Fake billionaire hedge fund manager arrested after lying to investors about owning 122 luxury cars

A fake billionaire hedge fund manager has been arrested after allegedly lying to clients about having a collection of 122 luxury cars and Picasso paintings to scam victims out of $2 million.

Phillip Galles, 57, also claimed to be “a known owner of a professional sports team” and a Kuwaiti sovereign wealth fund wanted to invest in his fund to generate interest, court documents show.

He told potential clients that his firm, Tyche Asset Management, could offer annual returns of up to 363 percent, according to a lawsuit filed Thursday by The Commodity Futures Trading Commission (CFTC) in Chicago federal court.

Galles, who claims to have studied investment banking at Chicago’s “prestigious” Northwestern University, said Tyche was heavily staffed with former Goldman Sachs employees and at one point had more than 100 employees.

In a separate filing in New Jersey, prosecutors say Galles made almost no investment at all.

Galles boasted of his personal wealth and sophistication in public posts on social media

These include claims about his luxury car collection that supposedly included several Lamborghinis and Ferraris

Instead, he ran his company like a Ponzi scheme, using the money to pay off early investors, “fund his lavish lifestyle” and promote his fabricated image of a hedge fund magnate, the government claimed.

Galles “amplified his pitch” to potential clients by “cultivating an image” of wealth and luxury, according to the CFTC.

The commission said that – in public posts on Instagram – Galles:

• Boasted about his collection of luxury cars supposedly mseveral Lamborghinis and Ferraris’
• Boasted of his luxury homes in Miami, Chicago and Palm Beach’
• Described his high-end watch collection alongside photos of Rolex and Longines watches
• Claimed to have art by Picasso and Chagall in one of his homes
• Touted to open offices in Chicago, Miami and London in October 2022

Galles also praised his deep experience and expertise in commodities trading, educational achievements and past success as a hedge fund manager in Bermuda, “where he was supposedly responsible for managing a portfolio worth billions of dollars.”

But his “claims of his personal and business success are lies,” the documents say.

Galles, who is believed to be living in a $15 million apartment in Chicago, also claimed to own luxury homes in Miami and Palm Beach

His Facebook is littered with pictures of classic cars he claims to own, while also claiming to have attended a prestigious university

His posts also flaunt luxury vacations to destinations around the world

Lawsuits allege that he used client money to pay off early investors and fund his own lifestyle

Galles described his high-end watch collection alongside photos of Rolex and Longines watches

But his “claims about his personal and business success are lies,” the court said

When an alleged victim, a Texas mortgage professional, sent Galles a $100,000 investment, the alleged scammer transferred $19,300 to a personal credit card account, $14,800 to a jewelry store, $10,000 to a prior investor, $9,000 to a mattress store, $ 6,000 to a luxury store. car rental company and $3,200 to his girlfriend, the filings say.

Another victim tried to recoup her $190,000 investment, but Galles told her “among other things that he had changed banks, that Tyche was a victim of fraud, that banks and transfers were not working properly and that he was ill,” the government says.

Galles, who is believed to live in a $15 million apartment in Chicago, appeared in court in the city and remains in custody, according to the New Jersey U.S. attorney’s office.

DailyMail.com has reached out to Galles’ office for comment.