Related Federal Cases
Gary Hirst Sentenced to 8 Years for Tribal Bond Scam
GARY HIRST, a notorious securities fraudster, has been sentenced to 8 years in prison for his role in defrauding a Native American tribal entity and numerous pension fund investors out of tens of millions of dollars. HIRST, who is already serving time for a separate securities scheme, faces additional time behind bars for this complex and brazen securities fraud conspiracy.
According to the indictment, HIRST and his co-defendants, including John Galanis, Devon Archer, and Bevan Cooney, engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (WLCC), a Native American tribal entity, between March 2014 and April 2016.
The defendants convinced the WLCC to issue the bonds through false and fraudulent representations, and then used funds from clients of asset management firms to purchase the bonds, which were illiquid and lacked a ready secondary market.
HIRST and his co-defendants also failed to disclose material facts about the bonds, including that they fell outside the investment parameters set forth in the investment advisory contracts of certain clients. In addition, they misappropriated the proceeds of the bond issuance, using them to support their business and personal interests.
John Galanis, for example, used a portion of the bond proceeds to finance the purchase of a $10 million luxury apartment in Tribeca, while Archer and Cooney used $20 million of bond proceeds to buy the entirety of a second issuance of Tribal Bonds.
Robert Khuzami, Attorney for the United States, stated, “This complex and brazen securities fraud scheme lined the pockets of Gary Hirst and his co-defendants but left the Native American tribal entity, the Wakpamni Lake Community Corporation $60 million in debt.”
HIRST’s sentence marks a significant victory for law enforcement and the victims of his crimes. As he begins his 8-year prison term, HIRST joins a long list of high-profile convictions for securities fraud and other financial crimes.
Key Players: GARY HIRST, John Galanis, Devon Archer, Bevan Cooney, Michelle Morton, Hugh Dunkerley, and Robert Khuzami
Timeline: March 2014 to April 2016
Amount: Tens of millions of dollars
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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