Mistress of Texas Ponzi schemer and ex-advisor gets life in prison

The mistress of a Texas Ponzi schemer who advertised on Christian radio programs was sentenced on Tuesday to life in prison, according to a statement from the district attorney of Tarrant County, which includes Fort Worth and Arlington.

Debra Mae Carter, 65, was the mistress of William Neil “Doc” Gallagher, a former investment advisor representative who courted clients with Bible-thumping zeal and loads of Texas charm, and was sentenced in 2021 to three life sentences — plus another 30 years in prison — for leading a $32 million Ponzi scheme.

Gallagher's main role in the scheme was to bring in the money; Carter's role was to make sure it was not recovered by the victims, according to a statement from the Tarrant County Criminal District Attorney's office. The two ultimately planned to retire to a huge ranch together.

"These were hard-earned retirement dollars which … got put into her account over and over again," said Tarrant County Assistant District Attorneys Lori Varnell,. "She is a blight on society. She's just a liar. That's what she does."

At the end of a two-week trial that featured an ex-spouse, investors – and even Gallagher himself – a Tarrant County jury on July 8 found Carter guilty of money laundering for the role she played in Gallagher’s illegal scheme.

Carter represented herself in the trial that was marked by delays when witnesses weren’t available and
when Carter briefly checked herself into the hospital.

Gallagher was the head of the Gallagher Financial Group, which advertised on Christian radio with the tag line, “See you in church on Sunday.”

According to BrokerCheck and Securities and Exchange Commission records, Gallagher was a registered rep with seven different broker-dealers from 1985 to 2001 and an investment adviser from 2003 to 2009.

“That’s a long sentence, based on my knowledge of Ponzi schemes,” said Jeff Sonn, a plaintiff’s attorney. “The sentence is beyond what we normally see and pretty surprising.”

“Lou Perlman was convicted in a $500 million scheme in 2008 and got 25 years,” Sonn said. “She probably ruined a lot of lives. I’m not crying for her.”

Carter laundered much of the money through rental homes, land, fake charities, and more, according to the statement from the Tarrant County Criminal District Attorney's office. About $200,000 in gold and silver was seized after it was found in her trailer.

Brenda Wilkerson, an 84-year old victim, invested with Gallagher money she and her now late husband inherited, according to the district attorney’s office. If she had that money now, she could pay off the mortgage on her home. Instead, she said she will be making payments until she dies.

"Debbie Carter deserves life in prison," Wilkerson said. "She has ruined so many lives. It's despicable."