Attention in one of the biggest financial swindles in Dallas-Fort Worth history now shifts from the con man to a woman described in court testimony as his mistress.

Prosecutors allege that Debra Mae Carter received $1.6 million from William Neil “Doc” Gallagher and used the money to invest in real estate. Prosecutors say they hope to prove Carter hid property from authorities who are working to collect assets to pay back victims of Gallagher’s Ponzi scheme.

Gallagher, the AM radio financial guru who called himself the Money Doctor even though his doctorate was in philosophy, was sentenced last week in Tarrant County to three life sentences, plus 30 years.

Since he’s 80, he’ll die in prison.

Add to that a 25-year sentence he received in Dallas County, plus an order to pay $10 million back to victims (which will never happen).

Gallagher avoided a trial by pleading guilty to fraud. Cort Thomas, the court-appointed receiver placed in charge of Gallagher’s shuttered business, says he believes Gallagher stole at least $23 million from 190 Dallas-Fort Worth victims.

Gallagher never invested the money, but instead shoveled it into his ongoing Ponzi scheme.

Victims testify

Last week, for the first time, victims testified how he ruined their lives by wiping out their life savings. Gallagher, who has been in jail for two years, wore a striped jail jumpsuit. His gray hair is long, and he has a beard.

He did not speak at the sentencing hearing. He stared straight ahead and did not…

Read more…