Mistress of a Christian radio host, who used a Ponzi scheme to defraud millions of dollars from seniors, sentenced to life in prison

Debra Mae Carter, the mistress of Texas Christian radio host William Neil “Doc” Gallagher, has been sentenced to life in prison for her role in a Ponzi scheme that defrauded nearly 200 retirees of $31 million over a decade.

The Tarrant County District Attorney announced the sentence on Tuesday, highlighting Carter’s pivotal role in the scheme alongside Gallagher.

Gallagher, known as “The Money Doctor,” used his radio show to lure in victims by promising a risk-free income with guaranteed annual returns of 5% to nearly 9%. He assured listeners that investing with him would provide a “retirement income you’ll never outlive.”

While Gallagher focused on collecting the funds, Carter ensured that the victims could not recover their money, making her a critical player in the fraudulent operation.

Prosecutors identified Carter as the mastermind behind the scheme, which was designed to fund the couple’s extravagant retirement plans.

According to Tarrant County Assistant DA Lori Varnell, Carter funneled the stolen money through rental properties, land and fake charities. “These were hard-earned retirement dollars which … got put into her account over and over again,” Varnell said, describing Carter as “a blight on society” and “just a liar.” Authorities seized approximately $200,000 in gold and silver from Carter’s travel trailer.

Following a two-week trial, a jury found Carter guilty of money laundering. Representing herself, the trial was fraught with delays due to unavailable witnesses and Carter’s brief hospitalization. The district attorney’s office noted these disruptions but ultimately secured the conviction.

Gallagher was arrested in Dallas County in March 2019 and later pleaded guilty to theft, money laundering and securities fraud. He was found to have received up to $29.2 million from about 60 investors between December 2014 and January 2019, resulting in a 25-year prison sentence. In August 2019, he was further indicted in Tarrant County and, in November 2021, received three life sentences plus 30 years for charges including forgery, theft, and exploitation of the elderly.

Victims of the scheme, including 84-year-old Brenda Wilkerson, expressed their anger and pain in court. Wilkerson and her late husband, Gary, invested their inheritance with Gallagher and Carter, only to lose it all. Brenda, who married Gary in 1957, had trusted Gallagher after hearing his Christian radio program and reading his book. She invested $50,000 after an elder at her church did the same, believing it was a safe decision.

The loss of her investment came as a devastating blow shortly after her husband’s death in early 2019. “I was already under such tremendous stress from losing my husband. That just really was a punch in the gut,” Wilkerson said. She lamented that, had she not been swindled, she could have paid off her mortgage. Instead, she now faces debt for the rest of her life.

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Carter and Gallagher had envisioned retiring together on a lavish ranch funded by their ill-gotten gains, but their plans unraveled with their arrests and convictions. The life sentence for Carter marks the end of a fraudulent empire built on the exploitation of trusting retirees.