“Income Flood” Ponzi Advisor Sentenced

Posted on July 2nd, 2019 at 9:38 AM
“Income Flood” Ponzi Advisor Sentenced

From the Desk of Jim Eccleston at Eccleston Law LLC:

U.S. District Judge Ricardo S. Martinez sentenced former investment advisor Dennis Gibb to five years in prison for stealing over $3 million from 15 investors. In March, Gibb pled guilty to wire fraud and the production of false records to obstruct a civil action brought forward by the SEC. Additionally, Gibb will pay restitution of over $4 million to his victims as outlined in his plea agreement.  Gibb had collected $7.3 million from 25 investors and relocated over $3.1 million to private bank accounts in order to pay personal and business expenses.

The SEC has banned Gibb from the securities industry. According to the SEC, Gibb created a private fund in 2008 known as ‘Income Flood’. Gibb advertised the fund as an investment strategy that would yield consistent returns in order to boost retirement savings.

Gibb continued his scheme by falsely claiming to investors that the fund had grown to $7.8 million in assets, while in reality the account balances were below $2 million. Also, Gibb falsely advertised that his firm managed over $1 billion in assets, but the actual asset value was closer to $73 million. Finally, Gibb claimed to investors that the fund was independently audited; however, no audit was ever completed.

In his defense, the 72 year-old Gibb presented a lack of criminal history as well as regret for his actions in this case. Prior to his sentencing, Gibb expressed his “advanced” age and several health issues, many of which were due to his military service in the Vietnam War.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, ponzi scheme, theft, sec, dennis gibb, civil action

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).