Former Commodities Trader Pleads Guilty to Multi-Mullion Dollar Wire and Commodities Fraud Scheme

Press Release

Newark, N.J. - A Chicago man admitted to engaging in a wire and commodities fraud scheme that caused losses of more than $4 million, U.S. Attorney Alina Habba announced.

Philip Galles, 59, of Chicago, Illinois, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to both counts of an Indictment charging him with wire and commodities fraud.

According to documents filed in this case and statements made in court:

Galles, a former commodities trader, defrauded his victims by falsely claiming that he would invest their money in commodity futures through his purported investment company, Tyche Asset Management, based in Chicago, Illinois. As part of the scheme, Galles and those working for him falsely told prospective investors that Tyche had a history of success using proprietary trading strategies, with extraordinary annual rates of return exceeding 100%.

But in reality, Galles made virtually no legitimate investments in commodity futures or otherwise. Galles instead ran Tyche like a Ponzi scheme and used investor money to pay back other investors and on to pay his own personal expenses-including high-end clothing, rent on a luxury apartment, and luxury automobiles.

During the investigation, Galles met with an undercover agent in New Jersey purporting to be an investment manager looking to make a large investment. Galles repeatedly lied during those meetings about Tyche and his personal history. Galles falsely claimed that Tyche had annual returns of 336%, raised over $2 billion within 60 days of starting the fund, and had prominent investors, including a Kuwaiti sovereign fund and a well-known owner of a professional sports team. Galles also falsely claimed that he graduated from a prominent university in the Midwest.

In total, through his scheme, Galles defrauded more than a dozen victims out of more than $4 million.

The wire fraud charge carries a maximum sentence of 20 years in prison and the commodities fraud charge carries a maximum sentence of 25 years in prison. Both charges also carry a fine of up to $250,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for September 23, 2025.

U.S. Attorney Habba credited special agents of the United States Attorney's Office, under the direction of Special Agent in Charge Thomas Mahony in Newark, and the inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, with the investigation. She also thanked the Commodity Futures Trading Commission and the National Futures Association for their role in the investigation.

The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit and Andrew Kogan of the Cybercrime Unit in Newark.

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Defense counsel: Michael Koribanics, Esq.

Updated April 17, 2025