NEWARK, N.J. — This is an official press release from the U.S. Department of Justice (USAO - New Jersey), published as received.

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%.

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 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. 

Senior Counsel Lamparello credited special agents of the United States Attorney’s Office, under the direction of Acting Special Agent in Charge Matthew Maltese in Newark, and the inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, with the investigation. He 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, Chief of the Economic Crimes Unit, and Andrew Kogan of the Cybercrime Unit in Newark.

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Defense counsel: Michael Koribanics, Esq.