Senior Counsel Philip Lamparello announced that Philip Galles, 59, of Chicago, Illinois, was sentenced to 151 months in prison and five years of supervised release on February 5, 2026. Galles was also forced to pay over $4 million in restitution to the victims. Esther Salas imposed the sentence in the United States District Court in Newark. At the conclusion of the hearing, Galles was remanded in the custody of the United States Marshal to begin serving his sentence.
Galles previously pled guilty to an indictment alleging wire fraud and commodities fraud.
Scheme Centered on False Investment Claims
According to court documents and admissions made during the proceedings, Galles misled investors by purporting to invest their money in commodities futures through his alleged Chicago-based firm, Tyche Asset Management. Prosecutors allege that Galles and those who worked with him misrepresented the firm’s track record and employed proprietary trading tactics capable of delivering remarkable annual returns of more than 100%.
In actuality, authorities claimed Galles made few or no legitimate investments. Instead, Tyche Asset Management was run as a Ponzi scam, with money from new investors used to pay off previous investors and meet Galles’ personal costs. These costs included fancy clothing, rent for a high-end apartment, and luxury vehicles.
Undercover Meetings in New Jersey
During the FBI inquiry, Galles met in New Jersey with an undercover agent masquerading as an investment manager looking to make a large investment. Prosecutors said Galles made false statements during those meetings, including claims that his firm achieved 336 percent annual returns, raised more than $2 billion within 60 days of its launch, and had investors including a Kuwaiti sovereign fund and a prominent professional sports team owner.
Galles also fraudulently claimed to have graduated from a well-known Midwestern university, according to court documents.
Agencies Involved
Senior Counsel Lamparello credited investigators from the United States Attorney’s Office in Newark, who worked under Acting Special Agent in Charge Matthew Maltese, and inspectors from the United States Postal Inspection Service, led by Inspector in Charge Christopher Nielsen.
The National Futures Association and the Commodity Futures Trading Commission gave additional support.
The government was represented by Assistant U.S. Attorney Carolyn Silane, leader of the Economic Crimes Unit, and Andrew Kogan of the Cybercrime Unit, both of whom were situated in Newark.
Federal officials stated that the term reflects the scale of the crime and the severe financial harm imposed on victims.
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