application on November 18, 2019. Copies of the Order and Fee Application are available here and here.

***Update November 13, 2019***

The Receiver filed his Supplemental Claims Report Regarding Objections Received from Investor and Creditor Claimants on November 1, 2019. A copy of the Supplemental Claims Report is available here. Updated claim summary exhibits are attached to the Receiver’s Declaration, available here. The Court will set a hearing on the Objections and the Supplemental Claims Report at some point in the near future, and notice of the hearing will be provided to all claimants who filed objections.

***Update October 31, 2019***

The Receiver filed his status report for the Third Quarter of 2019 with the District Court on October 30, 2019. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is January 30, 2020.

***Updated September 17, 2019***

On September 16, 2019, the Receiver filed his Claims Report. A copy of the Claims Report is available here. On or before September 25, the Receiver will send out notice to each Claimant of the Receiver’s recommendation concerning the Claimant’s claims. All objections to any part of the Claims Report must be filed with the Receiver and not with the Court and must be deposited in the United States mail on or before October 15, 2019. Please send any objections to the following address:

***Update September 13, 2019***

On September 12, 2019, the Receiver filed an unopposed Motion to Approve Settlement Agreements with Gail Gallagher, Debra Carter, and Wilene Dunn. A copy of the motion and settlement agreements can be obtained here. The settlements will result in various funds and real property flowing into the Receivership. This includes the Gallagher residence, informally valued at approximately $510,000, and properties held by Debra Carter, which should result in equity realized by the Receivership between $1,337,584.25 and $1,612,954.25. If the Court approves the settlement agreements and upon closing of each transaction, the Receiver will begin the process of selling the properties and depositing any proceeds into the Receivership account.

On August 14, 2019, the Receiver filed his unopposed Second Quarterly Fee Application. The Court approved the fee application on August 16, 2019. Copies of the Order and Fee Application is available here and here.

The Receiver’s Claim Report, which will be posted to this site when available, is due on September 16.

***Update August 21, 2019***

As discussed more fully in the Receiver’s Second Quarterly Report (available here), in June the Receiver discovered an office Mr. Gallagher had concealed on Pipeline Road in Hurst (the “Pipeline Office”). Within the Pipeline Office, the Receiver discovered a missing safe. After multiple attempts to sell the safe through multiple avenues, the Receiver has agreed to sell the safe for the sum of $2,250 to the landlord of the Pipeline Office. In accordance with the Court’s prior Order, the Receiver is required to file a notice of the proposed sale of any assets over $1,000. The Notice can be located here.

***Update July 30, 2019***

The Receiver filed his status report for the Second Quarter of 2019 with the District Court on July 30, 2019. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is October 30, 2019. If you are an impacted investor and have not already done so, please complete both your Proof of Claim and your Assignment and return to the Receiver before August 15, 2019.

***Update June 27, 2019***

Notice to all Investors: Packets containing the Proof of Claim were mailed to all previously identified investors during the first week of June. If you believe you are an investor but did not receive a packet, please contact the Receiver at (469) 893-9960 or GallagherFinancial.receivership@brownfoxlaw.com.

We have received completed Proofs of Claim from many investors. If you have not done so already, please also send the Receiver the Assignment that was included in your packet. If you need another copy of the assignment, please contact the Receiver at the number above. Also, if you have not done so already, please send the Receivers copies of supporting documentation for your claim. The deadline to submit investor claims is August 15, 2019.

Completed claim forms, assignments, and supporting documentation should be mailed or delivered to the Receiver at the following address:

Cort Thomas, Receiver Gallagher Receivership, 8111 Preston Road, Ste. 300 Dallas, Texas 75225

In July, the Receiver will be filing his second Status Report, which will detail the efforts and progress of the Receivership between April and June 2019.

***Update – May 28, 2019***

On May 22, 2019, the United States District Court entered an Order Establishing Claims Adjudication Process for the Gallagher Receivership. A copy of the Order can be viewed by clicking here. Under the Court’s Order, any person who wishes to assert a claim against the Receivership Assets, the Defendants W. Neil “Doc” Gallagher, Gallagher Financial Group, and W. Neil Gallagher, Ph.D. Agency, Inc., the Receiver, or the property in the possession of the Receiver, must file a Proof of Claim with the Receiver. A copy of the Proof of Claim form can be viewed by clicking here. A copy of the Notice of Right to File Claim can be viewed by clicking here.

All claims, including investor claims, must be received by the Receiver on or before August 15, 2019. A paper copy of the claim form will be deposited in the mail by the Receiver’s office and sent to all previously identified investors and creditors on or before Tuesday, June 4, 2019. If you have any questions regarding the Claim form or any other matter, please contact the Receiver at (469) 893-9960 or GallagherFinancial.receivership@brownfoxlaw.com, and someone in his office will give you a call. Completed claim forms should be mailed or delivered to the Receiver at the following address:

Cort Thomas, Receiver Gallagher Receivership 8111 Preston Road, Ste. 300 Dallas, Texas 75225

***Update – May 13, 2019***

As part of his efforts to liquidate assets belonging to the Receivership Defendants, the Receiver has established an online auction of items located in the Receivership Defendants’ Hurst and Dallas offices. These items can be viewed at the following website: https://Lonestarauctionhouse.hibid.com.

In accordance with the Court’s Order Governing the Administration of the Receivership (available here), none of the parties to this lawsuit or the Receiver, their agents, assigns, or employees may purchase any of the Personal Property or receive any such property through abandonment or otherwise.

***Update – April 23, 2019***

Last week, the Court approved the Receiver’s motion for an order governing the administration of the receivership. Among other things, the Court’s order gives Mr. Thomas the authority to store, sell, and otherwise dispose of various items located in Gallagher Financial Group’s Hurst and Dallas offices, as well as various storage units. As part of his efforts to vacate these spaces, the Receiver anticipates having an online auction of various items belonging to Gallagher Financial Group. Additional details regarding the online auction will be posted once they are finalized. A copy of the motion is available here. A copy of the Court’s order is located here.

***Update – April 8, 2019***

The Receiver filed his thirty-day status report with the District Court on April 7, 2019. Among other things, the Receiver describes the work he and his team completed in the first thirty days of the Receivership, as well as a proposed plan for administering the Receivership going forward. A copy of the Report may be viewed here. The next immediate steps for administration of the Receivership are (1) performing a forensic accounting of the Defendants’ bank accounts to trace where investor monies flowed and (2) completing the identification of investors in the DGI Account. If you have not already done so, please complete the Investor Information Form. The deadline for the Receiver to file his next report is July 29, 2019.

Many investors have requested information regarding the hearing that was originally set for March 22, 2019, and was most recently-reset in April. These hearings did not occur because Mr. Gallagher ultimately agreed to the entrance of a Preliminary Injunction. No hearings are currently set in SEC v. W. Neil “Doc” Gallagher, et al.

As of April 7, 2019, Mr. Gallagher was still in a Dallas County jail awaiting trial on criminal charges.

***Original Posting***

On March 8, 2019, the Securities and Exchange Commission filed a lawsuit against W. Neil “Doc” Gallagher, Gallagher Financial Group, Inc. and W. Neil Gallagher, Ph.D. Agency, Inc., (the “Defendants”) alleging all had participated in a long-running scheme to defraud investors, and had misappropriated millions of dollars, or used investor funds to make “Ponzi” payments. The Court presiding over the case found good cause to believe the allegations were true, and accordingly, entered a Temporary Restraining Order, Order Freezing Assets, etc., and also entered an Order Appointing Receiver.

Pursuant to the Receivership Order, Mr. Cort Thomas was appointed Receiver over all assets of each Defendant. As Receiver, Mr. Thomas works as the Judge’s agent. He does not represent the Securities and Exchange Commission or any other party, but instead, has been ordered to take control over all assets of the Defendants, and halt all services and operations. He will be seeking information about and from all affected investors, and providing additional information about the lawsuit, and the progress of his investigation.

You may email Mr. Thomas at GallagherFinancial.receivership@brownfoxlaw.com. Alternatively, you may leave a message for him at 469-893-9960, and someone will return your call as soon as possible. Mr. Thomas understands how distressing and shocking the allegations and developments may be and will provide as much information about the status of the lawsuit, his investigation, and next steps as soon as possible. Thank you for your patience.

Files:

***Update August 28, 2025***

***Update July 30, 2025***

***Update May 1, 2025***

***Update January 29, 2025***

***Update December 30, 2024***

Update August 28, 2025

Update July 30, 2025

Update May 1, 2025

Update January 29, 2025

Update December 30, 2024