Former Commodities Trader Sentenced to 151 Months for Engaging in Multi-Mullion Dollar Wire and Commodities Fraud Scheme

NEWARK, N.J. – A Chicago man was sentenced to 151 months in prison and five years of supervised release for engaging in a wire and commodities fraud scheme that caused losses of more than $4 million to over a dozen victims, Senior Counsel Philip Lamparello announced.

Philip Galles, 59, of Chicago, Illinois, previously pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to an indictment charging him with wire and commodities fraud. Judge Salas imposed the sentence on February 5, 2026. At the conclusion of the sentencing hearing, Judge Salas remanded Galles to the custody of the U.S. Marshal to begin serving his sentence. Galles was also ordered to pay more than $4 million in restitution to victims of the scheme.

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%.

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