By: Richard L. Smith
A Chicago man has been sentenced to more than 12 years in federal prison for orchestrating a wire and commodities fraud scheme that caused losses exceeding $4 million to more than a dozen victims, according to a statement released by federal authorities.
Philip Galles, 59, of Chicago, Illinois, was sentenced on February 5, 2026, to 151 months in prison and five years of supervised release after previously pleading guilty in Newark federal court to charges of wire fraud and commodities fraud.
The sentence was imposed by Esther Salas. Galles was remanded into the custody of the U.S. Marshal following the hearing and was also ordered to pay more than $4 million in restitution to his victims.
According to court documents and statements made during the proceedings, Galles—formerly a commodities trader—falsely claimed he would invest client funds in commodity futures through his Chicago-based firm, Tyche Asset Management.
He and others associated with the company allegedly told investors that Tyche used proprietary trading strategies and generated extraordinary annual returns exceeding 100 percent.
Federal prosecutors said those claims were entirely false.
Instead of making legitimate investments, Galles operated the firm as a Ponzi-style scheme, using new investor funds to pay earlier investors and cover his own personal expenses, including luxury clothing, high-end vehicles, and rent for a luxury apartment.
Investigators also revealed that during the probe, Galles met with an undercover agent in New Jersey posing as an investment manager interested in making a large investment.
During those meetings, Galles allegedly made numerous false statements, including claims that Tyche had generated annual returns of 336 percent, raised more than $2 billion within 60 days of launching, and had secured investments from a Kuwaiti sovereign fund and a prominent professional sports team owner. 
Authorities said those claims, along with statements about his educational background, were fabricated.
The case was prosecuted in the U.S. District Court for the District of New Jersey.