Grand Prairie attorney accused of fraud, urging couple to "take a vacation" to avoid investigators, prosecutors say
A Grand Prairie attorney accused of defrauding roughly 20 investors and pressing a couple to "take a vacation," possibly in Mexico, to avoid investigators, has been arrested, prosecutors said.
David Thomas Gilchrist, 70, was taken into custody on Monday on federal charges of wire fraud, aggravated identity theft, and witness tampering, according to the U.S. Attorney's Office for the Northern District of Texas.
Gilchrist, who prosecutors allege defrauded investors through purported investments in Texas property tax liens, is expected to make his initial federal court appearance on Wednesday.
Investigators say Gilchrist, from April 2023 through January 2026, collected about $1.45 million from investors and returned approximately $789,000.
"He didn't just defraud innocent people out of their savings; he allegedly forged documents, lied to federal regulators, and tried to intimidate witnesses to cover his tracks," U.S. Attorney Ryan Raybould said.
"Attorneys play a vital role in the SEC's investor protection mission," said SEC Inspector General Kevin Muhlendorf. "Where any individual, but especially an attorney, seeks to obstruct SEC Enforcement investigations through lies, fake documents, or witness tampering, SEC OIG will use our law enforcement authority to pursue them with our partners at the Department of Justice."
Prosecutors allege he did not use the money to buy tax liens as promised, but instead commingled investor funds with other money, which he used for personal expenses and to repay earlier investors, conduct prosecutors described as having classic features of a Ponzi scheme.
When the SEC began investigating, Gilchrist allegedly submitted forged quitclaim deeds containing the signatures and stamps of real Texas notaries who had not authorized their use.
They say Gilchrist placed a woman he barely knew at the center of the alleged fraudulent operation and, days before his SEC testimony, went to her home, told her husband the FBI was looking for him, and advised the couple to flee the country for a couple of years, potentially in Mexico.
Gilchrist allegedly gave investors a series of excuses for delayed payments, including a government shutdown, an arson investigation, and a hurricane-relief deployment.
In one instance, he allegedly said he was hospitalized in Tennessee after a colectomy, while records showed him checking into a gym in Mansfield.
If convicted, he faces up to 20 years in prison on each wire fraud and witness tampering charge, plus a mandatory consecutive two-year sentence for aggravated identity theft.
The SEC's Chicago Regional Office has separately filed a civil securities-fraud case against him.
The U.S. Securities and Exchange Commission Office of Inspector General is investigating the case with help from the U.S. Marshals Service, and federal prosecutors are handling the prosecution.
CBS News Texas will provide updates as more information becomes available.